The Covid-19 epidemic has caused for businesses to embrace digital transformation. The importance of cyber security grows with this change. Three out of five businesses in the Asia Pacific region have put off digitisation out of fear of cyber-attacks based on the Cyber Smart – Enabling APAC businesses report by Deloitte Access Economics. To dive deeper into the subject of cyber security, AMCHAM held its first virtual panel discussion on 2 June 2020. Industry experts from Carbon Black, Deloitte, VMware and MDEC were brought together to discuss the subject of cyber security and why it is relevant for businesses and governments have to adopt and adapt. Attendees got to learn more about security hygiene the adoption process of digitisation, and how the Malaysian Government is handling this transformation.
In 2019, Malaysia’s Prime Minister Tun Dr Mahathir Mohamad rolled out the National Anti-Corruption Plan (NACP) to address the growing world outcry against bribery and corruption. To fortify their anti-bribery management systems, proactive organisations are protecting themselves by establishing “adequate procedures” as a compliance defense in the event of a bribery accusation.
But what would warrant “adequate procedures”? Made famous through the UK Bribery Act of 2010, the term presents the potential of a company to avoid liability for failing to prevent bribery if that organisation can fully demonstrate clear, sound and established policies and procedures that deter individuals (inside and outside of the organisation) from partaking in questionable or corrupt conduct.
EY is pleased to share their Special Tax Alert No. 15/2020. This edition covers:
• Frequently Asked Questions on Tax matters during the Movement Control Order and the Conditional Movement Control Order period – updated on 29 May 2020
• Frequently Asked Questions on Special Tax Treatment to Financial Institutions in relation to moratorium granted to customer
• Stamp duty exemption on the instrument of loan or financing agreement relating to the restructuring or rescheduling of a business loan or financing executed between a borrower or customer and a financial institution
In view of the on-going Movement Control Order (“MCO”), the Royal Malaysian Customs Department (“RMCD”) announced on 29 May 2020 a deadline extension to 30 June 2020 for the full remission of penalties for specific indirect tax payments received by the RMCD. In addition, the RMCD informed that due to certain limitations, late payment penalties will continue to be automatically generated in the MySST system during the MCO period.
The salient points of the above-mentioned announcements are as follows:
- Extension of deadline for indirect tax payments
- Full remission of penalty for indirect tax payments
► RMCD has further extended the deadline for the full remission of penalty for indirect tax payments received by the RMCD to 30 June 2020, with respect to the following submissions:
► Sales tax or service tax (via Form SST-02)
► Imported taxable service tax (via Form SST-02A)
► Tourism tax (via Form TTx-03)
► Departure levy (via Form DL-02)
► Please be informed that the full remission of penalty applies exclusively to the following taxable periods:
| End of taxable period | Stipulated due date for the submission of return and payment of tax | Payment of tax received by RMCD no later than 30 June 2020 |
| 29 February 2020 | 31 March 2020 | Entitled to a full remission of penalty |
| 31 March 2020 | 30 April 2020 | Entitled to a full remission of penalty |
| 30 April 2020 | 31 May 2020 | Entitled to a full remission of penalty |
► Further to the above, RMCD encourages taxpayers to make payments online or through postal services.
- Submission of indirect tax returns
► RMCD has further clarified that no action will be taken for any late submissions of the above-mentioned indirect tax returns with respect to the taxable periods ending 29 February 2020, 31 March 2020 and 30 April 2020.
- Automatic generation of late payment penalties eligible for a full remission in the MySST system during the MCO period
- RMCD has clarified that late payment penalties for the following taxable periods will continue to be automatically generated in the MySST system, in a manner as shown in the table below:-
| End of taxable period | Due date to submit return and payment | Date of penalty generated |
| 29 February 2020 | 31 March 2020 | 1 April 2020 |
| 31 March 2020 | 30 April 2020 | 1 May 2020 |
| 30 April 2020 | 31 May 2020 | 1 June 2020 |
- A full remission for the above-mentioned late payment penalties will be made by the RMCD as soon as possible. This will also include any Bill of Demands (“BODs”) issued on penalties which are eligible for a full remission during the MCO period.
The full and complete version of the above announcement on the deadline extension for indirect tax payments (only available in Bahasa Malaysia at this juncture) can be found here, whilst the announcement on the automatic generation of late payment penalties eligible for a full remission in the MySST system during the MCO period can be found here.
The undersigned associations express our gratitude to governments around the world that have designated the semiconductor and microelectronics industry essential during their response to the COVID-19 pandemic, allowing continued operation of key manufacturing and operational functions within safety protocols. By designating semiconductor and microelectronics industry workers “essential,” governments have contributed significantly to the industry’s ability to continue to produce and deliver critical components for every nation’s essential infrastructure and life-critical equipment such as health care and medical devices, water systems and the energy grid, transportation and communication networks, and the financial system.
