Secretary Fee & Tax Agent Fee

Tax Deduction for Secretarial and Tax Filing Fee

Pursuant to the Income Tax (Deduction For Expenses in Relation to Secretarial Fee and Tax Filing Fee) Rules 2020 [P.U.(A) 162/2020] published by the Federal Government on 19 May 2020, the following expenses incurred shall be allowed for tax deduction with effect from year of assessment 2020:

  1. Before YA 2020:
    • Maximum secretary fee deductible amount: RM 5,000
    • Maximum tax agent fee deductible amount: RM 10,000
  2. Starting from YA 2020:
    • Maximum secretary fee + tax agent fee deductible amount: Combined RM 15,000

Requirements

  1. Secretarial Fee:
    • charged for secretarial services provided by a company secretary registered under Companies Act 2016 (Act 777) 
    • which is incurred and paid by the person in the basis period for the year of assessment.
  2. Deductible Secretary Fee:
    • Monthly/Yearly secretary fee
    • Preparation of AGM
    • Preparation for resolution
    • Share allotment/transfer fee

Note: Services must be provided by Registered Secretary under Companies Act 2016

Tax Filing Fee

  • Charged for the preparation and submission of return in the prescribed form as follows:
    1. Tax Filing Fee (charged by approved tax agent under Income Tax Act) 
      – for the purpose of sections 77, 77A, 77B, 83 (for the basis period of the immediately preceding year of assessment) and Section 107C of the Act 
    2. SST Filing Fee 
      – for the purpose of Sales Tax Act 2018 (Act 806) and Services Tax Act 2018 (Act 807) 
    3. Filing of Return for Departure Levy 
      – for the purpose of Section 19 of Departure Levy Act 2019 (Act 813) 
    4. Filing of Return for Tourism Tax 
      – for the purpose of Section 19 of Tourism Tax Act 2017 (Act 791)
  • Deductible Tax Agent Fee:
    1. Tax computation/submission fee (Form C)
    2. Tax prepayment submission fee (CP204, CP204A & CP204B)
    3. SST submission fee
    4. Departure levy form submission fee
    5. Tourism tax submission fee

Note: Services must be provided by Licensed Tax Agent

  • Any reimbursement for secretary and tax agent related fee are not deductible.
  • All secretary and tax agent related fee must be paid and incurred for the past or existing year end.
  • The total deduction allowed is up to maximum of RM15,000 for a year of assessment.
  • These rules are effective from year of assessment 2020.
  • Income Tax (Deduction for Expenses in relation to Secretarial Fee and Tax Filing Fee) Rules 2014 [P.U.(A) 336/2014 is revoked.

Source:
Income Tax (Deduction for Expenses In Relation to Secretarial Fee and Tax Filing Fee) Rules 2020

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