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The Service Tax (Amendment) Act 2019 has been gazetted recently on 9 July 2019. The main highlight of the amendment act is the introduction of Digital Service Tax which is expected to take effect from 1 January 2020.

Following the 2019 Budget announcement, the Income Tax (Deduction for Employment of Senior Citizen, Ex-Convict, Parolee, Supervised Person and Ex-Drug Dependant) Rules 2019 has been gazetted to provide for further deduction to employer on remuneration paid to employee who is a senior citizen, ex-convict, parolee, supervised person and ex-drug dependant.

The Royal Malaysian Customs Department (RMCD) has issued guidance on reporting for sales tax exemption under Item 57 Schedule A, Sales Tax (Person Exempted from Payment of Tax) Order 2018.

Further to the Income Tax (Restriction on Deductibility of Interest) Rules 2019 covered in our Tax Alert dated 3 July 2019 to restrict the deduction of interest expense in connection with or on any financial assistance in a controlled transaction, also known as “ESR”, the Inland Revenue Board of Malaysia (“IRBM”) has recently issued Guidelines on Restriction on Deductibility of Interest to provide further guidance and clarification on the application of the abovementioned Rules and Section 140C of the Act.

Following the 2018 Budget announcement and pursuant to Section 140C of the Income Tax Act 1967 [“the Act”], the Income Tax (Restriction on Deductibility of Interest) Rules 2019 has recently been gazetted to restrict the deduction of interest expense in connection with or on any financial assistance in a controlled transaction, also known as “ESR”.

The Finance Act 2018 and various Orders were gazetted recently. Selected changes are highlighted below for your attention.

Indirect taxation is still evolving, and an arguable simple tax is growing in its complexity and application as a traditional goods and services model is replaced with digital content; virtual consumption and seamless international trade flows. But how can you stay ahead?.

Recap of the New Tax Reliefs / Increases in Tax Relief for Individuals for the Year of Assessment 2016.

Indirect taxation is becoming ever more complicated, varied between jurisdictions and prone to government tinkering. With some of the biggest tax reforms occurring within indirect tax, getting on top of the complexity and change is vital.

This special edition of MFRS Hot Topics explains the key features of the new Standard and provides practical insights into its application and impact.