Would the secretarial & taxation fee deductible?

Previously, the secretarial and tax fee are not allowed for deduction due to those expenses are not incurred in the production of income under Sec 33 Income Tax Ac 1967.

However, with effect from YA 2015, secretarial and tax fee are grant a “green light” allowed for tax deduction. We need to look into the details in what manner the deduction would have impact to the business.

Secretarial fee deduction up to RM5,000

The secretarial fee required to meet the following criteria :

1. The fee must be paid to a company secretary who registered under the Companies Act 2016 and

2. The fee are allowed if the fees are incurred and paid in the basis year.

3. The secretary duty is complying with statutory requirement under the Company Act 2016, such as meetings of company, preparation of resolution, share issues, submission of prescribed form.

4. Not all the expenses are eligible for deduction, those reimbursement expenses are not qualify for deduction. Such as : telephone/fax, printing and stationery, postage, travelling, accommodation and Annual General Meeting.

Tax fee deduction up to RM10,000

Similarly, tax payer need to fulfill the following criteria :

1. Falling fee for for YA 2015 and subsequent YA including the estimates of tax payable (CP 204, CP 204A and CP 204B) and instalment tax payment are eligible for deduction.

2. Those expenses incurred and paid in YA 2015, but related to YA 2016 are also qualify for deduction.

3. GST filing fee for the taxable period of December 2015, if incurred and paid in YA 2016 are qualify for dudection in YA 2016,

4. The filing of tax fee does not include fee for advisory, compute tax computation and any incidental expenses such as reimbursement. Such as : telephone/fax, printing and stationery, postage, travelling, accommodation.

Even though an PU order has been issued on 17 Dec 2014, however, the discussion between the Accountancy Professional Body and Inland Revenue Board (IRB) are still carry on. We are still waiting the Inland Revenue Board allow for more deduction.

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