Frequently Asked Questions Issued by Inland Revenue Board

The Inland Revenue Board (IRB) has recently issued the following frequently asked questions (FAQ):

• FAQ on 2 June 2021 in relation to the administration of taxation matters during the MCO 3.0 (Updated on 8 June 2021); and
• FAQ on deferment of payment of estimated tax payable (CP204) and instalment scheme (CP500) from 1 April 2021 to 31 December 2021 under PEMERKASA.

We summarise below the key points in the FAQs.

FAQ on 2 June 2021 in relation to the administration of taxation matters during the MCO 3.0 (Updated as at 8 June 2021)

A. Extension of time granted by the IRB and/or consideration given by IRB

1. Extension of time for submission of income tax return forms (RF)

For the submission deadline of Form e-C for companies, no further extension of time is granted. The grace period of 1 month remains as stated in the previously issued RF Filing Programme for the year 2020 / 2021, as illustrated below: -

However, for other classes of taxpayers carrying on a business that are required to submit the following types of RFs for the Year of Assessment 2020, IRB has extended the deadline to 31 July 2021: -

• Resident Individuals (Form e-B / B / e-BT / BT)
• Partnerships (Form e-P / P)
• Non-Resident Individuals (Form e-M / M / e-MT / MT)
• Associations (Form e-TF / TF)
• Deceased Person’s Estate (Form e-TP / TP)
• Hindu Joint Family (Form TJ)

2. Extension of time for submission of CP500 and CP204 amendment forms where the due date falls in June 2021 

Extension of time is granted until 31 July 2021 for the submission of: -

• Application form for amendment to instalment payments (CP502) for individual taxpayers carrying on business; and
• Form for revision of estimated tax payable in the 6^th and/or 9^th month of the basis period for a year of assessment (CP204A) for Companies.

3. Extension of time for submission of CP204 and CP204B forms where the due date falls in June 2021 

Extension of time is granted until 31 July 2021 for the submission of: -

• Form for estimate of tax payable (CP204); and
• Form for notification of change of accounting period (CP204B), which is submitted via post or courier.

4. Extension of time for submission of Country-by-Country Reporting where the due date falls within the MCO 3.0 period

The application can be submitted in writing to the Department of International Taxation and the IRB will consider the appeal based on the merits of each case.

5. Extension of time for submission of documents in relation to tax audit/investigation or feedback to IRB’s letters within the MCO 3.0 period 

The application can be submitted by letter or e-mail to the IRB branch which handles the taxpayer’s case and the IRB will consider the appeal based on the merits of each case.

6. Extension of time for submission of Notice of Appeal to the Special Commissioners of Income Tax (SCIT) [Form Q] where the due date falls within MCO 3.0 period

Taxpayers which require the extension of time are required to file the prescribed Form N and state that the delay is due to the implementation of MCO 3.0.

The Form N can be submitted to the IRB branch which handles the taxpayer’s case and the IRB will consider the appeal based on the merits of each case.

7. Submission of Form CP22 due within the MCO 3.0 period

The form can be submitted through Customer Feedback Form at the link.

8. Application for e-Residence

If the e-Residence cannot be used as supporting documents for the taxpayer to enjoy the benefit of the Double Taxation Agreement, the taxpayer may make an appointment with the IRB or email to [email protected].

Further information can be obtained from this link.

9. Application for tax clearance letter (SPC) be made during the MCO 3.0 period

The application can be made through the following methods:

1. e-SPC at any time; or
2. Customer Feedback System at the link.

For the submission of RF which does not have the e-Filing facility, the form can be submitted by post or appointment only.

The application for SPC will only be processed after the IRB received complete documents and information.

10. Extension of time for submission of Real Property Gains Tax (RPGT) return forms where the due date falls in June 2021 

Extension of time is granted until 31 July 2021.

The IRB will also consider appeals on RPGT penalties based on the merits of each case.

11. Extension of time for documents that are unable to be stamped for Stamp Duty during the MCO 3.0 period

The appeal must be made within 30 days from the date of the documents and the IRB will consider the appeal (including any penalty thereof) based on the merits of each case.

12. Rescheduling of tax instalment payments

The application can be submitted to IRB together with supporting documents such as cash flow documents for IRB’s further consideration.

13. Appeal on penalty

The IRB will consider appeals on penalties based on the merits of each case.

The IRB has issued a media statement on 3 June 2021 in relation to the above. Kindly refer to our eNewsletter no. 8/2021 for further information.

B. Extension of time not granted by the IRB

The IRB has not granted extension of time for the following types of payments: -

14. CP204 tax estimate payments which are due in June 2021

No extension of time is granted. Taxpayer can make payment via online services at ByrHASil.

15. Tax instalments relating to tax audit and investigation which are due in June 2021

No extension of time is granted. Taxpayer can make payment via online services at ByrHASil.

16. Submitting Monthly Tax Deduction (MTD) data and make MTD / CP38 payment which are due on 15 June 2021

No extension of time is granted. Taxpayer can make payment via online services at e-PCB, e-Data PCB and e-CP39.

17. Deferment for compound payment which should be paid in June 2021

No extension of time is granted.

FAQ on deferment of payment of estimated tax payable (CP204) and instalment scheme (CP500) from 1 April 2021 to 31 December 2021 under PEMERKASA

1. Deferment of income tax instalment payments from 1 April 2021 until 31 December 2021 for businesses in the tourism, cinema and spa industries

To ease cash flow for businesses in the tourism, cinema and spa industries, income tax instalment payments due from 1 April 2021 to 31 December 2021 are deferred by the IRB.

The qualifying business codes are as follows:

We summarize below the other pertinent points from the FAQ:

• The deferment of CP204 and CP500 payments will be given automatically based on the IRB’s records.
• The IRB determines whether the taxpayer qualifies for the deferment based on the Business Code stated in its latest income tax return form received by the IRB.
• Taxpayers that qualify for the deferment will be notified via email registered with the IRB. If no email is received from the IRB, the taxpayer may defer the instalments payment as long its business falls under the qualifying industries.
• The deferred payments for CP204 / CP500 are to be settled upon the submission of the income tax return for that Year of Assessment, if there is any balance of tax payable.
• No tax penalties will be imposed under Section 107C (9) / 107B (3) of the Income Tax Act 1967 in relation to the deferred payments.
• Taxpayers that qualify for the deferment may opt to continue remitting the instalment payments based on the original instalments scheme without having to notify the IRB.
• Payments remitted during the deferment period are not allowed to be carried forward to the post-deferment period or the subsequent Year of Assessment.
• Revision of tax estimates in the 6^th and/or 9^th months of the basis period in a year of assessment via Form e-CP 204A (for companies) and revision of tax estimates on or before 30 June 2021 via Form CP502 (for other classes of taxpayers carrying on a business) are still allowed to be filed.
• Taxpayers may make an appeal if they qualify for the deferment based on the current status of their businesses that falls under the qualifying industries. The appeal can be sent to the IRB via email at [email protected] or [email protected].