Tax Treatment of Accrued Interest or Profit Payable to Bank or Financial Institutions during the Moratorium Period
Tax Treatment of Accrued Interest or Profit Payable to Bank or Financial Institutions during the Moratorium Period The loan moratorium is one of the Government’s financial aid measures introduced under the Prihatin Rakyat Economic Stimulus Package (PRIHATIN) from 1 April 2020 until 30 September 2020. It is an offer for deferment or temporary suspension of […]
Income Tax (Relocation of Provision of Services Business Incentive Scheme) Rules 2022
Income Tax (Relocation of Provision of Services Business Incentive Scheme) Rules 2022 In order to encourage companies relocating their manufacturing operations to Malaysia and undertake new investments, effective from Year of Assessment (“YA”) 2021, a qualifying company that performs qualifying activities under this incentive scheme is eligible for the following income tax rate charged on […]
Minimum Transfer Pricing Documentation Template : Ensure Compliance with the Latest Updates 2022
Minimum Transfer Pricing Documentation Template Date of Publication: 11 November 2022 The objective of the Malaysian Transfer Pricing Guidelines (“TP Guidelines”) is to explain the provision of Section 140A in the Income Tax Act 1967 (“ITA”) and the Transfer Pricing Rules 2012. This TP Guideline applies to the transactions between the associated persons based on […]
Employment Income Guidelines in Malaysia: Understanding the Types of Employment Income under the Income Tax Act 1967
Employment Income Guidelines in Malaysia: Understanding the Types of Income Taxable under the Income Tax Act 1967 In accordance to s4(b) of Income Tax Act 1967, there are several gains and profits from an employment, which includes salaries, wages, bonuses, commissions, and other monetary benefits. However, it’s not just limited to monetary remuneration – benefits in […]
Income Tax (Exemption) (No. 6) 2020 (Amendment) Order 2022 – Latest Update on New Food Production Project or an Expansion Project
Income Tax (Exemption) (No. 6) 2020 (Amendment) Order 2022 Latest Update on New Food Production Project or an Expansion Project This Order is deemed effective from 1 January 2016 except for paragraph 4 relating to the new sub subparagraphs 5A(1)(f) and (g) of the Income Tax (Exemption) (No. 6) Order 2020 [P.U. (A) 373/2020] which […]
Income Tax (Deduction for Investment in Approved New Food Production Project) Rules 2022
Income Tax (Deduction for Investment in Approved New Food Production Project) Rules 2022 Deemed effective from 1 January 2021, this order shall apply to a resident company incorporated in Malaysia that has made an investment in its related company undertaking an approved new food production project under the Income Tax (Exemption) (No. 6) Order 2020 […]
Public Ruling No. 4/2022 : Recovery from Person Leaving Malaysia
Public Ruling No. 4/2022: Recovery from Person Leaving Malaysia The objective of Public Ruling No. 4/2022 – Recovery from Person Leaving Malaysia is to explain the circumstances and procedures for recovering taxes and debts due from taxpayers who will be leaving Malaysia. Director General (DG) of Inland Revenue Board Malaysia (IRBM) may issue a travel restriction […]
Understanding the Derivation of Employment Income in Malaysia
Understanding the Derivation of Employment Income in Malaysia Under what circumstances, the employment income would be taxed in Malaysia? – The employment income would only be taxed in Malaysia if the employment income is deemed derived from Malaysia under Section 13(2) and Section 13(3) of Income Tax Act 1967. What is Section 13(2) of the […]
Labuan Entities with Dormant Status: Guidelines on Tax Treatment
Labuan Entities with Dormant Status: Guidelines on Tax Treatment The objective of this guideline is to provide clarification on the tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445] as prescribed through the Labuan Investment Committee (LIC) Pronouncement 1-2019 and 2-2019 dated 19 June 2019 and […]
Understanding Employment: Differences between Contract for Services and Contract of Services
Understanding Employment: Differences between Contract for Services and Contract of Services Having a comprehensive understanding of the legal definition of employment, including the distinction between a contract of service and contract for service, is essential for both employers and employees alike. This is because it establishes the parameters of the relationship between them, including the […]
