Expenses incurred to generate receipts that have suffered withholding tax

Pursuant to Paragraph (8) of the Tax Ruling TR-2012/B9, expenses incurred in generating receipts which have already suffered Withholding Tax, referred to in Section 10 (d) (8) of the Business Profit Tax Act shall not be deducted when computing a Person’s taxable profits. To make this distinction clear, BPT Return (MIRA 304) form has been modified and the new version 15.1 reflects the following change; added item 25, under Section B

Item no 25: Expenses incurred to generate receipts that have suffered withholding tax

With this change, all expenses incurred towards generating receipts that have suffered Withholding Tax must be explicitly stated in the BPT Return form.