Company with bad debt must watch this video before LHDN ......

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How to get a tax deduction on bad debts?

During the MCO period, some small companies had chosen to close down their business due to financial difficulty. Unfortunately, there will be a lot of unpaid debts owed by those companies.

In the trade creditor perspective, since the debts become irrecoverable, they need to write off the debts as bad debts.

When the tax agent computes the tax on irrecoverable debt, some of the bad debts may be added back.

Why this will happen?

Most of the taxpayers may feel unfair as they are unable to collect the debts from the debtor and even now there is non-deductible in tax.

The taxpayer will ask, why my bad debts cannot claim? Can my bad debt deductible in this year?

Sure, you can deduct the debts if you have taken all the necessary steps. If not, you will spend more money to pay the penalty if LHDN comes after you. So, when will the bad debts became tax-deductible? No worries, we had prepared a short video to solve your queries.

Please click and have a look for details:

Is the Provision of Bad Debt tax deductible?

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