Further Development on Amendments Proposed in Finance Bill 2021 and Return Form Filing Programme Further Development on Amendments Proposed in Finance Bill 2021 and Return Form Filing Programme Further Development on Amendments Proposed in Finance Bill 2021 and Return Form Filing Programme

The Finance Bill 2021 has been passed by both houses of Parliament, but pending for the gazetting of the Finance Act 2021.

Nevertheless, the Ministry of Finance (“MOF”) has, on 30 December 2021, issued a media release to announce the following:

a) Certain exemptions be given on foreign source income received by resident persons in Malaysia effective 1 January 2022

Subject to conditions, which will be detailed out in the guidelines from the Malaysian Inland Revenue Board (“MIRB”), the following foreign source income received in Malaysia from 1 January 2022 to 31 December 2026 will remain exempt from Malaysian income tax:

b) Exclusion of foreign source income received in Malaysia in the year of assessment (“YA”) 2022 from the computation of tax for the purpose of Cukai Makmur

c) Remission of stamp duty on contract notes for transfer of shares listed on Bursa Malaysia

In the Finance Bill 2021, the stamp duty rate on contract notes for transfers of listed shares is proposed to be increased from 0.1% to 0.15% (RM1.50 for every RM1,000 or fractional part of RM1,000) and the stamp duty cap of RM200 is to be removed, effective from 1 January 2022.

The MOF will reinstate the stamp duty cap but at a higher cap of RM1,000. Stamp duty payable from 1 January 2022 to 31 December 2026 in respect of transfers of shares listed on Bursa Malaysia, which is in excess of RM1,000 will be remitted.  This is subject to gazetting of the relevant statutory order.

The MIRB has issued its return form filing programme for the year 2022.  Amongst others, the key points to note are:-

1. For Forms BE, B, BT, M, MT, P, TP, TJ and TF for YA 2021, a grace period of: 

(a)   15 days is granted for e-filing (not applicable for Form TJ); and

(b)   3 working days is granted for filings made by post.

There is no grace period for filings made by hand.

2. For Form E for the Year of Remuneration 2021, a grace period of: 

(a)   one month is granted for e-filing; 

(b)   3 working days is granted for filings made by post; and

(c)   no grace period for filings made by hand.

No manual filing is allowed for companies including Labuan companies.

3. For Forms C, C1, PT, TA, TC, TR and TN for the YA 2022, a grace period of: 

(a)   one month is granted for e-filing (not applicable for Forms TR and TN);

(b)   3 working days is granted for filings made by post and no grace period for filings made by hand for Form C1, TA, TC, TR and TN; and 

(c)   no manual filing is allowed for Form C and PT.

4. For Form CPP for the YA 2021 as well as Form CPE, a grace period of:

(a)   one month is granted for e-filing; and

(b)   3 working days is granted for filings made by post.

There is no grace period for filings made by hand.

5. The above grace periods also apply to the payment of the balance of tax due (except Form E, Form P and Form CPE) furnished via e-Filing or postal delivery.

6. For assessments raised under section 90(3), 91, 92, 96A and 101(2) of the Income Tax Act 1967, the tax or balance of tax must be paid within 30 days from the date of assessment. Nevertheless, a grace period of 7 days is given.

The MOF’s media release and MIRB’s return form filing programme can be accessed via the above links.