stock written off tax deductible

01Stock written off tax deductible

02Issue

Whether the stock written off need to add back in tax computation? in what circumstances have to add back?

03Fact

According to PR 2/2020, this ruling explains that if it is an actual write-off of stock in trade, then it is deductible. If it is just a provision for obsolescence of stock in trade, it will need to add back to tax computation.

04Tax opinion

If it is an actual write-off of stock in trade that is charged to the profit and loss account is allowable for tax-deductible. If it is a provision for obsolescence of stock in trade, it will need to add back in tax computation.

05Source

Public Ruling 2/2020 tax treatment of stock in trade part 1 – valuation of stock

https://phl.hasil.gov.my/pdf/pdfam%20PR_02_2020.pdf

Visit Us

• Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
• Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

• Website www.ktp.com.my
• Instagram https://bit.ly/3jZuZuI
• Linkedin https://bit.ly/3sapf4l
• Telegram http://bit.ly/3ptmlpn

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

• Website www.thks.com.my
• Facebook https://bit.ly/3nQ98rs

KTP Lifestyle

An internal community for our colleagues on work and leisure.

• Tiktok http://bit.ly/3u9LR6Q
• Youtube http://bit.ly/3ppmjyE
• Facebook http://bit.ly/3ateoMz
• Instagram https://bit.ly/3jZpKLo

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

• Instagram https://bit.ly/3u2PxHg
• Facebook http://bit.ly/3rPxz9o

#Ktp #Thks