Federal Government Gazette - Deduction for Expenses in Relation to Secretarial Fee and Tax Filing

The Income Tax (Deduction for Expenses in Relation to Secretarial Fee and Tax Filing Fee) Rules 2020 which were gazetted on 19 May 2020 provides that a resident person is eligible for deduction claim on qualifying secretarial and tax filing fees incurred and paid on the basis period for a year of assessment (YA) 2020 onwards up to a maximum deduction of RM15,000 per YA from YA 2020 onwards. Whereas under the Income Tax (Deduction for Expenses in relation to Secretarial Fee and Tax Filing Fee) Rules 2014 [P.U. (A) 336/2014], the maximum deduction claims on qualifying secretarial and tax filing fees incurred for each YA 2014 onwards were RM5,000 and RM10,000 respectively.

The Income Tax (Deduction for Expenses in Relation to Secretarial Fee and Tax Filing Fee) (Amendment) Rules 2021 (Amendment Rules 2021) which were gazetted on 24 December 2021 provides that the deduction is now accorded in the YA the qualifying fee is incurred, regardless of whether the fee is paid. The Amendment Rules 2021 are only applicable to fees incurred from YA 2022 onwards. Hence, any qualifying fees incurred in the basis period for YA 2020 and YA2021, shall be paid before a deduction is allowed.

Please click on the following for further details:

• Income Tax (Deduction for Expenses in Relation to Secretarial Fee and Tax Filing Fee) (Amendment) Rules 2021
• Income Tax (Deduction for Expenses in Relation to Secretarial Fee and Tax Filing Fee) Rules 2020
• Income Tax (Deduction For Expenses In Relation To Secretarial Fee And Tax Filing Fee ) Rules 2014