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Amended guidelines on deductions for secretarial fees and tax filing fees
The Inland Revenue Board (IRB) has published on its website amended guidelines dated 11 May 2021 on tax deductions for secretarial and tax filing fees. The guidelines are in Bahasa Malaysia and are titled “Pindaan Garis Panduan Potongan Bagi Perbelanjaan Berhubung Dengan Yuran Kesetiausahaan Dan Yuran Pemfailan Cukai Mulai Tahun Taksiran 2020” (Guidelines). The new 12-page Guidelines replace the earlier guidelines dated 18 September 2020 (see Tax Alert No. 17/2020).
The new Guidelines are broadly similar to the earlier guidelines. The Guidelines have been amended, however, to provide additional examples to demonstrate the methodology of ascertaining the total tax deduction for secretarial and tax filing fees for a specific year of assessment (YA) based on the application of both Rules outlined below:
- Income Tax (Deduction for Expenses in relation to Secretarial Fee and Tax Filing Fee) Rules 2014 [P.U.(A) 336/2014] which provide that expenses incurred on secretarial and tax filing fees are given a tax deduction of up to RM5,000 and RM10,000 respectively for each YA
- Income Tax (Deduction for Expenses in relation to Secretarial Fee and Tax Filing Fee) Rules 2020 [P.U.(A) 162/2020] which provide that expenses incurred on secretarial and tax filing fees are given a tax deduction of up to RM15,000 per YA (i.e. the tax deduction limit for both secretarial and tax filing fees are combined). These Rules revoke P.U.(A) 336/2014 and are effective from YA 2020.