Tax Deductibility of Professional Indemnity Insurance Premium

Key points of this update: 1. Insurance premium paid for professional indemnity insurance is tax deductible if the professional carries on a business related to his professional. 2. Taxpayer affected includes lawyers, accountants, architects, doctors, pharmacists, engineers, surveyors or any other professions where the status of the profession is recognised by a written law or statute in Malaysia. 3. Compensation received from the insurance company is a taxable income. 4. Compensation paid to the claimant is a tax deductible expense. Professionals in Professional Practice According to the latest Public Ruling 8/2017, insurance premium paid for professional indemnity insurance (PII)

Clarifications on effective date of Income Tax (Exemption) (No. 9) Order 2017

The Inland Revenue Board Malaysia (IRBM) has issued Practice Note No. 3/2017 to clarify the effective date of the abovementioned Exemption Order (No. 9) in regards to withholding tax for services performed by non-residents. Please click here for the practice note. Please refer to our updates entitled “U-turn on withholding tax for service fees paid to non-residents Income Tax (Exemption) (No. 9) Order 2017” dated 27 October 2017 for more information on the Exemption Order (No. 9). Please contact StanleyCo if you need assistance StanleyCo consist of chartered accountants, chartered secretaries and tax agents – we are able to assist you in preparing or compiling unaudited financial statements

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