Important Circular
Dear Value Clients and Associates
The following Public Rulings have been issued by the IRB recently:
|
Public Rulings |
Covers |
Date issued |
|
PR 11-2013 |
Pre-Operational Business Expenditure |
18 Nov 2013 |
|
PR 12-2013 |
Rescuing Contractor and Developer |
17 Dec 2013 |
|
Public Ruling 11-2013 – Pre-Operational Business Expenditure (Issued 18 Nov 2013) |
- Explains the deductions allowed for certain expenditure incurred prior to the commencement of a business.
- Replaces PR2-2010
- In summary, pre-commencement expenditure allowed include the following:
|
PR ref (Para.) |
Expenditure incurred |
w.e.f. YA |
Deducted in ascertaining |
Single or Double Deduction |
|
7 |
Pre-operational expenditure for approved business venture outside Malaysia |
1992 |
Total income |
Single |
|
8 |
Incorporation expenses |
2004 |
Adjusted income |
Single |
|
9 |
Expenditure on approved training |
1992 |
Adjusted income |
Double |
|
10 |
Pre-commencement business training expenses |
1996 |
Adjusted income |
Single |
|
11 |
Establishment expenditure of a Real Estate Investment Trust or Property Trust Fund |
2006 |
Adjusted income |
Single |
|
12 |
Establishment expenditure of an Islamic stock broking company |
From 2.9.2006 |
Adjusted income |
Single |
|
13 |
Pre-commencement business expenses relating to employee recruitment |
2009 |
Adjusted income |
Single |
|
14 |
Franchise fee paid prior to commencement of business |
2012 |
Adjusted income |
Single |
| Public Ruling 12-2013 – Rescuing Contractor and Developer (Issued 17 Dec 2013) |
- Explains the tax treatment of a rescuing contractor or developer, approved or appointed by the Ministry of Urban Health, Housing and Local Government or Liquidator to revive an abandoned project.
- Relates to the following legislations:
- Section 33, subsections 43(2) and 44(2) and Schedule 3 of the Income Tax Act (ITA) 1967,
- Income Tax (Deduction For Expenses In Relation To Interest And Incidental Cost In Acquiring Loan For Abandoned Projects) Rules 2013 [P.U. (A) 89/2013], and
- Stamp Duty (Exemption) (No. 6) Order 2013 [P.U. (A) 92/2013].
- Special deductions are allowed to the rescuing contractor/developer in reviving the approved abandoned project.
|
Note: Relevant explanatory notes are extracted from technical alerts issued by the Chartered Tax Institute of Taxation PDF copies of the above Public Rulings are attached for your kind attention and reference. Please do not hesitate to contact us should you require clarifications on the above. |
19 February 2014