Malaysia – Income Tax Update.

(i) Income Tax (Deduction for the Sponsorship of Scholarship to Malaysian Student Pursuing Studies at the Technical and Vocational Certificate Levels) Rules 2021 — gazetted on 31 December 2021 and deemed to have effect from year of assessment 2015;

(ii) Income Tax (Conditions for the Grant of Rebate under subsection 6D(4)) Order 2021 — gazetted on 31 December 2021 and has effect from year of assessment 2021;

(iii) Income Tax (Deduction for Expenditure in relation to Vendor Development Programme) Rules 2022 — gazetted on 6 January 2022 and have effect from year of assessment 2021; and

(iv) Income Tax (Deduction for Investment in a Project of Commercialisation of Research and Development Findings) Rules 2022 — gazetted on 6 January 2022 and deemed to have come into operation on 7 November 2020.

The following public rulings and technical guideline have recently been published on the Inland Revenue Board’s official website:

(i) Notification of Change of Accounting Period by a Company / Limited Liability Partnership / Trust Body / Co-operative Society (Public Ruling No. 6/2021) — issued on 29 December 2021 to replace Public Ruling No. 8/2019 dated 6 December 2019;

(ii) Partnerships Taxation Part I – Determination of the Existence of a Partnership (Public Ruling No. 7/2021) — issued on 29 December 2021;

(iii) Partnerships Taxation Part II – Computation and Allocation of Income (Public Ruling No. 8/2021) — issued on 29 December 2021;

(iv) Private Retirement Scheme (Public Ruling No. 9/2021) — issued on 29 December 2021 to replace Public Ruling No. 9/2014 dated 24 December 2014;

(v) Tax Treatment of Research and Development Expenditure Part II – Special Deductions (Public Ruling No. 10/2021) — issued on 29 December 2021 to replace Public Ruling No. 6/2020 dated 13 August 2020;

(vi) Bilateral Credit and Unilateral Credit (Public Ruling No. 11/8/2021) — issued on 31 December 2021 to replace Public Ruling No. 11/2011 dated 20 December 2011; and

(vii)Guidelines on the Application Procedure for a Special Deduction in respect of a Qualifying Research and Development Activity — issued on 29 December 2021.

For further information, please contact:

Anand Raj, Head of Tax and Revenue Practice Group,

Shearn Delamore & Co​

anand@shearndelamore.com