MANAGEMENT

Detailed explanation-1: -Following Budget 2019, Section 39(1)(r) was introduced into the Income Tax Act 1967 (ITA) to provide that a tax deduction will not be allowed on payments by Malaysian residents to any Labuan company, subject to any rules that may be prescribed by the Minister of Finance (MoF).

Detailed explanation-2: -Section 33 ITA and the relevant case law provides clear principles on what can or cannot be deducted from your gross income.

Detailed explanation-3: -127. (1) Notwithstanding any other provision of this Act but subject to section 127A, any income specified in Part I of Schedule 6 shall, subject to this section, be exempt from tax.