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This Ruling explains: (i) the deductibility of interest expense in computing the adjusted income of a person from a source for the basis period for a year of assessment under paragraph 33(1)(a) of the Income Tax Act 1967 (ITA); (ii) restriction on the amount of interest expense deductible against gross business income under subsection 33(2)…

The Inland Revenue Board (IRB) has issued Public Ruling No. 4/2011: Income from Letting of Real Property. This PR, which supersedes PR No. 1/2004 issued on 30 June 2004, provides clarification on: i) letting of real property as a business source under paragraph 4(a) of the Income Tax Act 1967 (ITA); and ii) letting of…

Withholding tax means an amount, representing the tax portion of an income of a non-resident recipient, withheld by the payer in Malaysia, and paid directly to the Inland Revenue Board of Malaysia (“IRB”). The words used have the following meaning: “Tax portion of income“:  Specific tax rate for specific purpose of such income. “Non-resident recipient“:  In simple term, these are…

With effect from 1 January 2014, for companies and individuals who are Malaysian citizens and permanent residents, a Real Property Gains Tax (“RPGT”) rate of 30% will be imposed for a holding period of real property of up to 3 years, 20% for a holding period exceeding 3 years and up to 4 years and 15% for a…

The Inland Revenue Board (IRB) has replaced the Public Ruling (PR) No. 3/2011: Investment Holding Company by inserting additional explanations to paragraph 10: Capital Allowance/ Industrial Building Allowance and the eligibility to claim against rental income. The above New Public Ruling can be viewed and downloaded from the IRB’s website at the following link: http://www.hasil.gov.my/pdf/pdfam/PR3_2011.pdf