FAQ : Completion of Profits Tax Returns

Frequently Asked Questions & Answers on Completion of Profits Tax Returns [BIR54] issued on or after 2 April 2013

For the benefit of the tax paying public and their tax representatives, some frequently asked questions and their answers are listed below for general information and guidance.

Q1	The company is required to declare in BIR54 the assessable profits made by the non-resident person during the basis period for the year of assessment. Does "basis period" here refer to the basis period of the non-resident person?
A1	Yes. It does not refer to the basis period of the company.
Q2	The company does not know the accounting date (and therefore the basis period) of the non-resident person, can I use 31 March as the accounting date?
A2	Yes. For simplicity sake, you need not spend effort to ascertain the accounting date of the non-resident person. However, if the non-resident person wants to claim the lower tax rate pursuant to the respective double taxation agreement/arrangement, the basis period must refer to that of the non-resident person.
Q3	In practice, the company finds it more convenient to use its own basis period for reporting sums such as royalty paid. Can I use the company's basis period (instead of 1 April to 31 March or the non-resident's basis period) in completing BIR54?
A3	Yes. You should use this basis period consistently. However, if the non-resident person wants to claim the lower tax rate pursuant to the respective double taxation agreement/arrangement, the basis period must refer to that of the non-resident person.
Q4	This year, the company wants to use a basis period different from that used in past years. Is this a change of accounting date situation to which s.18E applies?
A4	Yes. You should explain in a separate sheet why a different basis period is used this year.