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预付款是要纳税的! Advance payments are taxable!

Is business income taxed on accrued or receipt basis?


Prior to year of assessment 2016, it was a generally accepted principle that business income is taxable when the services have been rendered.


On 29 Dec 2015, the Finance Act was passed and S.24(1)(b) and S.24(1)(c) of Income Tax Act (ITA) was amended which now read “... any services rendered or services to be rendered at any time in the course of carrying on a business” and “... any property dealt or to be dealt with at any time in the course of carrying on a business” respectively. 在2015年12月29日,通过了《财政法》,并对《所得税法》第24(1)(b)条和第24(1)(c)条进行了修订,修订后的内容为“...在开展业务的过程中任何时候提供的任何服务或将要提供的任何服务...在经营业务过程中任何时候处理或将要处理的任何财产”

And S. 24(1A) was introduced which states that money received by a person in respect of any services to be rendered or the use or enjoyment of any property shall be treated as gross income for the relevant period in which the money is received notwithstanding that no debt is owing to the relevant person in respect of such services or such use or enjoyment.

引入了第24条(1A ),规定一个人因提供任何服务或使用或享受任何财产而收到的款项应被视为收到该款项的有关时期的总收入,尽管没有因这种服务或这种使用或享受而欠有关人员的债务。

Implications from the amendments 修正案的影响

a. With effect from year of assessment 2016, when a customer pays in advance for services to be performed in the future, the money received by the taxpayer is deemed as an income and is subjected to tax in the same assessment year when the money is received..


Some examples of services where clients may pay in advance: tuition fees, concert tickets, packages beauty treatments, annual golf membership fees, subscription services, prepaid mobile phone credit, stored value card (e.g. Touch n Go), etc.

客户可以提前支付的服务示例包括:学费、音乐会门票、美容套餐、年度高尔夫会员费、订购服务、预付费手机信用、储值卡(如Touch n Go)等。

b. This requirement would also apply to rental payment for the use of property. 这一要求也适用于使用财产的租金

c. For any portion of the advance payment which is refunded to the customer, the refunded amount is tax deductible in the year of the refund. 对于退还给客户的预付款,退还的金额可在退款年度扣除税款。

d. The Inland Revenue Board of Malaysia (IRBM) has clarified that “security deposit”, “forfeit deposit” and “return deposit” are not advance payment for services, where it is clearly meant to be a refundable security deposit.


e. Sale of goods are not affected by these amendments.


Comments from StanleyCo (StanleyCo的评论)

1. This requirement under the ITA is a clear divergence from the generally accepted accounting principle where income is only recognised when services are performed. ITA的这一要求与公认的会计原则明显不同,在公认的会计原则中,收入仅在提供服务时确认。

2. Taxpayer who provides both goods and services, should clearly segregate the advance payment between goods and services – as each carries different tax treatment. 既提供商品又提供服务的纳税人应该明确区分商品和服务的预付款,因为每种商品和服务都有不同的税收待遇。

3. Clients are advised to clearly identify all advance payments received for services and reconcile this to the revenue/income reported for tax purposes.


Let’s talk:

At StanleyCo, our management team is consisted of chartered accountants, licensed tax agents, GST agents and chartered secretaries. Please contact us if you need assistance with the topic above.


Disclaimer: Every effort has been made to provide accurate information. However, the information and regulations contained in this article are subject to changes and amendments by the relevant authority at any time. As such, the information in this article may not be current. 免责声明:我们已尽一切努力提供准确的信息。但是,本条款中包含的信息和规定可能会被相关机构随时更改和修订。因此,本文中的信息可能不是最新的。

And the information provided in this article is general commentary only and shall not be considered as advice or recommendation. As all tax situations are specific to their facts and will differ from the situations in this article - if you have specific tax questions you should consult a licensed tax agent.



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