Technical Working Group on Taxation (TWGT)

About

Taxation is a mode by which governments make exactions for revenue in order to support their existence and carry out for their legitimate objectives. Taxes and contributions measured include the proﬁt or corporate income tax, social contributions and labor taxes paid by the employer, property taxes, property transfer taxes, dividend tax, capital gains tax, ﬁnancial transactions tax, waste collection taxes, vehicle and road taxes, and any other small taxes or fees.

The Technical Working Group on Taxation (TWGT) facilitates collaboration between government ministries and agencies and private sector stakeholders to simplify and expedite the preparation and filing of returns to the government agencies such as Inland Revenue Board of Malaysia (IRBM), the Employees’ Provident Fund (EPF), Social Security Organisations (SOCSO), the Human Resources Development Fund (HRDF) and the Employment Insurance System (EIS). TWGT also facilitate the other related initiatives like expediting payments of income tax refunds, issues on levying and collecting of taxes and contributions.

Improvement Projects

Customs Duty Drawback Procedure

Concerns have been highlighted by industries on the delays of more than 6 months in receiving duty drawback claims and the various documentations required by Customs officers in different stations.
The objective of this initiative is to streamline the drawback process under Section 93 and 99 and documentation in order to expedite the payment of the drawback claims.
Re-Define The Term of Factory for Reinvestment Purposes

Definition of “Factory”” in does not allow a factory space to be used for other purposes such as meeting room, training rooms etc in order to qualify for Reinvestment Allowances (RA).
Requirement for Natural Person Shareholder for Allowance of Increased Export

With effect from 7 June, 2019, a Malaysian company with corporate shareholders is no longer entitled to enjoy the Allowance of Increased Export (AIE). This is in line with the gazette of Income Tax (Exemption) (No.5) Order 2019 [P.U.(A) 161/2019] and Income Tax (Exemption) (No.6) Order 2019 [P.U.(A) 162/2019]. Industry feedback is that this restriction may affect the export of the Malaysian owned companies as now there is less incentive to export.

Co-chairs

YBhg. Dato' Zamzuri Abdul Aziz

Deputy Secretary General, Ministry of Finance
YBhg. Dato' Chua Tia Guan

Executive Director, Asia Business Centre / Co-Chair TWGT