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