Tax Deductible Expenses – Principles and Latest Developments

COURSE OUTLINE

1. Conditions of Deductibility

• Wholly and exclusively

• Revenue in nature

• In the production of gross income

• Incurred

2. Specific Deductions

• Interest expense (Public Ruling 2/2011)

• Rental expense

• Repairs and renewals (Public Ruling 6/2019)

• Bad and doubtful debts (Public Ruling 4/2019)

  – Bad debt written off

  – Specific provision for doubtful debts

• Employers’ contributions to approved funds

• Losses due to theft, embezzlement or misappropriation (Public Ruling 4/2012)

• Legal and professional expenses (Public Ruling 6/2006)

  – Secretarial and tax filing fee

  – Cost of tax appeal

3. Miscellaneous expenses

• Redundancy payments

• Pre-commencement expenses

4. Prohibited deductions

• Leave passage

• Restriction on lease rental

• Entertainment expenses

• Non-compliance with withholding tax

• Private expenses

5. Entertainment Expenses (Public Ruling 4/2015)

• Entertainment provided to employees

• Entertainment provided to customers

• Promotional gifts

6. Special and double deductions in recent Budget

7. Latest tax cases concerning tax deductible expenses

PROFILE(s)

Chow Chee Yen is currently the President of the Chartered Tax Institute of Malaysia (CTIM) and the Senior Executive Director of Grant Thornton Malaysia. He has more than 30 years of tax experience and was involved in tax engagements concerning cross-border transactions, tax diligence review, restructuring schemes, corporate tax planning, group tax review, inbound investments, and good and services tax (GST). Chee Yen’s expertise is in high demand and he is a prolific trainer/facilitator for tax workshops and seminars organised by professional bodies in Malaysia. In addition, he conducts in-house training for a government ministry, professional firms, and corporations as well as guest speaker for national and international conferences. He is a Fellow Member of The Association of Chartered Certified Accountants (FCCA) and a Chartered Accountant of the Malaysian Institute of Accountants (CA).