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Q: If a company applied for bank loan moratorium last year and the interest charged is close to RM1 million. Is this bank loan interest tax deductible?

A: The interest expenses payable that become due to be paid in a basis period of year of assessment (YA) is tax deductible under subsection 33(4) of the Income Tax Act 1967. 
If there is any amendment on the loan repayment due to the moratorium affecting the 'date of interest due to be paid' or 'amount of interest due to be paid', the company must make appropriate adjustments to the loan interest that is tax deductible.

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

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