Malaysia Sole Proprietor & Partnership Tax: Basis Period, CP500 & Penalties
Malaysia Sole Proprietor & Partnership Tax: Basis Period, CP500 & Penalties Introduction If you run a sole proprietorship or partnership in Malaysia, you must understand how the Malaysia Sole Proprietor Partnership Tax works, including the basis period, CP500 instalments, and possible penalties under Section 107B of the Income Tax Act. 1. Basis Period for Sole […]
Malaysia R&D Double Deduction and Single Deduction
Introduction Malaysia R&D double deduction is a tax incentive provided under the Income Tax Act 1967 (ITA) to encourage innovation. Companies conducting qualifying research and development (R&D) activities may claim either a single deduction or a double deduction for approved expenditures. These incentives reduce taxable income while supporting scientific and technological growth. Types of R&D […]
Malaysia Export Incentives: Tax Exemptions & Deductions
Introduction Malaysia export incentives are designed to encourage the growth of manufactured goods and agricultural exports. These incentives, granted under the Income Tax Act 1967, provide tax exemptions, double deductions, and allowances for qualifying exporters. Businesses that qualify can reduce their tax burden significantly while expanding into new markets. Key Export Incentives in Malaysia Allowance […]
Sales Tax Registration: Threshold Malaysia Explained
Introduction The sales tax registration threshold Malaysia is set at RM500,000 under the Sales Tax Act 2018. Manufacturers of taxable goods must register once this limit is reached, with clear rules on liability, voluntary registration, cessation, and exemptions. Threshold to Register Historical Method If the total sale value of taxable goods exceeds RM500,000 within the […]
Malaysia Business Income Tax: Definition & Commencement Rules
Malaysia Business Income Tax: Definition & Commencement Rules Introduction Under Malaysia’s Income Tax Act (“ITA”) 1967, business income forms a major source of taxable income. Understanding what qualifies as a “business” and when it is deemed to have commenced is crucial for proper tax compliance and planning. 1. What is “Business” under the ITA 1967? […]
Malaysia Outgoings and Expenses: Deductible vs Non-Deductible
Introduction Malaysia outgoings and expenses rules determine which business costs are deductible for tax purposes. Understanding deductible vs non-deductible expenses, accrual of expenses, and relevant case law is crucial for proper tax compliance. Deductible Outgoings and Expenses Expenses wholly and exclusively incurred in producing gross income (accrual basis) include: Interest on borrowed money. Rent payable. […]
