Updates to IRB’s FAQs on Tax Matters during the MCO 3.0

Updates to IRB’s FAQs on Tax Matters during the Movement Control Order (MCO) 3.0

The Inland Revenue Board (IRB) has published on its website an updated version of the document titled “Frequently Asked Questions on Tax Matters during the Movement Control Order (MCO) 3.0” (FAQs). The updated document is dated 26 June 2021.

The changes to the FAQs as well as certain updates provided by the IRB have been indicated in italics in the full version of the latest FAQs set out in the Appendix to this Alert. One of the key changes is the extension of time (EOT) granted for the following:

(a)   Return forms for companies, limited liability partnerships (LLPs), unit trusts or property trusts, co-operative societies, trust bodies, real estate investment trusts (REITs) or property trust funds (PTFs) and business trusts with accounting periods ending between 1 October 2020 and 31 January 2021, for YA 2020 or YA 2021 (as the case may be)

• Two-month extension (from the statutory due date)

(b) Petroleum income tax return forms with accounting periods ending between 1 October 2020 and 31 January 2021, for YA 2020 or YA 2021 (as the case may be):

• Two-month extension (from the statutory due date)

(c) Return forms for taxpayers carrying on a business involving individuals, resident individuals (knowledge or expert workers), non-resident individuals, non-resident individuals (knowledge or expert workers), partnerships, associations, deceased persons’ estate and Hindu Joint Families for YA 2020

•  EOT will be given until 31 August 2021 (previously 31 July 2021)

In addition, we understand from a communication from the IRB to the professional tax and accounting bodies that the following EOTs will be given pertaining to Labuan-related tax matters:

(a) Submission of the irrevocable election form to be taxed under the ITA (Form LE3) where the due date falls on 30 June 2021 (for companies with a 31 March 2021 financial year end for the YA 2022 under the Labuan Business Activity Tax Act 1990 (LBATA))

• An EOT will be given until 31 July 2021

(b) Submission of returns under the LBATA (Forms LE1, LE4 and LE5) for YA 2021

• An EOT was previously given until 31 August 2021, subject to conditions

(c) Submission of returns under the ITA for a Labuan entity carrying on “other trading activities” for YA 2019 and YA 2020 (accounting period up to 31 October 2020), subject to conditions

• An EOT was previously given until 30 June 2021, subject to conditions
•  Affected taxpayers who are unable to furnish the return by the deadline may apply for a further EOT to the IRB’s Labuan branch

The FAQs are also available in the following link:

Frequently Asked Questions on Tax Matters during the Movement Control Order (MCO) 3.0