1. CP38 – ADDITIONAL SALARY DEDUCTION INSTRUCTION

CP38 is issued by the IRBM which requires employers to make additional deductions in monthly instalments (other than monthly tax deductions or MTD), for the settlement of employee income tax arrears.

The employer must make the payment according to the separate column provided in the Tax Deduction Statement by the Employer (CP39).

Taxpayers, who receive the CP38, are advised to contact Hasil Care Line at 03-8911 1000 or the IRBM branch that handles their tax files, if they need further clarification regarding this instruction.

2. HASIL KNOWLEDGE CENTRE (HKC)

Hasil Knowledge Centre (HKC) is an interactive system that offers search support for obtaining tax information quickly. The purpose of HKC is to provide instantaneous tax information based on the keywords entered by users.

Users only need to enter the keywords and then click “Ask@HKC”. Immediate feedback will be displayed based on the keywords entered.

HKC can be accessed via the IRBM Official Portal, at www.hasil.gov.my by clicking the “Ask@HKC” widget.

3. DIGITAL BUSINESS

Digi ta l business refers to economic act iv i t ies that use digi tal technology. Any business transact ion conducted th rough d ig i ta l techno logy i s cons idered as a d ig i ta l business, even if the payment and delivery related to the transaction is physically conducted.

Individuals or companies that engage in digital businesses in Malaysia are subject to the Income Tax Act 1967. Examples of the digital business sectors are:

a) Retail: dropship, agents, stockists and othersb) Healthcare: sale of healthcare productsc) Advertising: Bloggers, Instafamous, Youtubers, Live Streamers

Taxpayers can obtain more information about the digital business taxation from ‘HASIL e-Book At A Glance’ via the MyTax link, https://mytax.hasil.gov.my/.

5. TAX CLEARANCE LETTER (TCL)

Tax Clearance Letter (TCL) is a certificate issued by the IRBM to employers related to the income tax of employees, who about to cease an employment / retire / want to leave Malaysia or employees who have died. For individuals who receive income other than employment, the heir or appointed executor is responsible for making a tax settlement in the event of the taxpayer's death.

The employer must inform the IRBM in not less than 30 days before the date of termination / retirement / the employee is expected to leave Malaysia; or not later than 30 days after being notified of the employee's death.

The employer also must withhold any part of the money that will or can be paid to the employee until receiving the TCL from the IRBM.

The application for tax clearance can be made via:

a) e-SPC via the MyTax link (by employers only)b) Manual submission to the IRBM branch that handles the relevant

individual tax file, using the following application forms:

i) CP22A: For private employeesii) CP22B: For civil servantsiii) CP21: Employees who will leave Malaysia

EDITION 7/2O21

TAX - SMARTLet’s Be

4. NATIONAL TAX CONFERENCE 2021

This annual event, jointly organized by CTIM and IRBM, will be held in a hybrid (physical and virtual) format, as per the following details:

Dates : 27 and 28 July 2021

Theme: Taxation: Achieving Economic Resilience and Supporting Business Continuity

Guest of Honour :

YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul AzizMinister of Finance Malaysia

Further information on NTC 2021 can be obtained from the IRBM Official Portal, at www.hasil.gov.my.