With reference to our previous email on Practice Note 3/2020 - Clarification on Gross Income from Business Sources, we would like to highlight to you the following update of the newly issued Practice Note 4/2020 by MIRB which has replaced Practice Note 3/2020.
Practice Note 4/2020 covers the additional requirements (effective from YA 2020) besides having a gross business income not exceeding RM50 million from the manufacturing, trading or service activities and a paid up capital of up to RM2.5 million, to be eligible for the preferential tax treatment (i.e. 17% tax rate for the first RM600,000 chargeable income).
The key changes affected by the issuance of Practice Note 4/2020 as follows:
Below is the summary for the clarification on gross income from business sources.
** The Company/LLP with gross business income not exceeding RM50 million from manufacturing, trading or service activities, and a paid up capital of up to RM2.5 million.
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This material or communication has been prepared for the sole purpose of providing general information to our clients, and is not intended to be relied upon as accounting, tax or other professional advice. Consent has to be obtained from the firm prior to any act of republishing or circulating to the general public. While the information is considered correct at the date of publication, changes in circumstances or updates in tax ruling after the time of publication may impact its accuracy and reliability. We have not, by means of this material or communication, rendered any professional advice or services. Thus, we shall not be responsible for any losses sustained by any person who relies on this material or communication. Please refer to our tax advisors should you require our consultancy services.
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