Effective 1 January 2025, the submission of Form CKHT 502 for transactions under Section 21B of the Real Property Gains Tax Act 1976 (RPGTA) must be made electronically through the e-CKHT platform. This latest update from the Inland Revenue Board of Malaysia (IRBM) aims to enhance efficiency, ensure compliance, and streamline the process for real property gains tax reporting.
Key Highlights of the Mandatory Submission:
- Scope of Application:
- Section 21B relates to the real property company (RPC) status of companies and their disposal of shares.
- This applies to both resident and non-resident companies disposing of shares in RPCs.
- Transition Period:
- Until 31 December 2024, Form CKHT 502 can still be submitted manually. From 1 January 2025 onwards, all submissions must be electronic.
- Access to e-CKHT:
- The platform can be accessed via the IRBM’s official website. Companies and individuals are encouraged to familiarize themselves with the system and ensure their e-filing accounts are active.
- Supporting Documentation:
- As with the manual submission, all relevant supporting documents must be uploaded through the e-CKHT platform.
- Ensure that scanned documents meet the prescribed format and resolution for successful uploads.
Implications for Businesses:
- Compliance Requirement: Companies must ensure compliance with the electronic submission mandate to avoid penalties or delays.
- Training and Awareness: Tax departments and professionals should be trained to navigate the e-CKHT platform efficiently.
- Digital Readiness: Organizations should review their internal processes to ensure they are equipped for this transition, particularly in handling digital document submissions.
Steps to Prepare:
- Register and Activate Your e-Filing Account: Ensure your company’s e-filing account is active and up to date.
- Digitalize Supporting Documents: Start preparing soft copies of necessary documents for submission to avoid last-minute hurdles.
- Engage Your Tax Advisors: Seek guidance from your tax consultants to ensure smooth compliance with the new requirements.
Conclusion
The mandatory submission of Form CKHT 502 via e-CKHT is a significant step towards modernizing Malaysia’s tax administration system. Businesses should act promptly to ensure readiness and compliance with the new requirements. This publication is intended for general guidance and should not be considered as professional advise. For further guidance or assistance, feel free to reach out to NBL & Associates PLT.