Crowe Chat Vol.4/2023
Tax
Welcome to our Crowe Chat Vol.4/2023. In this issue, we will cover the following topics:
- Finance Act 2023 Gazetted
- Guideline for the Application of Tax Deduction for Contributions to Smart Artificial Intelligence (AI)-Driven Reverse Vending Machine (RVM)
- Media Release on Inland Revenue Board of Malaysia (IRBM) No Longer Accepting Payments by Cheques and Money Orders/Postal Orders (MOPO)
- An Article on Capital Allowance (CA) Maximisation
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Finance Act 2023 Gazetted
The Finance Act 2023 has been gazetted on 31 May 2023.
There are no material changes in the Finance Act 2023 as compared to the Finance Bill 2023 which was passed at the Dewan Negara on 10 April 2023.
The Finance Act 2023 comes into operation on 1 June 2023.
Guideline for the Application of Tax Deduction for Contributions to Smart AI-Driven RVM
It was proposed in the 2023 Budget that tax deduction be given to companies, individuals, partnerships, trusts and cooperatives with business income that made donations or sponsorships to AI-driven RVM. This is in line with Malaysia’s Plastic Sustainability Roadmap 2021 to 2030 by encouraging the public to make donations or sponsorships to the development of AI-driven RVM. The development of AI-driven RVM can help to support the recycling of plastic waste as an economic resource and to ensure that the collected-for-recycling rate can be increased through a more effective and organised plastic waste collection programme.
New Guideline
Details of the new Guideline
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Type of contribution eligible |
Cash or financing for the smart vending machine which incorporated the elements of smart AI |
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Eligible applicants |
Companies, individuals, partnerships, trusts and cooperatives with business income |
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Supporting documents to verify the contribution |
•Official receipt; or
•Acceptance letter of contribution; or
•Financing agreement letter (stating the duration, location and serial number of the machine)
•Verification of the value of cash / equipment / services from the Ministry of Natural Resources, Environment and Climate Change together with the official stamp (using the format in Lampiran I and II of the Guideline)
•
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Effective period |
Contributions / sponsorships made and applications received by MOF from 1 April 2023 to 31 December 2024 |
Media Release on IRBM No Longer Accepting Payments by Cheques and Money Orders/Postal Orders (MOPO)
The IRBM has recently issued a Media Release (available in the Malay language only) to inform that they are no longer accepting cheques and MOPO for direct tax payments at all its receipt management centres (PPTH), stamp duty payment counters, and collection agents. The effective dates for this change are as follows:
|
No. |
Receipt Management Centres(PPTH) |
Type of Instruments |
Effective Date |
|
1. |
PPTHKuala Lumpur, Kuching and Kota Kinabalu |
Cheques / MOPO |
1 August 2023 |
|
2. |
Collection Agents: |
||
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CIMB Bank |
Cheques |
1 August 2023 |
|
|
Maybank Berhad |
Cheques |
1 June 2023 |
|
|
Public Bank Berhad |
Cheques |
1 June 2023 |
|
|
3. |
Post Office |
MOPO |
1 August 2023 |
|
4. |
Stamp Duty Payment Counters |
Cheques / MOPO |
1 July 2023 |
Details of the Media Release
This new implementation affects all direct tax payments EXCEPT for:
- advance payments and instalments for audit, investigation and civil law cases using cheques/post-dated cheques submitted to the IRBM before 1 August 2023; and
- payment of the 2% tax deduction to an agent, dealer, or distributor under Section 107D of the Malaysian Income Tax Act, 1967 (MITA)
After 1 August 2023, direct tax payments at the PPTH and collection agents using bill number or Tax Identification Number (TIN) can be made via bank draft or cash.
Payment for stamp duty at the satellite offices or state stamp offices after 1 July 2023 can only be made using bank drafts.
Featured Article
Learn the basics of CA, industrial building allowance (“IBA”), objectives and effects in maximising the CA of a business
