Malaysia Publishes Guidance on Interest Expense Deductions and Interest Income Recognition for Related Person Loans

On 3 December 2015, the Inland Revenue Board of Malaysia (IRBM) published Public Ruling (PR) No. 9/2015 - Deduction of Interest Expense and Recognition of Interest Income for Loan Transactions between Related Persons.

Related Persons

Related persons (including a company, a body of persons, a limited liability partnership and a corporation sole) include:

• When one person has control over the other;
• Individuals who are relatives; and
• When two persons are controlled by another person.

Inte…