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Malaysia Issues FAQs On COVID-19 Tax Residency Issues

Friday, May 15, 2020

The Government of Malaysia has issued new FAQs on international tax issues relating to COVID-19 travel restrictions.

The FAQs seek to reassure taxpayers that the Government will disregard a period in which a foreign tax resident individual is in Malaysia due to COVID-19 travel restrictions when deciding whether they should be treated as tax resident in Malaysia.

The FAQs further provide guidance on eased rules for businesses unable to convene a meeting of the board of directors.

The FAQs further state that the presence of key personnel in Malaysia owing to COVID-19 travel restrictions will not result in the creation of a permanent establishment.

Finally, the guidance discusses the tax affairs of individuals who would normally work in Malaysia but are unable to do so due to COVID-19 travel restrictions and also the tax affairs of non-resident individuals currently working in Malaysia due to COVID-19.