Gov Confirms Limits on Business Loss Carryforwards in Malaysia

Malaysia’s Prime Minister and Finance Minister has clarified that the Malaysian government will maintain time limits on the carryforward of unabsorbed adjusted business losses.

Carrying Forward Business Loss

The decision, outlined under Subsection 44(5F) of the Income Tax Act 1967, caps the carryforward period at seven consecutive assessment years from the year the loss occurred.

This measure, effective from the 2019 assessment year, aims to regulate tax planning and accommodate various tax incentives provided to businesses.

Carrying forward business losses

The prime minister acknowledged the challenges faced by companies but emphasized that extensions beyond ten years would be considered for sectors with longer gestation periods.

Applications for such extensions can be made to the Ministry of Finance, which will evaluate them on an individual basis.

Source: MSN News