Tax Espresso - November 2015

Greetings from Deloitte Malaysia Tax Services

Key changes under the Finance Bill 2015 that may impact your tax position (including estimate of tax payable)

The Finance Bill 2015 has proposed several amendments to the Income Tax Act 1967 (ITA) which may have an impact on your tax position (including the estimate or revised estimate of tax payable). Some of the major amendments are as follows:

Debt arising from services to be rendered or use of property to be dealt with

Section 24(1) of the ITA is to be amended to take effect from year of assessment (YA) 2016 whereby a debt will be treated as gross income in the basis period the debt arises although the services are to be rendered or the use of property is to be dealt with in the future basis period. The calculation of estimate of tax payable for YA 2016 onwards should include such debts, if any.