The Idea Bank is a compilation of selected feedback by the public received through PEMUDAH Website which might be useful for information and reference purposes. The compilation includes complaints, inquiries and suggestions addressed to various Government Agencies which have been appropriately edited for general viewing.

Please also be informed that the information, relevant acts, rules and procedures provided therein may have been reviewed, revised or updated by the respective Government Agencies. You may want to visit the relevant websites for information or submit your inquiries through our  Feedback Form.

Feedback

IRB takes 1 month or more to issue a letter of assessment to pay stamp duty. The letter can only be issued after it is processed by the Stamp Duty Unit and Valuation Department.

It is proposed that the time taken is reduced.

Reply

With effect from Effective 1st January 2008, duty payers have an option to use valuation report by a private valuer to stamp documents for transfer of immovable properties ( Section 36A of the Stamp Act 1949 ). Under the said section, an initial duty would be assessed based on that valuation and upon payment of the initital duty, the relevant document for transfer would be duly stamped. However for the purpose of Section 36A, a bank guarantee payable to the Collector of Stamp Duty is required.

Subsequently, if the valuation by a government valuer is found to be higher than that of the private valuation, then the additional duty so assessed must be paid within 30 days from the date of the Notice of Additional Assessment.

An alternative method to a speedy and early stamping of documents for the transfer of immovable properties is by the internet using e-STPH which can be accessed from IRBM’s website www.hasil.org.my. The time taken to process an application to stamp a particular document for transfer of immovable property is only 10 days. The 10 day period is from the date that the application is received until the date that the Notice of Assessment is issued. IRBM strongly encourages all duty payers to use this method of application.

Feedback

One Stop Centre for stamp duty cases which should be sent dircetly to the Inland Revenue Board (IRB) or Department of Valuation and Property Services (JPPH).

Land duty assessment must be made readily available and updated as the value changes.

Reply

Proposal on ready-made valuation will be forwarded to Department of Valuation and Property Services for their consideration.

  • The One Stop Centre concept is already in practice for transfer of ownership. Through this concept, the lawyer or applicant requesting for the transfer of land ownership title submits the stamp duty request only to the IRB.
  • If assessment is required, the IRB submits the case for evaluation by Department of Valuation and Property Services.
  • Time taken to process the each application and issue Notis Taksiran is only 10 days if the application is done online through the IRB’s Assessment of Land Transfer Ownership System.

Feedback

Malaysia has thousands of tax practitioners doing their taxation services business under the name of “Management Service Company” without proper tax licence although some of them have sufficient working experience and qualification recognized by government (eg. MIT, MATA etc).  This is due to the difficulty in obtaining the tax agent licence.

Propose:
MOF may consider to approve some professional bodies such as MIT, MATA as a Prescribed Body. And the members of the professional body be treated as automatically holding a Restricted Tax Licence in order to allow them to handle some normal tax matters (especially Return Form Lodgement)

Meantime, the MOF may prohibit or restrict  them to handle all those listed companies cases and/or special commissioners cases.

Reply

All accountants having minimal qualification can apply to become a tax agent. The interview process which LHDN is entrusted to conduct is to ensure that the applicant has at least the minimum knowledge and level of professionalism to represent the public in matter pertaining to income tax and other related fields. As for tax agents without licence, the MIT, MATA and other professional bodies representing the accountants have the authority to ensure that such malpractice does not occur and take necessary disciplinary action where required. LHDN will not accept any submission if it is found to be made by unlicensed tax agents. Suggestion to create a Restricted Tax Licence will be given due consideration.

The conditions for application have been agreed to by Malaysian Institute of Taxation (MIT), Malaysian Association of Tax Accountants (MATA) and Lembaga Hasil dalam Negeri (LHDN). Your suggestion for conditional approval with restricted services is not feasible currently since there will be issues regarding supervision and ensuring compliance to licensing conditions. Agents are licensed to ensure that clients are getting the benefit of professional advice.

Maklumbalas

Saya merujuk kepada pembangunan di Bukit Cheras. Pembangunan ini telah selesai sejak 10 tahun lalu. Hakmilik strata telah pun dikeluarkan dan saya telah membayar Cukai Taksiran.  Sekarang ini saya hendak membayar Cukai Tanah dan untuk tujuan itu saya telah pergi ke pejabat Pesuruhjaya Bangunan dan Pejabat Tanah. Saya diberitahu bahawa saya perlu membayar Cukai Tanah dengan merujuk kepada Master Hakmilik. Nampak ganjil. Bagaimana boleh ada dua hakmilik ke atas satu hartanah.  Harap dapat kirakan cukai tanah saya.

 

 

Jawapan

Secara umumnya aduan ini adalah berkaitan pembayaran cukai tanah bagi pembangunan skim strata.

    1. Untuk makluman tuan, bagi pembangunan skim strata, suatu hakmilik dalam bentuk hakmilik strata (strata title) akan dikeluarkan kepada setiap pemilik petak sebagai bukti pemilikan sesuatu petak. Namun begitu, hakmilik tanah di mana bangunan itu terletak masih kekal dan didaftarkan atas nama Perbadanan Pengurusan (Management Corporation atau MC).

 

  1. Berikutan dengan penangguhan pelaksanaan pengenaan cukai petak untuk hakmilik-hakmilik strata, MC masih bertanggungjawab untuk menjelaskan keseluruhan bayaran cukai tanah bagi lot tanah di mana skim strata itu dibangunkan.  Keseluruhan bayaran cukai tanah ini adalah merupakan jumlah keseluruhan cukai tanah yang dibayar oleh pemilik-pemilik petak mengikut umpukan unit syer yang telah ditetapkan di dalam hakmilik strata masing-masing.

Feedback

The right to appeal for rejected application due to inability to submit applications six months before the financial year end of the business as required under Paragraph 15.2 of Inland Revenue Board (IRB), Public Ruling 5/2004 on Double Deduction Incentive On research Expenditure.

Reply

The right to appeal within 30 days from the date of rejection letter as specified in the Public Ruling No. 5/2004 is line with subsection 99(1) of the Income tax Act 1967 where a tax payer may appeal on assessment made to him within 30 days from the date of the notice of assessment. Since the appeal has been submitted to IRB on 12 August 2009 (within 30 days from the date of the rejection letter), it will be reconsidered in the next committee meeting.

Please be informed that every R&D project submitted for approval is evaluated based on the activity, the extent of the project and its connectivity to the existing business of the applicant. A project may vary from another in terms of raw material used, technique and procedure even though the final product could have similar characteristic and function. To ensure a project fulfills the definition of R &D as provided under the Promotions of Investments Act 1986, the project has to be examined thoroughly and later be evaluated by senior tax officers. This is important in order to determine only R&D project that fulfills the definition qualifies for the double deduction.

Feedback

We have had a number of complaints from FMM members about being unable to renew their road taxes at Pos Malaysia after 6pm. As such we would like to propose to PEMUDAH that the Road Transport Department synchronise their “opening” hours with Pos Malaysia for the renewal of road taxes. Pos Malaysia operates up to 10 p.m. but the Department works until 6.00 p.m. Hence, Pos Malaysia is not able to access the Department’s computer system for road tax renewals after hours.

Reply

For your information there are 684 Post Office branches throughout Malaysia that provide Motor Vehicle License and Driving License renewal services.  RTD is informed that the operating hours of most Post Offices are between 8.30 am and 5.30 pm.  From those total only three (3) branches operate until 10.00pm.  They are located in main shopping centres in Kuala Lumpur.  To enable Post Offices to provide the service, the computer system between RTD and Post Offices are ‘linked’ everyday between 7.30am until 6.00 pm.

2.  Referring to your proposal to entend the operating time until 10.00pm, RTD is unable to accommodate at the moment for the following reasons:

(i) RTD has to update all transactions of the day from 8.00pm until 7.00am.  It has to update 50,000 transactions a day.  These transactions involve various agencies such as finance and insurance companies, MITI, Customs Department, Pos Malaysia and Puspakom besides its own internal transactions.  If the Post Office operating time is extended to 10.00pm, the updating work cannot be performed and this will affect the daily operations of RTD and the other agencies on the following day.

(ii) RTD also has to create a historical record for each of those transaction for the purpose of checking and also record for implementing the Department’s function as ‘custodian record’ as stipulated under the Road Transport Act, 1987.

We are glad to inform that for the convenience of the public, starting 17th April 2008, personal Motor Vehicle Licences can be renewed online through Portal My-EG.  This transaction is offered 24 hours a day, 7 days a week.

Feedback

If the hotel management opens a Membership Club that offers free accommodation (once only), discount for food and beverage charges and special health center  facilities to members by charging annual membership subscription, does the hotel need to pay the 5% tax on the annual subscription received from each member?

Reply

Please be advised that service tax of 5% will be applied on the hotel for the annual subscription charged on the members.  This is in line with the Service Tax Act 1975.

Feedback

IRB takes 1 month or more to issue a letter of assessment to pay stamp duty. The letter can only be issued after it is processed by the Stamp Duty Unit and Valuation Department.

It is proposed that the time taken is reduced.

Reply

With effect from 1st January 2008, duty payers have an option to use valuation report by a private valuer to stamp instrument for transfer of immovable properties ( Section 36A of the Stamp Act 1949 ). Under the said section, an initial duty would be assessed based on that valuation and upon payment of the initital duty, the relevant instrument for transfer would be duly stamped. However for the purpose of Section 36A, a bank guarantee payable to the Collector of Stamp Duty is required.

Subsequently, if the valuation by a government valuer is found to be higher than the private valuation, then the additional duty so assessed must be paid within 30 days from the date of the Notice of Additional Assessment.

An alternative method to a speedy and early stamping of instruments for the transfer of immovable properties is via the internet using e-STPH which can be accessed from IRBM’s website www.hasil.org.my. The time taken to process an application to stamp a particular instrument for transfer of immovable property is only 10 days. The 10 day period is from the date that the application is received until the date that the Notice of Assessment is issued. IRBM strongly encourages all duty payers to use this method of application.

Question 1 : What are the documents required for passport application?

Reply : For applicants under 18 years , the following documents need to be produced at the Immigration office:

  • Photocopy of MyCard and the original for verification;
  • Application form;
  • Payment of RM600 for 64 pages and payment of RM300 for 32 pages; and
  • 2 passport size photos.

Further information is available at The Immigration Department of Malaysia ‘s website www.imi.gov.my

Feedback

Propose that the Stamping Fees Payment Counter operating hours be extended beyond 3.30pm

Reply

The payment duty process involves assessment, stamping and endorsement.

  • All collection in cash is required to be sent to the bank on the same day.
  • Banks close at 4.30 and the department needs 15 – 30 minutes to balance and finalise accounts before payment is sent to the bank.
  • However, service is provided to customers who are in IRB before 3.30p.m.
  • IRB will study the difficulties faced by customers.

Feedback

  • The Stamp Duty Office has introduced new procedures for transfer of securities for private limited companies 2 months ago.
  • A payment of RM 10 must be made and the form will be evaluated. This required 10 days.
  • If the company is not newly incorporated, the latest management accounts are required.
  • This causes a lot of inconvenience for business as most companies are unable to submit their management accounts.
  • Stamp Office should follow requirements of provisions of companies Act 1965

Reply

  • The RM10 payment is imposed on all share transfer under the Seksyen 36 Akta Setem 1949.
  • The new ruling for processing transfer of shares will be announced and the time frames are as follows:-
    • For a newly registered company or dormant – 3 working days
    • Other than stated – 7 working days
  • LHDNM is currently looking into the need to present management accounts to make it easier for the public to work with the LHDN.

Question

Inland Revenue Board (IRB) takes one (1) month or more to issue a letter of assessment to pay stamp duty. The letter can only be issued after it is processed by the Stamp Duty Unit and Valuation Department. Propose that the time taken is reduced.

Reply

With effect from 1st January 2008, duty payers have an option to use the valuation report by a private valuer to stamp instrument for transfer of immovable properties (Section 36A of the Stamp Act 1949). Under the said section, an initial duty would be assessed based on that valuation and upon payment of the initial duty, the relevant instrument for transfer would be duly stamped

However for the purpose of Section 36A, a bank guarantee payable to the Collector of Stamp Duty is required. Subsequently, if the valuation by a Government valuer is found to be higher than the private valuation, then the additional duty so assessed must be paid within 30 days from the date of the Notice of Additional Assessment.

An alternative method to a speedy and early stamping of instruments for the transfer of immovable properties is via the internet using e-STPH which can be accessed from IRB’s website www.hasil.org.my.

The time taken to process an application to stamp a particular instrument for transfer of immovable property is only 10 days. The 10 day period is from the date that the application is received until the date that the Notice of Assessment is issued.

IRBM strongly encourages all duty payers to use this method of application.

Question 2 :

The government should open the valuation of the property to be transacted OR to be sold by the Vendor (Land owner) to private Registered Valuation firms run and managed by REGISTERED VALUERS with the Board of Valuers, Appraisers and Estate Agents Malaysia . These professionals are accountable for every valuation done.

Reply :

With effect from 1st January 2008, duty payers have an option to use the valuation report by a private valuer to stamp instrument for transfer of immovable properties (Section 36A of the Stamp Act 1949). Under the said section, an initial duty would be assessed based on that valuation and upon payment of the initial duty, the relevant instrument for transfer would be duly stamped.

However for the purpose of Section 36A, a bank guarantee payable to the Collector of Stamp Duty is required. Subsequently, if the valuation by a Government valuer is found to be higher than the private valuation, then the additional duty so assessed must be paid within 30 days from the date of the Notice of Additional Assessment.

An alternative method to a speedy and early stamping of instruments for the transfer of immovable properties is via the internet using e-STPH which can be accessed from IRB’s website www.hasil.org.my.

The time taken to process an application to stamp a particular instrument for transfer of immovable property is only 10 days. The 10 day period is from the date that the application is received until the date that the Notice of Assessment is issued.
IRBM strongly encourages all duty payers to use this method of application.

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Last Updated: 16 January 2017
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