The Inland Revenue Board (IRB) has published the following public rulings (PRs) dated 23 November 2016:

    • Industrial Buildings Part I (PR No 8/2016).

    • Gratuity (PR No 9/2016).

Industrial Buildings Part I (PR No 8/2016)

The PR explains the types of buildings that qualify as industrial buildings and the corresponding rates of allowances.

Gratuity (PR No 9/2016)

The changes addressed in the PR are as follows:

    • Updated the “Relevant Provisions of the Law” section to include paras 14, 25, 25A, 25B, 25D and 30A of Schedule 6 of the Income Tax Act 1967.

    • Amended the “Tax Treatment of Gratuity” section to:

      – Reflect the new tax treatment where gratuity will be taxed in the year of receipt.

      – Removed examples/clarifications related to the previous tax treatment.

      – Clarified the definition of “retirement” under the Minimum Retirement Age Act 2012.

      – Added clarification and examples in respect of the new tax treatment under para 25D of Schedule 6 of the Income Tax Act 1967where employees may receive an exemption of RM1,000 for each completed year of service on gratuity payment.

      – Added clarification and examples in respect of gratuity received while still in service.

    • Employees Provident Fund to reflect the latest tax treatment.

    • Editorial changes.

This PR replaces the PR No 10/2011 dated 5 December 2011.

Kindly refer to the IRB website for further details.

Source: IRB website, 23 November 2016, IntelliConnect Tracker