Inland Revenue Board of Malaysia (IRBM) – Income Tax Department
On the 1st of March, 1996, the Inland Revenue Depart of Malaysia became the Inland Revenue Board of Malaysia (IRBM) which is now what it is formally known as today. IRBM in Malaysia is one of the main agencies responsible for collecting revenue for the Ministry of Finance. The Ministry of Finance, better known by its abbreviation MOF, is the governing body which is responsible for all government expenditure and revenue raising. The MOF is responsible for the development of economic policy and to prepare the federal budget yearly for Malaysia.
IRBM, in accordance with the Inland Revenue Board of Malaysia Act 1995, is an agency which was established to be given more autonomy in the country, especially when it comes to matters of financial and personnel management. It is also IRBM’s responsibility to improve on the quality and the effectiveness of tax administration in Malaysia. IRBM’s main roles and responsibilities can be summed up as being responsible for the overall administration of direct taxes which fall under the following acts:
- The Petroleum (Income Tax) Act 1967
- The Real Property Gains Tax Act 1976
- The Income Tax Act 1967
- The Promotion of Investments Act 1986
- The Labuan Offshore Business Activity Tax Act of 1990
- The Stamp Act of 1949
As a board, IRBM has a number of duties which they are tasked with carrying out. To put it simply, IRBM is responsible for the following functions and duties:
- IRBM is responsible for acting as an agent for the government and is required to provide services which include administration, assessing, enforcing and collecting payment of taxes. The taxes upon which need to be collected by the agency include income tax, petroleum income tax, stamp duties, real property gains tax, estate duties and other taxes which may be agreed upon by the government of the board.
- It is the duty of IRBM to take part either in or outside of Malaysia when it comes to all matters relating to taxation.
- The IRBM is required to provide advice to the government on any matters which are related to taxation, in addition to being required to liaise with the corresponding ministries and statutory bodies.
- Part of IRBM’s responsibility is to perform other functions which are conferred on the board by any other written law.
- IRBM is also required to act as a collection agent for and on behalf of any body involved in respect to the recovery of loans due for repayment.