Tax Deduction on Tax and Secretarial Fee 2022

With the gazette of The Income Tax (Deduction for Expenses in relation to Secretarial Fee and Tax Filing Fee (Amendment Rules 2021), we are pleased to highlight the changes.

T&C apply.

Key summary of the special tax deduction of tax and secretarial fee

1. The secretarial fee and tax filing fee are deductible in the Year of Assessment when the fees are incurred (the words “and paid” are deleted in the 2021 Rules) with effect from the Year of Assessment 2022.

2. Secretarial and tax filing fees for YA 2020 and 2021 are only tax-deductible when the fees are incurred and paid.

Secretarial Fee

Secretarial fee charged in respect of secretarial services to comply with the statutory requirements under the Companies Act 2016 is deductible.

1. Lodgement of annual return and Financial statements. 

2. Change of name 

3. Add or delete business activities 

4. Retainer fees 

5. Issuance or transfer of shares

6. Update register of members and directors 

7. Appointment of director or auditor

General secretary charges NOT deductible: 

1. Incorporation fee for new company (include professional fees) 

2. Fee for acquisition of shelf company (include professional fees) 

3. Name search fee to SSM (include professional fees)

4. Preparation of registration documents

5. Company profile printout from SSM 

6. Professional fee for preparation of ordinary/ special resolution 

7. Professional fee for preparation of other resolution, confirmation letter to bank or solicitor

8. Professional fees for preparation of trust deed 

9. Preparation fees for CTC documents 

10. Attestation fees for commissioner for Oaths

Tax Filing Fee

A tax agent approved under the Income Tax Act 1967 (Not ACCA member, MIA member, accounting graduate, ex-tax staff..)

1. Preparation and submission of income tax returns

2. Estimate of tax payables

A person in respect of services provided for the preparation and submission of returns in the prescribed form for the purposes of:

1. Section 26 of the Sales Tax Act 2018 

2. Section 26 of the Service Tax Act 2018

3. Section 19 of the Departure Levy Act 2019; 

4. Section 19 of the Tourism Tax Act 2017

Read our past blog on the special tax deduction on secretarial and tax filing fee :

1. Tax and Secretarial Fee Tax Deduction Malaysia 2020 dated on 31.12.2020

https://www.ktp.com.my/blog/sectaxfee/31dec2020

2. Discover the latest update on tax deductibility for secretarial and tax fee from IRB guideline dated on 2.10.2020

https://www.ktp.com.my/blog/fwwses3ezyrg9gf-7r8xl-aaa5d-739bg-8lcep-c266s-s32bd-wf736-e4xsk-x3fp4-gj5z8-mwgzk-m3696-gw4b5-mmmbe-2nfz4-wxwag-s27pr-ldnya-zkdxr-2flme-xmbx6-n7fdm

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