On the 29th of July 2022, Inland Revenue Board “IRB”: has issued Public Ruling No.2/2022 on Tax Incentive for Organizing Conferences in Malaysia.
Eligibility for Tax Incentive
Conference promoter promoting and organising conferences in Malaysia as its main activity and
Qualifying person whose main activities are other than promoting and organising conferences in Malaysia
There are two relevant tax exemptions under this Public Ruling which are:
1. Income Tax (Exemption) (No.53) Order 2000 [P.U. (A) 500/2000], and
2. Income Tax (Exemption) (No.4) Order 2021 [P.U. (A) 195/2021]
Income Tax (Exemption) (No.53) Order 2000 [P.U. (A) 500/2000]
a) Eligibility of a Conference Promoter
A conference promoter must be:
A company incorporated under the Companies Act, 2016 or
an association or organization registered under the Societies Act 1966; and
a resident in Malaysia whose main activities are in promoting and organizing conferences in Malaysia including the arranging of accommodation, tours and sightseeing for foreign participants.
b) Tax exemption for an eligible conference promoter:
brought in at least five hundred (500) foreign participants to attend conferences held in Malaysia in the basis year for a year of assessment; and
the exemption is on 100% of the statutory income derived from organising conferences held in Malaysia in the relevant year of assessment.
c) Period of exemption
Effective from the year of assessment 1997 onwards
d) Statutory income derived from organizing conferences held in Malaysia
This includes fees and other payments received by a company, an association or an organization in performing its duties as conference promoter less allowable expenses for tax purposes and capital allowances, if any.
Definitions: · Qualifying person: A company incorporated under the Companies Act, 2016 or an association or an organization registered under the Societies Act 1966 which carries on business or activity other than business or activity of promoting and organizing conferences. · Conference promoter: A company incorporated under the Companies Act, 2016 or an association or organization registered under the Societies Act, 1966 performing the duties of promoting and organizing conferences including the arranging of accommodation, tours and sightseeing for foreign participants. |
Income Tax (Exemption) (No.4) Order 2021 [P.U. (A) 195/2021]
a) Eligibility of a Conference Promoter
*Same as Income Tax (Exemption) (No.53) Order 2000 [P.U. (A) 500/2000]
b) Tax exemption for an eligible conference promoter:
*Same as Income Tax (Exemption) (No.53) Order 2000 [P.U. (A) 500/2000]
c) Period of exemption
Effective from the year of assessment 2020 until the year of assessment 2025.
d) Statutory income derived from organizing conferences held in Malaysia
*Same as Income Tax (Exemption) (No.53) Order 2000 [P.U. (A) 500/2000]
Source: Public Ruling No.2/2022 Tax Incentive for Organizing Conferences in Malaysia
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