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Double deduction for scholarships provided by companies

Double deduction for scholarships provided by companies
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Why Companies Should Pay for Employees to Further Their Study

Overview:

On 7 March 2022, the Malaysian government gazette the “Income Tax (Deduction for the Sponsorship of Scholarship to Malaysian Student Pursuing Studies at Technical and Vocational Certificate, Diploma, Bachelor’s Degree, Master’s Degree or Doctor of Philosophy Levels) Rules 2022 (P.U.(A) 49/2022).

The rules, which encourage talent development in Malaysia will allow the company to claim the double deduction for any qualifying expenditure incurred.

Key takeaways:

1) Who is eligible for the deduction?

2) Who is the “student”?

3) What is a qualifying expenditure?

4) Qualified Course provider

 

Summary of learnings:

1. Who is eligible for the deduction?

The company: -

- Which incorporated under Company Act 2016 and resident in Malaysia; and

- Which sponsors a scholarship to a “qualified student” pursuing a full-time course of study: and

- Which executes a scholarship agreement with a student on or after 1 January 2022 but not later than 31 December 2025.

 

2) Who is the “student”?

A student means an individual: -

- Who is a Malaysian citizen and resident in Malaysia;

- Who has no means of his own

- Whose parents or guardians’ monthly income does not exceed RM10,000.

- Who pursuing a full-time course of study

3) What is qualifying expenditure

Qualifying expenditures are: -

- payment required by relating to the course of study

- educational aid and reasonable cost of living expenses throughout the student’s period of study

4) Qualified Course provider

The course provider must be recognized by the

- Malaysian Qualification Agency or Skills Development Department; or

- Universities and Universities College Act 1971, University Technology MARA Act 1976 or the Private Higher Education Institutions Act 1996

 

Sources & Relevant Links:

-Income tax deduction for the sponsorship of scholarship rules 2022 (P.U.(A) 49)

https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/1718318/PUA49.pdf

-Malaysian Qualifications Agency

https://www.mqa.gov.my/pv4/index.cfm

- Universities and University Colleges Act 1971

https://www.utm.my/legal/files/2020/08/AUKU-PINDAAN-2019-BM.pdf

 

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Special Tax Deduction Rental Reduction

Special Tax Deduction Rental Reduction
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Special Tax Deduction Rental Reduction IRBM FAQ (Revised 22 March 2022)

Key salient points on the revised FAQ :

1. Deduction for rental reduction period has extended to:

SME: from April 2020 extend to Jun 2022 (P.U.(A) 479/2021) (Previously is until December 2021)

Non-SME: January 2021 extend to Jun 2022 (P.U.(A) 480/2021) (Previously is until December 2021)

 

2. Eligible person for deduction has extended to include Micro, previously only for Small and Medium Enterprise (SME)

 

3. SME Certificate issued by SME Corporation Malaysia from Apr 2020 to Dec 2020 can be used as verification of the SME status for rental reduction until 30.06.2022.

 

4. The supporting document needs to be kept as follows:

 

  • Stamped tenancy agreement (new/renewal)

  • Statement of rental income

  • Certificate issued by the SME Corp. Malaysia for SME

    (only for the rental period: April 2020 – December 2020 need the certificate for verification)

  • Need to furnish the Worksheet

HK-C16B – Sdn Bhd, LLP and business trust

HK-4E – Other than Sdn Bhd, cooperatives, LLP, and business trust

Read our past Facebook postings on the special tax deduction on rental reduction :

1. Great News to Landlords! The special deduction on rental reduction with at least 30% to Small and Medium Enterprise (SMEs) and Non-Small and Medium Enterprise (Non-SMEs) has been gazette on 02 September 2021 (Publication date on 08 September 2021). dated on 23.09.2021

https://www.facebook.com/www.ktp.com.my/posts/6183426361699606

2. 中小企业租金特别扣除 dated on on 15.01.2021

https://www.facebook.com/www.ktp.com.my/posts/4948113128564275

3. 没有宪报的命令 (gazette order ) @ 29/11/20, 这些税收优惠只能视为 ''真的假不了，假的真不了''. dated on 30.11.2020

https://www.facebook.com/www.ktp.com.my/posts/4752532264789030

4. We, as approved tax agent, cannot claim these two tax incentives namely dated on 30.11.2020

https://www.facebook.com/www.ktp.com.my/posts/4752610054781251

5. 我的店主和我拿SME Status Certificate!! dated on 3.7.2020

https://www.facebook.com/www.ktp.com.my/posts/4046044398771157

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Is director’s medical expense tax-deductible in Malaysia?

Is director’s medical expense tax-deductible in Malaysia?
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Is director’s medical expense tax-deductible in Malaysia?

In general, medical fee for the employee is tax-deductible under S 33 of the Income Tax Act 1967.

However …

 

Public Ruling No. 11/2019 - Benefits In Kinds.

Under section 13(1) b Income Tax 1967, medical and dental benefits are exempted from income tax for employees

Under paragraph 8.3.1 , if the employee receiving BIK from the employer has control over his employer (company) there is no exemption on the medical fee on the director in control company.

What is control?

For a company, the power of an employee to control is through :

  1. The holding of shares or

  2. The possession of voting power in or

  3. By virtue of powers conferred by the articles of association or another document.

Question on tax deductibility

So what is your tax position on director’s medical fee (allowable vs not-allowable expenditure) in Sdn Bhd (controlled company)?

  1. If the medical fee on the director is BIK and PCB is deducted accordingly on the director’s remuneration. Or

  2. If medical fee is DEEMED as tax exempted BIK !

What is your tax position on this taxing issue?

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Applicability Of Section 140 Of The ITA 1967 on Transfer Pricing Adjustment

Applicability Of Section 140 Of The ITA 1967 on Transfer Pricing Adjustment
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Applicability Of Section 140 Of The ITA 1967 on Transfer Pricing Adjustment

SECTION 140 – POWER TO DISREGARD CERTAIN TRANSACTIONS

Section 140 of the Act provides wide and general powers to the Director

General of the Inland Revenue (DGIR) to combat tax avoidance by disregarding certain transactions and computing or re-computing tax liability of a taxpayer.

 

Where the DGIR has reason to believe that any transaction produces the effect

of:

• altering the incidence of tax

• relieving from a tax liability

• evading or avoiding tax, or

• hindering or preventing the operation of the Act

 

he may disregard or vary such a transaction to counteract its intended effect.

In particular, DGIR may invoke Section 140 in respect of transactions between:

• related parties – ie persons, one of whom has control over the other or both are under common control, or

• individuals who are relatives (parent, child, sibling, uncle, aunt, nephew,

niece, cousin, grandparent, grandchild)

on the grounds that such transactions are not on par with transactions

between independent parties dealing at arm’s length.

 

Transfer pricing adjustment

Whilst the Revenue is empowered to counteract any tax avoidance scheme via Section 140(1) of the ITA, this provision does not extend to transfer pricing adjustments.

We examine a recent decision by the Special Commissioner of Income Tax in OMSB v KPHDN where the Revenue’s transfer pricing adjustments were set aside.

RDS analysis on OMSB v KPHDN

Read the full story on the RDS blog on “Transfer Pricing Adjustments: Applicability Of Section 140 Of The ITA”

https://www.rdslawpartners.com/post/transfer-pricing-adjustments-applicability-of-section-140-of-the-ita

 

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How to amend tax return after filing under S 131 of the Income Tax Act 1967

How to amend tax return after filing under S 131 of the Income Tax Act 1967
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How to amend tax return after filing under S 131 of the Income Tax Act 1967

Overview

Inland Revenue Board (IRB) allows taxpayers to file an Amended Return Form (ARF) if taxpayers need to fix an error or mistake and result in under-payment of taxes.

However, how about if the taxpayer has overpaid the taxes because forgot to claim a tax credit or deduction in Income Tax Return Form (ITRF)? Don't worry, the taxpayer can make an application for relief under Section 131 and 131A of the Income Tax Act 1967 (ITA).

Let's see the conditions and procedure to be satisfied with the application.

Key takeaway:

You will understand:

1. What is considered an error or mistake in ITRF?

2. What are the time frames for the application?

3. What are the conditions for application?

4. How to apply for relief?

Summary of learning:

What is considered an error or mistake in ITRF?

The taxpayer had paid excessive tax because of the following reason:

- Error or omission to deduct an allowable expense

- Arithmetical error

- Misleading of laws

- Income for the previous YA is reported in current YA

- Other non-error or mistake, for example, approval of tax exemption under Promotion of Investment Act 1986.

What is the conditions for application?

The conditions under Section 131 and Section 131(A) of ITA are:

1. To take note that the application will not be considered if the ITRF is in accordance with known stand, rules and practices the DGIR prevailing at the time when the assessment is made.

o Example of the known stand, rules and practices are private ruling or advances ruling, guidelines by IRB, case law and any other written evidence.

2. Taxpayer must pay all the taxes for the relevant year of assessment.

3. Taxpayer must make an application within the time frames after the year assessment.

What are the time frames for the application?

The application for the relief can be made within the following time frames:

i. Within 5 years after the end of the year:

o The errors or mistakes found after the end of the year of assessment in which the assessment is deemed.

o Approval of any exemption, relief, remission, allowance or deduction is granted after year assessment in which the ITRF is furnished; or

o Deduction is granted under ITA or written law gazetted after the ITRF is furnished;

ii. Within 1-year after the end of the year:

o Deduction on expenses is allowed after the payment of withholding tax and related increased taxes.

How to apply for relief?

Taxpayers can make an application for relief by a letter or Form CP15C by stating the reason in detail relating to the application.

Sources:

Public Ruling 7/2020 Appeal Against An Assessment And Application For Relief

https://phl.hasil.gov.my/pdf/pdfam/PR_07_2020.pdf

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(Latest update) Withholding Tax on Payments to Agents

(Latest update) Withholding Tax on Payments to Agents
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(Latest update) Withholding Tax on Payments to Agents

With effect from Jan. 1, 2022, a 2% withholding tax (WHT) will be imposed on monetary payments made by companies to their authorized agents, dealers or distributors, arising from sales, transactions or schemes carried out by the Agents.

A new Section 107D of the Income Tax Act 1967 (ITA) was introduced under the Finance Bill 2021 following the Budget 2022 announcement on 29 October 2021.

The WHT is applicable on in-scope payments made to resident agents, dealers or distributors who are individual residents and who have received more than RM100,000 of such payments in monetary form and/or non-monetary form from the same company in the immediately preceding year of assessment (YA)

The tax withheld is to be remitted to the lRBM within 30 days from date of payment or crediting the payment to the agent, dealer or distributor.

Companies which fail to comply with this requirement will be subject to an increase in tax equivalent to 10% of the outstanding WHT and the underlying gross expenses which are subject to the WHT would be denied a tax deduction

Key salient points from IRB Response to Chartered Tax Institute of Malaysia Comments on 15/4/2022

1. LLPs are excluded from the definition of a payer company.

2. The definition of “Cash” includes transactions via payment vouchers, prepaid credit and e-wallets.

3. The WHT is applicable on the amount before the any contra transactions are made. Hence, the earlier comment in the FAQ that credit notes are excluded from the WHT.

4. Section 107D is applicable on ADD who receive the commissions based on the achievement of sales or services rendered for the payer company.

5. The WHT is not applicable to the payer company’s staff who are ADD if the commission is subjected and the commission is reported in the Form EA.

6. Out-of-pocket expenses incurred by the ADD have to be specifically identified in advance. If the expenses arise from sales, transactions or schemes carried out, then the WHT is applicable on the out-of-pocket expenses.

Source

IRBM has issued a Frequently Asked Questions (FAQ) dated 28 February 2022 (only available in Bahasa Malaysia) on the application of the above Section 107D.

https://phl.hasil.gov.my/pdf/pdfam/Soalan_Lazim_Seksyen_107D_ACP_1967.pdf

Reference :

Read our past posting on withholding tax on payment to agents in our blog

1. Withholding Tax on Payments to Agents dated on 17.03.2022

https://bit.ly/3L3JzOB

 

2. 2% withholding tax on commission dated on 30.12.2021

https://bit.ly/3hRrk20

 

3. 预算案 2022 dated 19.11.2021

https://bit.ly/3tKU7dM

 

4. Budget 2022 - SME edition dated on 18.11.2021

https://bit.ly/3IWhAiR

 

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没有资格获得退税2%的补偿

没有资格获得退税2%的补偿
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没有资格获得退税2%的补偿

  • 根据 ITA 在到期日之后提交的纳税申报表

  • 根据 ITA 第 110 条抵销的税款超过应缴税款

  • IRB 根据 ITA 第 90(3)、91、91A、92 和 96A 条提出的评估。

  • 纳税人申请延长报税时间。

  • 有人对评估提出上诉

  • 在提交截止日期后的 90 或 120 天内，IRB 审计需要缴纳额外的税款

  • 支付的超额税款不是根据 ITA 第 107,107B 和 107C 条分期付款

 

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退税2%的补偿

退税2%的补偿
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退税2%的补偿

你有权获得 2% 的补偿. 如果 IRB 迟退还 (refund) 多付的税款 (tax overpayment)

Terms & Conditions :

1. 在截止日期前提交所得税申报表. 所得税申报表必须按时,完整和正确提交.

2. 可退税的纳税类型

  • PCB：每月减税

  • CP500：分期付款通知书

  • CP204/CP205：估计公司/有限责任合伙企业/社会应缴税款

计算公式

2%的赔偿金按照以下公式支付：

𝑻𝒂𝒙 𝒓𝒆𝒇𝒖𝒏𝒅 × (𝑻𝒐𝒕𝒂𝒍 𝒏𝒐.𝒐𝒇 𝒅𝒂𝒚𝒔 𝒍𝒂𝒕𝒆 )/(𝟑𝟔𝟓 𝒅𝒂𝒚𝒔 ) × 2%

  • 通过电子填写, 自提交截止日期起 90 天后赔偿计算时间计算

  • 通过邮寄/快递,自提交截止日期起 120 天后 赔偿计算时间计算

 

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Tax Responsibility of Employer

Tax Responsibility of Employer
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Tax Responsibility of Employer

Overview

As an employer, are you aware of the responsibilities and deadlines you have to adhere to? To make sure that you do not miss the deadline, here is the summary to help you.

Key takeaways:

You will understand the responsibility and consequences as follows: --

1. Who is the employer?

2. What are the employer’s responsibilities?

3. What are the consequences of failing to comply?

Summary of learning

1. Who is the employer?

- The employer has included Company, Limited Liability Partnership, Partnership, Enterprise and etc.

2. What are the employer’s responsibilities?

a) Register an Employer’s number (E)

The E number can be registered through https://edaftar.hasil.gov.my/.

b) Monthly Tax Deduction (MTD)

The MTD must be calculated based on the employee’s monthly remuneration and remitted to IRBM on or before the 15th of the subsequent month.

c) Employee’s Statement of Remuneration (Form EA)

Form EA has to be prepared and provided to employees on or before the last day of February of the following year.

d) Return Form of Employer (Form E)

Complete and submit the Form E with C.P.8D on or before 31 March of the following year via e-Filing.

e) Notification of New Employee (CP22)

To notify IRBM who is or is likely to be chargeable to tax within 30days after commencement of employment and submitted to any IRBM office.

f) Notification of cessation of employment or cessation by reason of death for an employee in private section (CP22A)

To notify IRBM who is or is likely to be chargeable to tax not less than 30days before the cessation of employment and submitted online via e-SPC or at IRBM office which handles the employee income tax number.

g) Notification of cessation of employment or cessation by reason of death for an employee in the public sector (CP22B)

To notify IRBM who is or is likely to be chargeable to tax not more than 30days after being informed of the death and submitted online via e-SPC or at IRBM office which handles the employee income tax number.

h) Notification of employee leaving Malaysia for more than 3 months (CP21)

To notify IRBM who is chargeable to tax not less than 30days before the expected date of departure and submitted online via e-SPC or at IRBM office which handles the employee income tax number.

i) Statement of monetary & non-monetary incentive payment to an agent, dealer or distributor pursuant to Section 83A of the Income Tax Act 1967 (CP58)

- To prepare the CP58 for its agents, dealers, and distributors.

- To render the CP58 by 31 March of the following year to its agents, dealers, and distributors, if the amount of incentive (monetary and non-monetary) exceeds RM5,000 during the calendar year.

- If LHDN requests for a listing of CP58 information, the employer shall include all information of the agent, dealer or distributor even if the amount is below RM5,000.

j) Withholding Tax (WHT) on Payments to agent, dealer or distributor

Effective from 1 January 2022, the 2% WHT will be imposed on monetary payments made by companies to their authorized agents, dealers or distributors, arising from sales, transactions or schemes carried out by the Agents.

3. What are the consequences of failing to comply?

a) Failure to furnish a Return Form

- Shall be liable to a fine of RM200 - RM20,000 or imprisonment for a term not exceeding six months of both.

b) Late payment

- 10% shall be imposed on the amount unpaid without any further notice.

Sources

Employer Responsibility

https://www.hasil.gov.my/en/employers/responsibility-of-employer/

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What is the tax treatment for the income received by medical practitioners (Specialist Doctors)?

What is the tax treatment for the income received by medical practitioners (Specialist Doctors)?
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What is the tax treatment for the income received by medical practitioners (Specialist Doctors)?

IRB has produced a guideline on tax treatment for specialist doctors again.

Summarised below are the key salient points :

Case study 1

A specialist doctor with a Sdn Bhd has an agreement with a private hospital.

- Doctor has received consultation fees from the hospital.

- Patient was referred by the private hospital and paid to the hospital directly.

- Facilities in the private hospital have been used during medical treatment.

Tax treatment: The consultation fee received shall be reported under S4(a) of ITA 1967 as individual business income.

Case study 2

A specialist doctor with a Sdn Bhd has been involved in consultation services and medical-related fields (i.e. medical goods trading, pharmaceuticals, and health aids).

Tax treatment: As there are two types of income, it shall be declared with separated sources of income.

a) The consultation fee received shall be reported under S4(a) of ITA 1967 as individual business income.

b) The medical goods trading income shall be reported under S4(a) of ITA 1967 as individual or company business income.

*** Form B: S4(a) of ITA 1967 as individual business income

*** Form C: S4(a) of ITA 1967 as company business income

Case study 3

A specialist doctor with a Sdn Bhd owns a clinic in a private hospital.

- Patient visits the clinic directly without any referral by the private hospital.

- No facilities in the private hospital are being used during medical treatment.

Tax treatment: The consultation fee received shall be reported under S4(a) of ITA 1967 as company business income.

Case study 4

A specialist doctor under an employment contract with a private hospital.

- Doctor has received director remuneration from the hospital.

Tax treatment: The director remuneration received shall be reported under S4(b) of ITA 1967 as employment income.

Expenses can be claimed against S4(a) business income of ITA 1967

Condition: The expenses incurred are wholly and exclusively in the production of gross income.

Example for expenses:

  •  Professional indemnity insurance

  •  Seminars, workshops or conferences approved by CPD Review Committee

  •  Rental of equipment/ operating room in a private hospital

  •  Medical practitioner license and etc.

Capital allowance can be claimed against S4(a) business income of ITA 1967

Persons Eligible to Claim Capital Allowances

  •  A person who is carrying on a business;

  •  Has incurred capital expenditure on an asset for the business;

  •  The asset is used for business purposes.

Source:

Garis Panduan Layanan Cukai Ke Atas Pendapatan Pengamal Perubatan (Doktor Pakar) Di Hospital Swasta Sama Ada Ditaksir Di Bawah Individu Atau Syarikat

https://bit.ly/37bHJfQ

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Tax clearance Malaysia LHDN

Tax clearance Malaysia LHDN
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Tax clearance Malaysia LHDN

Latest tax audit operasi

IRB has initiated tax audit on the following

1. CP21 - Notification by Employer on Employee's departure from Malaysia

http://phl.hasil.gov.my/pdf/pdfborang/CP21_Pin.1_2021.pdf

2. CP22 - Notification of New Employee

http://phl.hasil.gov.my/pdf/pdfborang/CP22_Pin.1_2021.pdf

3. CP22A - Notification of Cessation of Employment

http://phl.hasil.gov.my/pdf/pdfborang/CP22A_Pin.1_2021.pdf

Penalty on non-compliance on CP21, CP22 & CP22A

Delay in submitting the application for tax clearance may be subjected to penalty. The penalty will be in the form of fines between MYR 200 and MYR 20,000 and imprisonment for up to six months.

LHDN may take legal action against the employer who fails to pay the outstanding tax as per the Tax Clearance Letter.

How to submit CP21 + CP 22A online via IRB e-SPC.

STEP 1: Go to LHDN Website: https://ez.hasil.gov.my （网站）~ Key in New IC number

STEP 2: Key in password

STEP 3: Select e-SPC

STEP 4: Key in Employer’s number

STEP 5: Select Form and Key in accordingly

  • CP22A – Private （私人公司）

  • CP22B – Government （政府）

  • CP21 – Foreign Leaver （外国人)

STEP 7: Select Log Out

What documents IRB ask for?

Basically these are the documents required in a typical tax audit on employer on CP21, CP22 & CP22A :

•Staff listing

•Form E – Return of C.P.8D

•Form 22

•Form 21

•Form 22A

•Payroll System Data

•Latest of Form 9, 24,49 and 13

•Borang D(Kaedah 13)and Borang A(Maklumat Perniagaan)

•Form EA/EC

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

New e-Telegraphic Transfer (e-TT) System for Tax Payments

New e-Telegraphic Transfer (e-TT) System for Tax Payments
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New e-Telegraphic Transfer (e-TT) System for Tax Payments

Following the Inland Revenue Board (“IRBM”)’s media release on 3 March 2022, the IRBM has rolled out the new e-TT system which will generate a unique Virtual Account Number (VA) as a payment identification.

This will assist the IRBM to trace the electronic transfer of funds by taxpayers to its accounts and identifying the taxpayers.

Effective from 1 April 2022, taxpayers who wish to make payments through Telegraphic Transfer, Electronic Funds Transfer and Interbank Giro from within and outside Malaysia, are required to obtain a Virtual Account Number.

Key summary of the new e-TT system for tax payment

1. Virtual Account (VA) number is required as a payment identification identity from IRBM for tax payment with effect from 1st April 2022.

2. Taxpayer will receive the e-TT notification in your email from IRBM.

3. Each VA number is limited to one transaction.

4. In case of withholding tax (WHT) payment, do remember to email the FULL documents to WHToperasi@hasil.gov.my on the day of payment.

5. & more

Type of tax payments

The Virtual Account Number generated under the e-TT system caters for the following types of taxes:-

(i) Income tax

(ii) Withholding tax

(iii) Petroleum income tax

(iv) Compound

(v) Public entertainer

(vi) Real Property Gains Tax – Section 21B retention sum payment

Each Virtual Account Number can only be used for one transaction.

Withholding Tax Payment operational issues

In case of WHT payment, do remember to email the FULL documents to WHToperasi@hasil.gov.my on the day of payment.

Full documents :

  1. Completed CP tax payment form

  2. Invoice

  3. Proof of payment

  4. Virtual Account No.

Source

1.Read the media release from IRBM on e-TT

Click https://bit.ly/37ptnID

2.How to generate a Virtual Account Number (VA) as a payment identification identity from IRBM?

Click https://bit.ly/3JhHe0K

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

Personal Income Tax Relief 2021 Malaysia

Personal Income Tax Relief 2021 Malaysia
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Personal Income Tax Relief 2021 Malaysia

It is tax season whereby taxpayers are to file tax returns and pay taxes accordingly. Other than truthfully declaring your income and reliefs, and submitting your tax files before the deadline stipulated by LHDN, taxpayers are also responsible for record-keeping.

.What is the 2021 personal deduction?

With that, here’s the full list of tax reliefs for YA 2021.

1.Individual and dependent relatives - RM9,000

2. Medical treatment, special needs and carer expenses for parents (Medical condition certified by medical practitioner) - RM8,000 (Restricted)

3. Purchase of basic supporting equipment for disabled self, spouse, child or parent - RM6,000 (Restricted)

4. Disabled individual - RM6,000

5.Education fees (Self)

  1. Other than a degree at masters or doctorate level - Course of study in law, accounting, islamic financing, technical, vocational, industrial, scientific or technology

  2. Degree at masters or doctorate level - Any course of study

  3. Any course of study undertaken for the purpose of up-skilling or self-enhancement recognized by the Director General of Skills Development under the National Skills Development Act 2006 – effective from YA 2021 until YA 2022. (Restricted to RM1,000)

RM7,000 (Restricted)

6. Medical expenses for serious diseases for self, spouse or child - RM8,000 (Restricted) 

7. Medical expenses for fertility treatment for self or spouse

8. Vaccination expenses for self, spouse and child. Types of vaccines which qualify for deduction are as follows:

  1. Pneumococcal;

  2. Human papillomavirus (HPV);

  3. Influenza;

  4. Rotavirus;

  5. Varicella;

  6. Meningococcal;

  7. TDAP combination ( tetanus-diphtheria-acellular-pertussis); and

  8. Coronavirus Disease 2019 (Covid-19)

RM1,000 (Restricted)

9 (i) Complete medical examination for self, spouse, and child as defined by the Malaysian Medical Council (MMC). 
(ii) COVID-19 detection test including purchase of self detection test kit for self, spouse, child.
RM1,000 (Restricted)

10. Lifestyle – Expenses for the use / benefit of self, spouse or child in respect of:

  1. purchase and subscription of books / journals / magazines / newspapers (including electronic subscription) / other similar publications (Not banned reading materials)

  2. purchase of personal computer, smartphone or tablet (Not for business use)

  3. purchase of sports equipment for sports activity defined under the Sports Development Act 1997 and payment of gym membership

  4. payment of monthly bill for internet subscription (Under own name)

RM2,500 (Restricted)

11. Lifestyle – Purchase of personal computer, smartphone or tablet for self, spouse or child and not for business use

This deduction is an addition to the deduction granted under item 10.

RM2,500 (Restricted)

12. Purchase of breastfeeding equipment for own use for a child aged 2 years and below (Deduction allowed once in every 2 years of assessment) - RM1,000 (Restricted)

13. Payment for child care fees to a registered child care centre / kindergarten for a child aged 6 years and below - RM3,000 (Restricted)

14. Net deposit in Skim Simpanan Pendidikan Nasional (Net deposit is the total deposit in 2021 MINUS total withdrawal in 2021) - RM8,000 (Restricted)

15. Husband / wife / payment of alimony to former wife- RM4,000 (Restricted)

16. Disabled husband / wife - RM5,000

17. Each unmarried child and under the age of 18 years old- RM2,000

18. Each unmarried child of 18 years and above who is receiving full-time education (''A-Level'', certificate, matriculation or preparatory courses).

RM2,000

19. Each unmarried child of 18 years and above that:

  1. receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/ preparatory courses).

  2. receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate).

  3. the instruction and educational establishment shall be approved by the relevant government authority.

RM8,000

20. Disabled child - RM6,000

Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in

Higher Education Institute that is accredited by related Government authorities

RM8,000

21. Life insurance and EPF INCLUDING not through salary deduction

  1. Pensionable public servant category

    • Life insurance premium

  2. OTHER than pensionable public servant category

    • Life insurance premium (Restricted to RM3,000)

    • Contribution to EPF / approved scheme (Restricted to RM4,000)

RM7,000 (Restricted)

22. Deferred Annuity and Private Retirement Scheme (PRS) - with effect from year assessment 2012 until year assessment 2025 - RM3,000 (Restricted)

23. Education and medical insurance (INCLUDING not through salary deduction) - RM3,000 (Restricted)

24. Contribution to the Social Security Organization (SOCSO) - RM250 (Restricted)

25. Payment for accommodation at premises registered with the Commissioner of Tourism and entrance fee to a tourist attraction

(Expenses incurred on or after 1st March 2020 until 31st December 2021)

Registered accomodation premises can be check thru link of : http://www.motac.gov.my/en/check/registered-hotel

RM1,000 (Restricted)

26. Additional lifestyle tax relief related to sports activity expended by that individual for the following:

  1. Purchase of sport equipment for any sports activity as defined under the Sport Development Act 1997 (excluding motorized two-wheel bicycles);

  2. Payment of rental or entrance fee to any sports facility; and

  3. Payment of registration fee for any sports competition where the organizer is approved and licensed by the Commissioner of Sports under the Sport Development Act 1997.

RM500 (Restricted)

 

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Bad debts written off LHDN

Bad debts written off LHDN
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一定要出律师信坏账才可以扣税吗?

让我们参考 IRB Public Ruling 4/2019 坏账被定义为 在采取适当措施收回后被认为无法收回的债务 :

  1. 发出提醒通知

  2. 债务重组计划.

  3. 债务清偿的重新安排.

  4. 有争议的债务的谈判或仲裁.

  5. 法律诉讼.

IRB Tax Ruling

Public Ruling No 4/2019 states bad debt is defined as a debt that is considered not recoverable after appropriate steps have been taken to recover it.

Public Ruling No 4/2019 described the basis of writing off a debt as bad and the actions to be taken to recover the debt as well as the evidence to prove such actions have been taken.

Reasonable steps have been taken to recover the trade debt:

  • Issuing reminder notices

  • Debt restructuring scheme

  • Rescheduling of debt settlement

  • Negotiation or arbitration of a disputed debt

  • Legal action

KTP/THK key takeaways

不必要出律师信....坏账才可以扣税吗?

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Are gifts from employer taxable in Malaysia?

Are gifts from employer taxable in Malaysia?
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Are gifts from employer taxable in Malaysia?

Common questions on gifts from our clients?

1. Cash is given to an employee by the employer for passing the professional examination with excellent results? Taxable?

2. Wedding gifts whether, in the form of cash, jewelry or other items were given to an employee by the employer? Taxable?

3. Gift or reward from my employer during the New Year celebration? Taxable?

Overview

In a competitive business climate, a gift or reward has been proven to improve organizational values, enhance team efforts, increase customer satisfaction and motivate certain behaviors amongst members of staff.

However, do you know the tax impact of the gift or reward received?

Key takeaway

You will understand the:

• Meaning of perquisites

• Tax treatment of perquisites

What are Perquisites?

Perquisites are benefits in cash or in-kind which are convertible into money received by an employee from his/her employer or from third parties in respect of having or exercising employment.

Perquisite is a chargeable income to tax as part of the gross income from employment under paragraph 13(1)(a) of the ITA.

Tax treatment

1. In respect of having employment or exercising an employment

a) Gift

The value of the gift is chargeable to tax when it is received, can be sold, assigned, or convertible into cash, and is received in appreciation for the performance of past services.

However, there is an exemption of RM2,000 under paragraph 25C, Schedule 6 of the ITA if is for a long service award.

b) A sum of cash

Cash money is considered a perquisite if it is an appreciation for the excellent service rendered even though it is given voluntarily by the employer.

* The phrase having employment or exercising employment includes the performance or any duties by an employee.

2. Not related to having or exercising the employment

Pure gifts or testimonials received by an employee from his employer or third parties purely for personal appreciation or for specific personal reasons are not taxable.

Examples of pure gifts or testimonials include:

a) wedding gifts whether, in the form of cash, jewelry or other items were given to an employee by the employer.

b) cash is given to an employee by the employer for passing the professional examination with excellent results.

c) cash, other items and certificate of appreciation given to an employee for his/her extraordinary achievement.

Source:

Perquisites from Employment (PR 5/2019)

http://lampiran1.hasil.gov.my/pdf/pdfam/PR_05_2019.pdf

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, bookkeeping and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

 

Withholding Tax on Payments to Agents

Withholding Tax on Payments to Agents
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Withholding Tax on Payments to Agents

With effect from Jan. 1, 2022, a 2% withholding tax (WHT) will be imposed on monetary payments made by companies to their authorized agents, dealers or distributors, arising from sales, transactions or schemes carried out by the Agents.

A new Section 107D of the Income Tax Act 1967 (ITA) was introduced under the Finance Bill 2021 following the Budget 2022 announcement on 29 October 2021.

The WHT is applicable on in-scope payments made to resident agents, dealers or distributors who are individual residents and who have received more than RM100,000 of such payments in monetary form and/or non-monetary form from the same company in the immediately preceding year of assessment (YA)

The tax withheld is to be remitted to the lRBM within 30 days from date of payment or crediting the payment to the agent, dealer or distributor.

Companies which fail to comply with this requirement will be subject to an increase in tax equivalent to 10% of the outstanding WHT and the underlying gross expenses which are subject to the WHT would be denied a tax deduction

Deferment of remittance of withholding tax

To ensure that all companies which are liable to make payment are able to make appropriate preparations and notifications to their agents, dealers and distributors, that payer companies are allowed to defer the ''remittance'' of the WHT until 31 March 2022 where payer companies are allowed to remit the WHT related to payments for the months of January until March 2022 from 1 April 2022 without being subject to any increase in tax.

Key salient points from the IRBM FAQ:-

• The WHT is not applicable on payment by way of credit note, contra-transaction and discount given to an agent, dealer or distributor.

• The payer company is required to apply the WHT even though the agent, dealer or distributor is subject to CP500 tax instalment payment.

• The category of individual includes sole proprietor and individual partner in a partnership. However, it excludes payment made to a partnership or a Limited Liability Partnership.

• The threshold amount of RM100,000 in the preceding year is to be determined each year. In determining the applicability of section 107D, the residency status of the agents, dealer or distributor in the immediate preceding year is irrelevant

• The preceding year RM100,000 threshold value is to be tested each year (not on a one-off basis) in order to determine whether withholding tax will apply for payment made in the current year.

• The agent, dealer or distributor must have an income tax reference number.

• The 2% WHT amount is to be reported in Form CP58.

• The 2% WHT will be considered as part of the payment for the balance of tax to be paid, upon submission of the income tax return form for the relevant YA by the agent, dealer or distributor.

• The WHT shall be remitted to the IRBM within 30 days after paying or crediting such payments to the agent, dealer or distributor. Remittance is to be made together with Form CP107D.

• If there is a failure to make the WHT payment to the IRBM within the stipulated time, a penalty of 10% would be imposed on the unpaid withholding tax. In addition, the tax deduction for the gross amount of the payment made to agent, dealer or distributor will be disallowed.

• Where a company is making payments to several agents, the company may complete the details of payment for each agents in the appendix [Lampiran CP107D(1)], which is to be attached together with the WHT remittance form [CP107D]. Each appendix could cater up to 20 recipients.

• The amended Form CP58 will include section to report the WHT deducted.

• The WHT remittance form and appendix as well as the updated Form CP58 have yet been released by the IRBM.

• The WHT can be made at the IRBM Service/Payment Counters.

Source

IRBM has issued a Frequently Asked Questions (FAQ) dated 28 February 2022 (only available in Bahasa Malaysia) on the application of the above Section 107D.

https://phl.hasil.gov.my/pdf/pdfam/Soalan_Lazim_Seksyen_107D_ACP_1967.pdf

Reference :

Read our past posting on withholding tax on payment to agents in our blog

1. 2% withholding tax on commission dated on 30.12.2021

https://bit.ly/3hRrk20

2. 预算案 2022 dated 19.11.2021

https://bit.ly/3tKU7dM

3. Budget 2022 - SME edition dated on 18.11.2021

https://bit.ly/3IWhAiR

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks


 


 

马来西亚对海外收入征税政策

马来西亚对海外收入征税政策
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马来西亚对海外收入征税政策...

真的是

一场游戏一场梦

不要谈什么分离 我不会因为这样而哭泣

那只是昨夜的一场梦而已

不要说愿不愿意 我不会因为这样而在意

那只是昨夜的一场游戏

雪消春水一场空....白费我们之前所做的

1. Foreign source income taxable in Malaysia 2022 dated on 11/01/2022

https://bit.ly/3KL1NUx

 

2. (u-turn update) foreign source income budget 2022 dated on 31/12/2021

https://bit.ly/3tXbici

 

3. FAQ on Special Income Remittance Programme (PKPP) dated on 27/12/2021

https://bit.ly/3CFoNBq

 

4. Special Income Remittance Programme (PKPP) to Malaysian Residents dated on 8/12/2021

https://bit.ly/35ObF0Z

 

5. 预算案 2022 dated on 19/11/2021

https://bit.ly/3tYpdPz

 

6. Budget 2022 - SME edition dated on 18/11/2021

https://bit.ly/3tRcq1i

 

7. Foreign source income taxable in Malaysia dated on 10/11/2021

https://bit.ly/3w5BG6y

 

8. Foreign Income Remitted Into Malaysia Taxable 2022 on 2/11/2021

https://bit.ly/3tTfJVI

 

9. 海外收入汇回大马时将被征税 dated on 2/11/2021

https://bit.ly/3Imb8k9

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks


 


 

Maximizing Tax Benefits on Capital Expenditure

Maximizing Tax Benefits on Capital Expenditure
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Maximizing Tax Benefits on Capital Expenditure

Company may maximize their tax benefits on the capital expenditure. Below are actions, you may take in order to help you with tax saving.

No worries, we explain to you how to maximize your tax benefits by using some real-life cases.

Capital Allowance

Generally, capital allowance is eligible for plant and machinery, or tools and equipment for business.

What are tools and equipment？

Some examples of the case law to enhance our understanding.

KPHDN v Tropiland Sdn Bhd (2012) (Court of Appeal)

• The argument here is whether the 7-storey car park is a tool and equipment to the business?

• The taxpayer is a property developer and constructed a multi-story car park before letting it out. They claim a capital allowance for the car park.

• The taxpayer’s income was derived from the rental of the car park. Without the multi-story car park, the taxpayer could not have generated an income from the land.

Hence, they can claim the capital allowance for the car park.

Industrial Building Allowance(IBA)

If you own or rent a factory for your business, you may claim the qualifying expenditures under Industrial Building Allowance (IBA).

Reinvestment Allowance(RA)

The definition given by MIDA, RA is available for existing companies engaged in manufacturing and selected agricultural activities that reinvest for expansion, automation, modernization, or diversification into any related products within the same industry on condition.

Lavender Confectionery & Bakery Sdn Bhd V KPHDN

Lavender is a manufacturer, distributor and dealer in cakes, confectionery, bread and biscuits.

In YA 2011, the company claimed Industrial Building Allowance (IBA) for the additional demolition of substructures and renovation and Reinvestment Allowance (RA) for plant and machinery for JB factory and KL Outlet.

However, it had been rejected due to one of the demolition cost before constructing the buildings which did not form part of the Lavender’s factory. Company is also disallowed to claim under RA due to the items are not used in the factory.

For IBA claim of the Company, the decision of the Court is the Company can claim for the IBA since they fulfilled the IBA claim requirement of building used for purpose of business and used as a factory.

The Company can claim for RA as they fulfilled the RA claim requirement as

• The Company must be a resident of Malaysia

• An operation for more than 36 months

• Incurred capital expenditures are for the expansion of their business.

As their outlet in KL continues the manufacturing process of bread and confectionaries in the principal factory at Plentong.

The capital expenditures incurred for plant and machinery that leads to the expansion of Company’ business is entitled to RA.

What does KTP say?

From the story above, we can understand that the determining factor between Capital allowance and Industrial building allowance is whether it is a “tool” to generate income or it is a ''building'' that is used as industrial business purposes.

Qualified expenditure can be the assets themselves and also the incidental cost incurred on the assets. To maximize your claim, we can always go back to the ruling or act to look at the definition.

Sources

KPHDN v Tropiland Sdn Bhd (2012) (Court of Appeal)

https://bit.ly/3MIlDBq

Lavender Confectionery & Bakery Sdn Bhd V KPHDN

https://bit.ly/35RDSnn

Qualifying Expenditure and Computation of Industrial Building Allowances

https://bit.ly/379lK8P

Qualifying Expenditure And Computation Of Capital Allowances

https://bit.ly/366wQek

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

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KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Book-keeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource book-keeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Book-keeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource book-keeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

earning stripping rules malaysia lhdn

earning stripping rules malaysia lhdn
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Update on Earning Stripping Rule (ESR)

The Income Tax (Restriction on Deductibility of Interest) (Amendment) Rules 2022 (“Amendment Rules”) has been gazetted to amend the Income Tax (Restriction on Deductibility of Interest) Rules 2019.

The following two Principal Rules is amended in amendment rules:

1. Definition of qualifying deduction

2. Carrying forward of excess interest

The amendment rules came into operation on 1 February 2022.

Key takeaways:

You will understand: -

1. What is ESR?

2. Scope of application

3. New amendment on Principal Rules

4. Non-application

Summary of learnings:

1. What is ESR?

Effective from 01 July 2019, ESR was introduced under Section 140C of the Income Tax Act 1967 (ITA) to restrict the tax deduction on interest expenses in relation to financial assistance in a controlled transaction.

Under the ESR, the maximum amount of interest that can be deducted is 20% of the tax – EBITDA (earnings before interest, tax, depreciation, and amortization).

*Tax – EBITDA = Adjusted Business Income + Qualifying deduction+ Total Interest Expenses claimed in business Income.

2. Scope of application

ESR apply to interest expenses that arise from financial assistance granted by:

- its associated person outside Malaysia;

- its associated person outside Malaysia which operates through a permanent establishment in Malaysia;

- a third party outside Malaysia where the financial assistance is guaranteed by its holding company or any other enterprises under the same MNE Group

Financial assistance includes loans, interest-bearing trade credit, advance, debt, or the provision of security or guarantee.

3. New amendment on Principal Rules

The amendments are as outlined below:

i. Definition of qualifying deduction

Qualifying deduction is equal to the total incentive claims (special deduction, further deduction, double deduction, etc.) deducted in arriving at adjusted income. The definition is replaced as follows:

- where there is business expenditure incurred in the profit and loss account is allowed as deduction under the Act and the amount of the deduction allowed exceeds the amount of the business expenditure incurred, an amount equal to the difference between the amount of the deduction allowed and the amount of the business expenditure incurred in the profit and loss account; or

- where there is no business expenditure incurred in the profit and loss account, the amount of deduction is allowable under the Act.

ii. Carry forward rules

- The carry forward rules allow the restricted interest expenses in a year of assessment (YA) to be carried forward and to be deducted against the company’s adjusted income for the subsequent YAs.

- This rule now applies to any person and is not limited to a company.

4. Non-application

According to the De minimis threshold, ESR is not applicable where the total interest expenses for all financial assistance is equal to or less than RM500,000 in a YA.

Source:

Income Tax (Restriction on Deductibility of Interest) (Amendment) Rules 2022:

https://phl.hasil.gov.my/pdf/pdfam/ESR_Rules_Pindaan_2022.pdf

Restriction on the deductibility of interest guidelines:

http://lampiran1.hasil.gov.my/pdf/pdfam/RDIG_05072019.pdf

This message was brought to you by KTP

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Book-keeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource book-keeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

Form E 常见错误

Form E 常见错误
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Form E 常见错误

回顾我们过去在 2021 年 16 月 3 日为 KTP|THK 客户举办的免费网络研讨会，由 Ms Caroline Lim 主持 as speaker.

https://youtu.be/84szaL-0Tok

阅读我们过去在 Form E 上的社交媒体帖子

Part 2 Form EA - Benefit in kind and perquisites

1) 董事医疗费 是 免税 (tax free) ??? 实物受益（benefit in Kind) ??? dated 19/02/2021

https://bit.ly/32E99c1

2) 1分钟学习“如何在BIK / Perquisites计算PCB” dated on 17/02/2021

https://bit.ly/3IJN76T

3) 只要你点进来，你能看到员工薪酬-税务节省大秘密 BIK 章 Part I dated 10/02/2021

https://bit.ly/32E9cVf

4) 只要你点进来，你能看到员工薪酬-税务节省大秘密 Part II dated 08/02/2021

https://bit.ly/3r8Gbun

5) 注意！你是否有正确的计算与提交预扣税（PCB)。dated on 26/01/2021

https://bit.ly/3r66XTR

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Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Book-keeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource book-keeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

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THK Group of Companies THK Management Advisory Sdn Bhd 200401000220 (638723­X) THK Secretarial PLT 202304003367 (LLP0037327-LGN)

Wisma THK, No. 41, 41-01, 41-02, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru, Johor, Malaysia.
+6012-771 7903 (Secretary Department)
+6012-771 7803 (Account Department)
+607-361 3443

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