Changes of Form C Year Assessment 2022

(Update) Changes of Form C Year Assessment 2022

1. Income from the source of business(es) and partnership(s) outside Malaysia received in Malaysia effective from 01.07.2022 – Item A2, A7, A20

Aggregate statutory income from sources of business(es) and partnership(s) outside Malaysia received in Malaysia effective from 01.07.2022

Effective from 1 January 2022, the exemption given to Malaysian residents on income from sources outside Malaysia received in Malaysia under paragraph 28, Schedule 6, ITA 1967 has been withdrawn. Income from sources outside Malaysia which is remitted to Malaysia by a resident whether active or passive other than from sources arising from operations carried on in Malaysia, is subject to income tax.

Special guidelines related to tax treatment for income from sources outside Malaysia received in Malaysia will be published on the IRBM Official Portal.

This item must be filled in by a resident company that remits business and/or partnership income from sources outside Malaysia to Malaysia effective from 1 July 2022.

2. Apportionment of Chargeable – Item B2a – B2g

Cukai Makmur – 33% - Companies with taxable income exceeding RM100 million for the basis period for the year of assessment 2022 other than companies subject to the tax rate under paragraph 2A of Part I of Schedule 1.

3. Particulars of Schedule 7A allowance – Item C3 & C4

The company is eligible to claim RA PENJANA and extension of RA PENJANA if it incurred an eligible expenditure during the Year of Assessment 2020 to 2024 in accordance with the provisions of paragraphs 2B and 4C of Schedule 7A of ITA 1967.

Eligible expenditure incurred in the Year of Assessment 2019 (if any) is not entitled for RA in Year of Assessment 2019.

Nevertheless, a separate calculation needs to be made between the RA PENJANA and the ordinary / extension of RA ending in the Year of Assessment 2018. The calculation of the seven (7) year restriction of unabsorbed RA PENJANA will commence in the Year of Assessment 2025 and will end in the Year of Assessment 2031. Balance of unabsorbed RA PENJANA will be disregarded from the Year of Assessment 2032.

4. CLAIM FOR LOSSES – Part E

From 7 consecutive years to 10 consecutive years.

With effect from the Year of Assessment 2019, unabsorbed current year losses are only allowed for carrying forward to be absorbed for a maximum period of up to ten (10) consecutive years [Subsection 44(5F)].

5. Carries out controlled transactions under sections 139 and 140A – Item F8

More information need to fill in
 

6. Made payments in the basis period which are subject to withholding tax under sections 107A, 107D, 109, 109A, 109B, 109E, 109F and 109G – Item G2

Tax deduction of 2% under section 107D - Payments made in cash by the paying company to appointed agents, dealers or distributors who are resident individuals.

Withholding tax rate:

Tax deductions at a rate of 2% is applicable for payment made in the form of cash to agents, distributors or distributors in the current year.

Such tax deduction is only applicable if the total amount of payment, whether in cash or non-cash, made by the paying company to the agents, dealers or distributors in the previous year exceeds RM100,000.

7. Carry on e-Commerce – Item G4a

A company is considered to be engaged in e-commerce business if the business operations are included in the e-commerce business model as in the table below.

This business model is a general guide for taxpayers.

For more information, please refer to the Guidelines on Taxation of Electronic Commerce Transactions dated 13th May 2019

guidelines_e_commerce_13052019.pdf (hasil.gov.my)

8. Website / social media address – Item G4b

Previously mention “Website/blog address (if any). Now change to “address of the website / social media that is used to conduct the business (if any)”.

9. Particulars of auditors – Item Part H

Income tax no. of the firm - Income tax number of the audit firm as registered with IRBM.

10. Particulars of the Tax Agent and signature of the person who completes this return form.

Income tax no. of the firm - Income tax number of the tax agent’s firm as registered with IRBM..

11. Declaration - Amendments in the declaration

If this return form is prepared based on the liquidator’s account in accordance with the requirements under the Companies Act 2016 (If item 6 = 3), fill in ‘3’ in the relevant box.