Listed below are the Frequently Asked Questions (FAQs) provided by the Inland Revenue Board (IRB):
- FAQ listed on 2 June 2021, associated with administering of taxation matters during MCO 3.0 (Updated on 8 June 2021)
- FAQ regarding installment scheme (CP500) starting from 1-April-2021 to 31-December-2021 under PEMERKASA and deferment of payment of estimated tax payable (CP204)
Here, we have summarized the essential aspects of these FAQs.
FAQ Listed on 2 June 2021, Associated with Administering of Taxation Matters during MCO 3.0 (Updated on 8 June 2021)
A. Extension of Time and/or Considerations by the IRB
1. Time Extended for the Submission of Return Forms (RF)
The deadline for the submission of Form e-C for companies isn’t extended. As previously stated in the RF Filing Program, the grace period of 1 month is still the same for the year 2020 / 2021 and for the following companies.
On the contrary, other types of taxpayers who are doing a business that must submit the following types of return forms for the Assessment Year 2020; the deadline is extended by the IRB to 31 July 2021.
- Partnerships (Form e-P / P)
- Hindu Joint Family (Form TJ)
- Resident Individuals (Form e-B / B / e-BT / BT)
- Non-Resident Individuals (Form e-M / M / e-MT / MT)
- Deceased Person’s Estate (Form e-TP / TP)
- Associations (Form e-TF / TF)
2. Time Extended for the Submission of CP204A and CP500 Amendment Forms where the Due Date was in June 2021
The submission of amendment forms CP204A is extended until 31 July 2021. These forms include:
- Application form (CP502), used to amend installment payments for individual taxpayers
- Form (CP204A), used for the revision of estimated tax payable (6th and/or 9th month) of the assessment year
3. Time Extended for the Submission of CP204B and CP204 Forms where the due date was in June 2021
The extension until 31 July 2021 is granted for submitting these forms
- Form (CP204) for an estimate of tax payable
- Form (CP204B) used to notify the amendment made to the accounting period.
4. Time Extended for the Submission of Reporting (Country-by-Country) where the Last Date of Submission is within the MCO 3.0 Period
The taxpayer must submit an application to the Department of International Taxation in writing. The IRB will take into account the merits of every independent case.
5. Time Extended for the Submission of Documents Associated with Tax audit/Investigation
The taxpayer can submit the application via an e-mail or letter to the relevant IRB branch. The IRB will take into account the merits of every independent case.
6. Time Extended for the Submission of Notice of Appeal
If the taxpayers need an extension of time, it is essential to submit the prescribed Form N. By submitting this form, it is stated that the implementation of MCO 3.0 causes such delay.
The “Form N” should be submitted to the relevant branch of IRB, which will consider the merits of each case while deciding on an appeal.
7. Submitting the Form CP22 that was Due within the MCO 3.0 Period
The submission of such a form can be done via the Customer Feedback Form.
8. e-Residence Application
If the taxpayer is not able to take the advantage of Double Taxation Agreement through e-Residence, it is possible to send an email at firstname.lastname@example.org or make an appointment with the IRB.
9. Eligibility to File an Application to Obtain a Tax Clearance Letter during the MCO 3.0 period
The taxpayer can use any of these methods to file such an application:
- Customer Feedback System
- File an e-SPC
The RF can’t be submitted via e-Filing facility. Hence, the option of submitting the RF through appointment and post is available.
In order to start the process for SPC application, it is important to submit all the relevant documents to the IRB.
10. Time Extended for the Submission of Real Property Gains Tax (RPGT) (Previous Due Date Falls in June 2021)
The date for the submission of Real Property Gain Tax (RPGT) is extended until 31 July 2021. The decision of pending appeals regarding the penalties of RPGT should be finalized by considering the merits.
11. Time Extended for those Documents, which can’t be Stamped Under Stamp Duty during the Period of MCO 3.0.
The appeal submission limit is 30 days. This limitation period starts from the date of the documents. The IRB pays attention to merits and demerits for deciding the appeal.
12. Request for the Tax Installment Payments Rescheduling
This application must reach the IRB along with the supporting documents i.e. cash flow documents.
13. Appeal against Penalty
The IRB will stick to the merits of each case when considering the appeals on penalties. This fact was disclosed by the IRB through a press release issued on 3 June 2021.
B. Extension of Time not Granted by the IRB
Following are the types of payments, which fails to seek an extension of time by the IRB:
14. CP204 Tax Estimate Payments (Due in June 2021)
There is no extension of time for this payment and the taxpayer can utilize online payment services at ByrHASil.
15. Tax Installments Associated with Investigation and Tax Audit (Due in June 2021)
There is no extension of time and the taxpayer is advised to make payment online via ByrHASil.
16. Making MTD / CP38 payment and Submission of Monthly Tax Deduction (MTD) data (Due on 15 June 2021)
There is no extension of time and the taxpayer. The taxpayer can make online payment through various available services including e-Data PCB, e-CP39, and PCB.
17. Compound Payment Deferment (Payable in June 2021)
Extension of time isn’t available.
FAQ regarding installment scheme (CP500) starting from 1-April-2021 to 31-December-2021 under PEMERKASA and Deferment of Payment of estimated Tax Payable (CP204)
Deferment of income tax installment payments from 1 April 2021 until 31 December 2021 for businesses in the Tourism, Cinema, and Spa Industries
To IRB focuses on facilitating the cash flow of tax installment payments for businesses related to cinema, tourism, and spa industries. Hence, the IRB has deferred these payments which were due from 1 April 2021 to 31 December 2021.
The qualifying business codes are listed below:
Below, we have summarized other important points linked with this FAQ:
- The deferment of CP500 and CP204 payments will be awarded through an automatic procedure. This depends on the record of the Inland Revenue Board (IRB).
- The qualified taxpayers will receive a confirmation from the IRB via email.
- The IRB determines and analyzes that whether a particular taxpayer is eligible for the deferment. This process relies on the Business Code provided in the income tax returns (latest) submitted to the IRB.
- The deferred payments are exempted from tax penalties (Imposed under Section 107B (3)/ 107C (9) of the Income Tax Act 1967).
- The settlement of deferred payments for CP500/CP204 depends on the submission of the tax returns for that particular assessment year.
- Taxpayers that qualify for the deferment may opt to continue remitting the installment payments based on the original installments scheme without having to notify the IRB.
- The remitted payments related to the deferment period aren’t carried forward to the subsequent assessment year or post-deferment period.
- Revision of tax estimates is still allowed to be filed within the 6th and/or 9th months of the year of assessment (via Form e-CP 204A and CP502).
- Taxpayers can file an appeal if they don’t qualify for the deferment depending on the latest status of their businesses, which fall within the qualifying industries. The taxpayer can file an appeal by sending an email to the IRB at email@example.com or firstname.lastname@example.org.