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Budget 2023 Tax Seminar Postponed

Budget 2023 Tax Seminar Postponed
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Due to the dissolution of the Parliament, all matters from webinar, internal training, newsletter & social media relating to Budget 2023 is postponed until further notice.

We will inform you in due course most likely when a new government is formed. Stay tuned.

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Service Tax Refund for Companies operating in the Joint Venture Development

Service Tax Refund for Companies operating in the Joint Venture Development
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Service Tax Refund for Companies operating in the Joint Venture Development

Who is Eligible?

  • Joint Venture Development (JDA) operate companies who have been paid on all taxable services.  

When is the effective date?

  • 15ᵗʰ AUGUST 2022.  

What are the 5 Requirements?? 

  • Services are fully used for official purposes and it is the main activities of the JDA operation. 

  • JDA companies need to furnish a declaration for Malaysia-Thailand and joint Authority (MTJA) to proof the service is for official purpose. 

  • JDA had paid for the acquisition. 

  • Comply all the conditions and procedures. 

  • Application of refund must make every three months (quarterly basis). 

Refund policy

Refund requests should be submitted no later than the last day of the month following the end of 3 months period, for example:  

  • Service Acquisition Period : 15 August 2022 – 30 September 2022 (Last date for service tax refund claim application 31 October 2022)

  • Service Acquisition Period : 1 October 2022 – 31 December 2022 (Last date for service tax refund claim application 31 January 2023)

Important points

  • After the period for submission of claims any refund will not be processed. 

  • Service tax exemption is not entitled for importation of taxable service including digital services tax.  

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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, Bookkeeping, Payroll, Advisory)

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

KTP Lifestyle

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Small Value Withholding Tax Payment

Small Value Withholding Tax Payment
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Small Value Withholding Tax Payment (update)

IRB released a media release on 27/09/22 in respect of deferment of small value WHT.

An individual/body resident in Malaysia or doing business in Malaysia that is required to pay WHT under S.109 or S.109B of the Income Tax Act 1967 that do not exceed RM500 per transaction for transactions that recur may submit the WHT form and pay the WHT as follows:

S.109 or S.109B of the Income Tax Act 1967

  • S.109 = Royalty and Interest earned by non-resident

  • S.109B = Special class of income under Section 4A of the ITA including service and rental of moveable property

Others Operational Issue

The above will take effect from 1st August 2022.

The WHT form (CP37 & CP37A) and WHT payment of small value for transactions that recur can be submitted once on or before 31 December for payment transactions made to non-residents between 1 June to 30 November in the current year.

Payers are advised to keep a list of recipients in respect of the small value WHT.

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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)

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Sales Tax (Exemption from Registration) (Amendment) Order 2022

Sales Tax (Exemption from Registration) (Amendment) Order 2022
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Sales Tax (Exemption from Registration) (Amendment) Order 2022

The Royal Malaysian Customs Department has issued the Sales Tax (Exemption From Registration) (Amendment) Order 2022 on 1st September 2022 to replace the 2018 Order. 

Don’t worry, let us summarize it for you. 

Amendment # 1: Definition on Paragraph 2 

2018 Order

  • Whose only have one of the manufacturing operations listed in Schedule A are exempted from registration. 

2022 Order 

  • Whose only have one of the manufacturing operations out of several operations in a manufacturing chain to produce a good and that operation is specified in Schedule A is exempt from registration.; and

  • The person who operates more than one manufacturing operation in Schedule A and manufacturing operations that do not relate in producing a goods is exempt from registration.  

Amendment # 2: Schedule A

Removed Order

  • The incorporation of goods into buildings. 

  • The installation of air conditioners in motor vehicles. 

  • The manufacture of jewellery and goldsmiths wares. 

  • The extraction of gold from mineral ores. 

  • The recovery of gold from jewellery and / or the refining of gold. 

New Order  

  • A cleaning operation by removing dirt or dust without any further operation. 

Amendment Order

  • The developing, printing of photograph, production of film slides or any forms or combination of any of those activities.  

  • Engraving, printing, drawing, writing, embossing or any other similar activities on taxable goods with a description relating to the sports record or other circumstances under which the taxable goods was donated or awarded.  

  • The preparation of foods or drinks by —  

(i) any person who provide services under Group B, First Schedule, Service Tax Regulations 2018 or

(ii) central kitchen for distribution to its premises which provide services under Group B, First Schedule, Service Tax Regulations 2018 

  • Printing, sewing or pasting of logo, knitting, crocheting or embroidering on ready made garments.  

Sources:  

  1. Sales Tax (Exemption from Registration) (Amendment) 2022 [PUA277]

  2. Sales Tax (Exemption From Registration) Order 2018

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RMCD Special Voluntary Disclosure & Amnesty Program (VA) - Update

RMCD Special Voluntary Disclosure & Amnesty Program (VA) - Update
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RMCD Special Voluntary Disclosure & Amnesty Program (VA) - Update

Background of VA

Under the proposed indirect tax amnesty program, taxpayers will be encouraged to voluntarily disclose underpaid or unpaid indirect taxes arising from errors or mistakes made in indirect tax filings or submissions, in exchange for reduced penalties.

Taxpayers who have failed to register and comply with indirect tax filing requirements are also expected to be eligible for the VA.

Key summary of VA

Special Voluntary Disclosure and Amnesty Program (VA) will be implemented with effect from 1 January 2022.

The VA program will be introduced in two (2) phases with penalty remission (with full payment during the said period) :

  • 1 January 2022 to 30 June 2022 : 100% penalty remission

  • 1 July 2022 to 31 December 2022 : 50% penalty remission

What is VA?

The VA program will involve two (2) distinct programs :

1. Voluntary disclosure program : Taxpayers can voluntarily disclose any unpaid or under-reported indirect tax/duty not known or discovered by RMCD under this program.

2. Amnesty program – Taxpayers with any outstanding Bill of Demand (“BOD”) or who have been audited by the RMCD Compliance Division and received audit findings on non-compliance areas can enjoy penalty and tax/duty remissions under this program.

The VA program will cover all indirect taxes administered by RMCD, including Sales Tax, Service Tax, GST, Tourism Tax, Departure Levy, Import Duty, Export Duty and Excise Duty.

Good faith

Voluntary disclosure submitted in good faith will be accepted. No audit will be conducted on the activities and periods involved.

Once the VA period is over, RMDC will enhance enforcement with hefty penalties.

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THK (Secretarial, Account, Payroll, Advisory)

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Covid test tax deduction (update)

Covid test tax deduction (update)
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Covid test tax deduction (update)

Current requirements (remained)

An employer who claims the deduction of the Cost of Detection Test of COVID-19 shall produce: -

A receipt and certification of its employees issued by: -

  •  a registered medical practitioner; or

  •  a medical practitioner registered outside Malaysia; or

Addition requirements (updated)

A receipt and result of the detection test of Covid-19 of its employees issued by a health facility listed by the Ministry of Health Malaysia for the costs of the RT-PCR detection test incurred by its employee.

Where to check the registered medical practitioner?

Visit the official website of Malaysian Medical Council https://meritsmmc.moh.gov.my/search

What can I claim on tax 2023 Malaysia?

What can I claim on tax 2023 Malaysia?
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What can I claim on tax 2023 Malaysia?

Overview

Year 2022 is approaching to its end and now is the time for you to keep and plan on your personal tax.

Do you know what personal deduction can be claimed for year 2022?

With that, here’s the full list of tax reliefs for YA 2022.

Key takeaways:

You will know the Tax Relief and consequences for non-compliance as follows:

1. What types of Personal Tax Relief for YA 2022?

2. What types of donation allowed for deduction?

3. What types of documents are required to be kept?

4. How many years to keep the documents?

5. What are the consequences of non-keeping proper records?

Summary of learning

1. What types of Personal Tax Relief for YA 2022?

- Please refer to the link https://bit.ly/3R1Y6fU to get the full listing.

2. What types of donation allowed for deduction?

  • Gift of money to the Government/ approved institutions;

  • Contribution in fighting against the COVID-19 pandemic; or

  • Gift of money / cost / value of gift of medical equipment to any healthcare facility approved by the Ministry of Health or etc

  • For full information on tax allowable donation for deduction, please refer to the link https://bit.ly/3R1Y6fU.

3. What types of documents are required to be kept?

Receipts and supporting documents for the tax deduction claimed must be kept for future reference and inspection if required from LHDNM.

4. How many years to keep documents?

Must be kept for a period of seven (7) years after the end of the year in which the return form is furnished to LHDNM.

5. What are the consequences of non-keeping proper records?

A RM300.00 – RM10,000.00 fine or imprisonment for a term not exceeding twelve months of both.

Source

a) Public Ruling No. 5/2021 – Taxation of A Resident Individual Part I - Gifts Or Contributions And Allowable Deductions

https://phl.hasil.gov.my/pdf/pdfam/PR_05_2021.pdf

b) Public Ruling No. 5/2000 – Keeping Sufficient Records for Individuals & Partnerships

https://phl.hasil.gov.my/pdf/pdfam/PR5_2000_Rev.pdf

c) Public Ruling No. 6/2000 – Keeping Sufficient Records for Persons Other Than Companies Or Individuals

https://phl.hasil.gov.my/pdf/pdfam/PR6_2000_Rev.pdf

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Tax Incentive for Organising Conferences in Malaysia

Tax Incentive for Organising Conferences in Malaysia
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Tax Incentive for Organising Conferences in Malaysia

Overview

On 29 July 2022, IRB issued Public Ruling (PR) No.2/2022 - Tax incentive for organising conferences in Malaysia. Generally, this PR has explained the tax incentive are available to:

1. Conference promoter promoting and organising conferences in Malaysia as its main activity; and

2. Qualifying person whose main activities are other than promoting and organising conferences in Malaysia. In simple words, the nature of business is not related to promoting and organising conferences. For instance, a manufacturing company.

Key takeaways:

You will understand: -

1. What is the tax incentive?

2. How to become an eligible conference promoter and qualifying person?

3. Differences between conference promoter and qualifying person?

4. Requirement of separate account?

Summary of learnings:

1. What is the tax incentive?

The tax incentive is given to eligible conference promoter and qualifying person.

The exemption is on 100% of the statutory income derived from organising conferences held in Malaysia in the relevant year of assessment.

2. How to become an eligible conferences promoter and qualifying person?

Brought in at least 500 foreign participants to attend conferences held in Malaysia in the year assessment.

3. Differences between conferences promoter and qualifying person

i) Under Income Tax (Exemption) (No.53) Order 2000 [P.U. (A) 500/2000], an eligible conference promoter must be a resident company, an association, or an organisation whose main activities are promoting and organizing conferences in Malaysia.

The period of exemption is effective from the year of assessment 1997 onwards.

ii) Whereas under Income Tax (Exemption) (No.4) Order 2021 [P.U. (A) 195/2021], a qualifying person which is a resident company, an association, or an organisation that carries on business not related to the activity of promoting and organizing conference is also eligible to enjoy the tax incentive.

The period of exemption is effective from the year of assessment 2020 until 2025.

4. Separate accounts

A separate account is required to be maintained for the income exempt under both P.U.(A) 500/2000 or P.U.(A) 195/2021.

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Tax on digital currency Malaysia

Tax on digital currency Malaysia
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Tax on cryptocurrency Malaysia Part 2

IRB has issued the Guideline on Tax Treatment of Digital Currency Transactions dated 26 August 2022.

Key issues in the guideline include :

Taxability

Crypto transactions fall under the scope of Malaysia income tax if

  • the key activities and operation business operations are performed in Malaysia or

  • where there is a business presence in Malaysia

Summary of Tax on Digital Currency

  • Trading of digital currencies - Profit from the business of trading is taxable .

  • Mining of digital currencies- Profits from the mining of digital currencies are subject to income tax if the mining activity is carried out with a profit-seeking motive.

  • Business transactions carried out using digital currency- Record based on the open market value of the underlying goods or services in RM.

  • Realisation of digital currencies from business transaction- The tax treatment of the subsequent disposal of the digital currency received will depend on the analysis of the capital and revenue (ie badge of trade)

  • Realisation of digital currencies investment-The tax treatment will depend on the analysis of the capital and revenue (ie badge of trade).

  • Free distribution - The mere purchase of digital currencies as a result of free distribution/spitting is not taxable.

  • Exchange of digital currencies -The tax treatment will depend on the analysis of the capital and revenue (ie badge of trade)

Past Blog on tax on cryptocurrency Malaysia

https://www.ktp.com.my/blog/tax-on-cryptocurrency-malaysia/05sept2022

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What is Automation Capital Allowance (ACA) ?

What is Automation Capital Allowance (ACA) ?
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What is Automation Capital Allowance (ACA) ?

Overview of ACA :

After the opening of international borders, Malaysia is facing a serious manpower situation, thus, Automation machines may become one of the solutions for manufacturing companies to overcome the workforce issue.

The Automation Capital Allowance (Automation CA) was introduced to encourage the adoption of automation among manufacturing companies. In budget 2020, the Government extended the period for the incentive in both categories. The effective date of application is from 1 Jan 2015 until 31 Dec 2023.

Key takeaways:

1. How does the incentive work?

2. Who is eligible to claim?

3. Application procedures

4. Thing to take note

Summary of learnings:

1. What type of incentive?

A. Labour-intensive industries (rubber products, plastics, wood, furniture, and textiles)

- Automation Capital Allowance of 200% on the first RM4 million expenditure incurred within assessment from 2015 to 2023

B. Other Industries

- Automation Capital Allowance of 200% on the first RM2 million expenditure incurred within assessment from 2015 to 2023

2. Who is eligible to claim?

I. Manufacturing companies incorporated under the Companies Act, 1965 / 2016

II. Resident in Malaysia

III. Valid Business License and Manufacturing License

IV. The Company has been in operation as manufacturing activities for 36 months

V. Automation machine/equipment is used directly in the manufacturing activities

3. Application process:

I. Submit the ‘Automation CA Form’ to MIDA

II. MIDA evaluation and SIRIM site visits regarding technical verifications

III. MIDA issues a ‘Consideration Letter’ as approval

4. Things to take note:

A. The incentive is mutually exclusive to other incentives; thus, Company can only enjoy one of the incentives including Automation CA, Reinvestment Allowance (RA), Pioneer Status (PS), Investment Tax Allowance (ITA), or Allowance for Increased Exports (AIE)

B. If Company is claiming RA, it also can opt to claim Automation CA. However, the company must utilize the full amount of Automation CA before it continues to claim RA and the period of RA will continue even if the Company has opted for Automation CA.

Sources:

- Guidelines and Procedures for the application of Automation Capital Allowance

https://www.mida.gov.my/wp-content/uploads/2021/01/GD_ACA_14012021.pdf

 

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Tax Incentives in Agriculture Industry

Tax Incentives in Agriculture Industry
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Tax Incentives in Agriculture Industry

Under the Promotion of Investments Act 1986, the term ''company” in relation to agriculture includes:

  • agro-based cooperative societies and associations

  • sole proprietorships and partnerships engaged in agriculture.

Companies producing promoted products or engaged in promoted activities are eligible to apply for the following incentives:

Pioneer Status

As in the manufacturing sector, companies producing promoted products or engaged in promoted activities are eligible for Pioneer Status.

Investment Tax Allowance (ITA)

Companies producing promoted products or engaged in promoted activities can apply for Investment Tax Allowance (ITA). To enable agricultural projects to enjoy greater benefits, the Government has broadened the definition of qualifying capital expenditure to include the following:

  • the clearing and preparation of land;

  • the planting of crops;

  • the provision of plant and machinery used in Malaysia for the purposes of crop cultivation, animal farming, aquaculture, inland or deep-sea fishing and other agricultural or pastoral pursuits;

  • the construction of access roads including bridges, the construction or purchase of buildings (including those provided for the welfare of persons or as living accommodation for persons) and structural improvements on land or other structures which are used for the purposes of crop cultivation, animal farming, aquaculture, inland fishing and other agricultural or pastoral pursuits. Such roads, bridges, buildings, structural improvements on land and other structures should be on land forming part of the land used for the purpose of such crop cultivation, animal farming, aquaculture, inland fishing and other agricultural or pastoral pursuits.

In view of the time lag between start-up of the agricultural project and processing of the produce, integrated agricultural projects are eligible for ITA for an additional five years for expenditure incurred for processing or manufacturing operations.

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Tax on cryptocurrency Malaysia

Tax on cryptocurrency Malaysia
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Tax on cryptocurrency Malaysia

Badge of trade

Determining the existence of trade The general tax treatment for transaction gain / loss from the disposal of digital currencies is based on whether it is capital or revenue in nature.

The badges of trade such as profit seeking motive, nature of asset and changes to the asset are considered when determining if such gains are taxable. The followings are considerations in deciding whether elements of trade exist for transactions involving digital currencies:

1. Nature of subject matter

This refers to the nature of the digital currencies that is being bought and sold. The digital currencies could be regarded as the subject of trading when they are bought in large quantities.

2. Length of ownership

This refers to the holding period of the digital currencies. The shorter the holding period, the more likely it would be regarded as held for trading.

3. Frequency of transactions

High frequency of similar transactions of digital currencies is more indicative of trading than an isolated transaction.

4. Supplementary work

This refers to additional work done on digital currencies to make it more marketable or extra effort made to find or attract purchasers. If this is done, it is more likely that the subsequent disposal would be regarded as trading.

5. Circumstances of the realization

Some circumstances are less likely to indicate trading (e.g. company is forced to sell the digital currencies due to compulsory acquisition, sudden urgent need of cash or threat of foreclosure by creditors).

6. Motive

This refers to whether there was an intention to trade at the time of the acquisition of the digital currencies. If a person undertake the activities in a business-lime manners such as developing a business plan, preparing accounting records and advertising the digital currencies business, the intention is definitely to do a business of digital currencies.

7. Mode of financing

This refers to how the purchase of the digital currencies is being financed. Short term financing is more indicative of trading than long term financing. The company’s financial position and ability to hold on to the digital currencies will also be taken into consideration.

Source

IRB Guideline on tax treatment on digital currency transactions @ 26/8/2022

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Agriculture Allowance

Agriculture Allowance
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Agriculture Allowance

Are agriculture companies entitled to any tax incentives?

Agriculture allowance

A taxpayer who incurred Qualifying Agriculture Expenditure is entitled to claim Agriculture Allowance.

Qualifying Agriculture Expenditure

1. Clearing and preparation of land

2. New planting (exclude replanting) either:

a) new crop of any product

b) replace old crops with a crop of a different type

3. Construction on a farm of a road or bridge

4. Construction on a farm of a building either:

a) used in working of farm

b) welfare of persons

c) living accommodation

5. Schedule of Agriculture Allowance

Non-Qualifying Agriculture Expenditure

1. Cost of land

2. Cost of plant and machinery used in the farm

Agriculture Charges (Disposal)

1. If disposal within 5 years: agriculture charge equal = allowances claimed in prior years

2. If disposal made after 5 years: no agriculture charge will be made

Source

Reference: Public Ruling No. 1/2016 Agriculture Allowance

https://phl.hasil.gov.my/pdf/pdfam/PR_01_2016.pdf

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Tax Deduction on Payment to Release Bumi Lot

Tax Deduction on Payment to Release Bumi Lot
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Tax Deduction on Payment to Release Bumi Lot

Do you know there are 6 deciding case law in high court from 2020 to 2021 on the tax appeal regarding payment to release bumi lot.

Today we cover one recent Court of Appeal case namely DIRECTOR GENERAL OF INLAND REVENUE vs TAMAN EQUINE (M) SDN BHD which overturn High Court decision.

Lesson from Tax Case:

The tax treatment of application expenses incurred to release the Bumiputera quota units by a housing developer.

Background information

Taman Equine (M) Sdn Bhd (The Company) is a housing developer.

The Company has incurred expenses to apply to State Government to release the Bumiputera quota units.

Tax Issue:

Are expenses incurred for the release of the Bumiputera quote units allowable for tax deduction?

The Company’s opinion:

The application of the release the Bumiputera quota units is necessary else the Company would not be able to generate its income. Thus, the expenses incurred for the business expenses under section 33(1) ITA 1967.

IRB argument:

The expenditures in question were not eligible for deduction under Section 33(1) of the ITA for the following reasons:

a) the cost incurred is a penalty in nature and

b) not wholly and exclusively incurred for the purpose of producing the gross income.

The decision by The Court of Appeal

The Company expenses were not allowed for deduction due to the following reason:

a) the nature of the payment is a penalty for breach of a condition imposed by the State Government.

b) it does not form part of the taxpayer’s income-producing activity.

c) the expenses incurred are for the purpose of bringing into existence an advantage in terms of procuring permission/consent from the state authority for the permanent benefit of the business

d) it is capital in nature and prohibited under section 39(1) ITA 1967.

Source:

https://phl.hasil.gov.my/pdf/pdfam/KPHDN_v_TAMAN_EQUINE_17062022.pdf

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Small Value Withholding Tax Payment

Small Value Withholding Tax Payment
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Small Value Withholding Tax Payment

 

An individual/body resident in Malaysia or doing business in Malaysia that is required to pay WHT under S.109 or S.109B of the Income Tax Act 1967 that do not exceed RM500 per transaction for transactions that recur may submit the WHT form and pay the WHT as follows:

(See above)

S.109 or S.109B of the Income Tax Act 1967

  • S.109 = Royalty and Interest earned by non-resident

  • S.109B = Special class of income under Section 4A of the ITA including service and rental of moveable property

Others Operational Issue

The above will take effect from August 2022.

IRBM is in the process of preparing the special WHT forms for the purposes of the above.

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CP 21 Form LHDN

CP 21 Form LHDN
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Update CP 21 form

Tax Quiz: IRB CP 21 & CP 22 is applicable to :

A. All employees

B. Chargeable employees

C. Don't know

Read our past social media posting on CP21 & CP 22 as below :

1. Tax Responsibility Employer – dated 14/04/2022

https://bit.ly/3QHAgpL

2. IRB Latest Operasi on CP 21, CP 22 & CP22A – 11/04/2022

https://bit.ly/3dkGbCQ

3. Calling HR/Account dated – 29/12/2021

Do it before 31 December 2021 on your newly recruited & resigned employees in your company as IRBM ...

https://bit.ly/3phhiuy

4. Are you ready for ''payroll'' tax from IRB? dated on 13/10/2021

https://bit.ly/3PoWFr3

5. 为什么所得税发布 2021 年 10 月 1 日 发布雇主审计框架 (Audit Framework for Employers) ? dated 7/10/2021

https://bit.ly/3QAcNHc

6. Beware taxpayers! Dated 23/7/21

https://bit.ly/3Pr4fRX

7. e-SPC via the MyTax link (by employers only) 23/2/21

https://bit.ly/3QrLOOr

8. With effect from 1/1/2021, IRB has changed new forms on 12/1/21

https://bit.ly/3QiNp97

9. 8 out 10 HR don’t do this for IRB (According to our experience) 21/12/20

https://bit.ly/3JVp07c

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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, Bookkeeping, Payroll, Advisory)

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

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What is the tax treatment for income tax borne by the employer?

What is the tax treatment for income tax borne by the employer?
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What is the tax treatment for income tax borne by the employer?

Perquisite

Perquisite, in relation to employment, means benefits in cash or in kind that are convertible into money received by an employee from the employer or third parties in respect of having or exercising the employment.

What does tax borne by employer mean?

Do employers pay income tax for employees?

No, employers do not pay income taxes for their employees. Employees are solely responsible for income tax payments, which employers must withhold.

What if? There is good employer who pays employee tax?

The agreement by the employer to pay the income tax of the employee does not relieve the employee from tax liability on the amount of income tax borne by the employer.

'Income Tax is borne by employer' is a form of income and is chargeable based on Section 13(1)(a) of the ITA 1967.

In short, tax borne by the employer is a taxable perquisite to the employee.

Source :

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  • 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, outsourcing 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 vacancies in Johor Bahru for interns, graduates & experienced candidates.

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IRB New Public Ruling 2022

IRB New Public Ruling 2022
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IRB New Public Ruling 2022

Public Ruling 2/2022 - Tax Incentive for Organising Conference in Malaysia

This PR is the 1st edition and the objective of this PR is to provide an explanation on the tax incentive available to conference promoter promoting and organising conferences in Malaysia as its main activity and

Public Ruling 3/2022 - Taxation of Foreign Fund Management Company

This PR is the 3rd edition and it replaces the PR No.7/2019dated 3 December 2019 with new updates and amendments.

Source

PR 2/2022 Tax Incentive For Organising Conferences In Malaysia

https://phl.hasil.gov.my/pdf/pdfam/PR_02_2022.pdf

PR 3/2022 Taxation Of Foreign Fund Management Company

https://phl.hasil.gov.my/pdf/pdfam/PR_03_2022.pdf

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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, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing 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 vacancies in Johor Bahru for interns, graduates & experienced candidates.

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What is tax corporate governance framework LHDN?

What is tax corporate governance framework LHDN?
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What is tax corporate governance framework?

A strong tax governance framework establishes the techniques and processes within the organisation to identify tax risks, assess risks and sets out the appropriate actions to mitigate the impact of those tax risks.

Objective of TCGF

The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company. Corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies.

Background

The Inland Revenue Board (IRB) has launched the Tax Corporate Governance (TCG) Framework during the opening ceremony of the IRB's 26th Hari HASiL celebration and has recently published the TCG Framework and the TCG Guidelines. The introduction of the TCG Framework is part of the IRB’s initiative towards adopting a co-operative tax compliance that is both fair and effective in Malaysia.

Benefits of TCGF

Organisations will be able to enjoy the following benefits upon their participation in the TCG Programme :

I. Reduced scrutinization of compliance activities.

  •  Lesser tax audits will be conducted.

  •  Higher materiality or reduced sample size.

II. Expedite tax refunds.

 Accelerate tax refund process for compliant participants, provided no anomalies are

noted the best endeavour will be given to expedite refunds.

III. Appointment of a dedicated tax officer.

 A single point of contact between the taxpayer and the IRBM.

IV. Expedite any ongoing dialogue on technical matters.

  •  Priority consideration

  •  Eligible to be granted priority consideration for compliant participants, which are:

- Consideration will be given accordingly in respect of tax penalty rates.

- Step down of compliance activities.

TCGF at a glance

TCG is suitable for all sizes and types of businesses that give priorities and resources to corporate governance matters.

TCG Programme is currently being implemented as a pilot project. However, the interested organisations are advised to adopt and execute the framework.

TCG in Malaysia is currently being implemented as a pilot project. Therefore, selected organisation will receive an invitation from IRBM to join the programme.

Other interested organisations may contact IRBM via tcg@hasil.gov.my to communicate their interest.

Once an organisation is accepted into the programme, the TCG status will be valid for 3 years subject to terms and conditions stated in the offer.

There will be no fees charged to participate in the programme.

These expenses are capital in nature and not allowable for tax deduction under subsection 33(1) ITA 1967.

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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, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing 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 vacancies in Johor Bahru for interns, graduates & experienced candidates.

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Benefits of Malaysia Digital

Benefits of Malaysia Digital
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MSC Malaysia is now rebranded to Malaysia Digital (MD) Part 3

Benefits of MD

MD Status companies are eligible to access orapply for, amongst others:

1. Foreign knowledge worker quota and passes;

2. Tax incentives (income tax exemption or investment tax

allowance);

3. Multimedia/ICT equipment import duty and sales tax exemption;

4. Competitive and ready infrastructure for business available at

MD Cybercities/Cybercentres;

5. Freedom of ownership by exempting from local ownership

requirements;

6. Flexibility to source capital and funds globally; and/or

7. MDEC as the one-stop agency for MD Status companies.

Other Benefits

MD Status companies are also eligible to access facilitation of other benefits

such as:

1. Access to local and international market and ecosystem;

2. Business matching and partnership;

3. Grant and funding facilitation; and/or

4. Participation in MD catalytic programmes.

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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, outsourcing 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 vacancies 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)

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+6012-771 7903 (Secretary Department)
+6012-771 7803 (Account Department)
+607-361 3443

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