IRB FAQ - International tax issues due to COVID-19 travel restrictions

01FAQ on International tax issues due to COVID-19 travel restrictions

02RESIDENCE STATUS IN MALAYSIA - INDIVIDUAL

1.       If you are an individual who is temporarily absent from Malaysia due to Covid-19 travel restriction.

03What is the consequences?

•       Not affecting your residence status in Malaysia. The period of temporary absence due to COVID-19 travel restrictions shall be taken to form part of your period or periods in Malaysia for the purpose of tax residence.

2.       If you are not a tax resident in Malaysia but temporarily present in Malaysia due to COVID-19 travel restrictions.

04What is the consequences?

·         Not affecting your tax residence in Malaysia. The period of temporary presence due to COVID-19 travel restrictions shall not be taken to form part of your period or periods in Malaysia for the purpose of tax residence.

05Notes:

*  You will need to keep relevant documents/records and information to prove your temporary absence in Malaysia is due to COVID-19 travel restrictions.

*  The movement control order period is from 18 March until 31 August 2020.

06RESIDENCE STATUS IN MALAYSIA - COMPANY

1.       My company is unable to convene a meeting of the Board of Directors (BOD) in Malaysia because of COVID19 travel restrictions.

07What is the consequences?

•       LHDNM is prepared to presume the company as tax resident provided its meets the following conditions:

a.       The company is a resident in the immediate previous year of assessment;

b.       The directors of the company have to attend the Board Of Director’s meeting held outside Malaysia (either physical meeting or electronic means).

2.       The company is not a residence in Malaysia, but convenes a Board Of Director’s meeting due to COVID-19 travel restrictions.

08What is the consequences?

•       Not a tax resident in Malaysia even your company required to hold the Board Of Director’s meeting in Malaysia due to COVID-19 travel restrictions.

09Notes:

*  The company should keep relevant documentations and records, such as BOD meeting minutes and travel documents.

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