Overview of Withholding Tax and How Double Taxation Agreement Works
[vc_row][vc_column][vc_column_text] Introduction of Withholding Tax Withholding tax is an amount withheld by a party making payment (also known as the payer) on the income earned by a non-resident (also known as the payee) and pay the amount withheld to the Inland Revenue Board of Malaysia. As Malaysia is taxed on territorial basis, any income derived […]
Are You Subject to Service Tax in Malaysia?
[vc_row][vc_column width=”1/2″][vc_video link=”https://youtu.be/cgt9_i_TSvI?list=PLh_FME0Uc978pkuaEAfJBccX8rfJXRXCU”][vc_column_text]Please take note : With effective 1 September 2019, The Royal Malaysian Customs Department has further increased Food and Beverage’s industry’s threshold to RM1,500,000. If you need further information and assistance, please contact us. [/vc_column_text][/vc_column][vc_column width=”1/2″][vc_column_text] Registration of Service Tax Any person who carries on a business of providing taxable service and exceeds the […]
Sole Proprietor’s and Partnership’s Taxes
[vc_row][vc_column][vc_column_text] Tax Liability Upfront tax estimation In Malaysia, the tax authority collect taxes from sole proprietorship and partnerships upfront. The upfront tax estimate will be payable bi-monthly in 6 instalments. You will receive a letter from the tax authority, the CP500, informing you of the amount of taxes which you need to pay. Each year, […]
How to be a Tax Resident in Malaysia
[vc_row][vc_column][vc_column_text]Residence status is a very important question one has to question regardless whether you are a Malaysian or foreigner. It determines an individual’s liability to Malaysia income tax. Year of Assessment (YA) for Individual Liability to tax is determined on a year to year basis, i.e. 1 January to 31 December every year. The Basic […]
What Is Capital Allowance and Industrial Building Allowance? How to Claim Them?
[vc_row][vc_column][vc_column_text] Capital Allowance (CA) When it comes to tax computation, we know that capital expenditure is not deductible for tax. Thus, depreciation of an asset is never a tax-deductible item. The purpose of capital allowance is to give relief for wear and tear of fixed assets, and it is granted in place of depreciation that […]
What Is Labuan?
[vc_row][vc_column][vc_column_text]With effect from the Year of Assessment 1991, Labuan Offshore business activity act 1990 was introduced. It creates what is perceived as a tax haven for Labuan companies carrying on business in or from Labuan. In the year 2010, the principal act has been renamed to be known as Labuan Business Activity Tax Act 1990. […]
What Is Investment Holding Company (IHC)?
[vc_row][vc_column][vc_column_text] Introduction of Investment Holding Company (IHC) With reference to public ruling 3/2011, investment holding company means a company whose activities consist mainly of holding of investments, with not less than 80% of its gross income is derived from the investment held. It is really important to note that gross income from business of holding […]
Overview of Malaysian Corporate Income Tax
[vc_row][vc_column width=”1/2″][vc_video link=”https://youtu.be/ehJWz5evRbQ”][/vc_column][vc_column width=”1/2″][vc_column_text] Residence Status When preparing corporate income tax, it is important to determine the status of the company whether it is resident or non-resident because the rate of the corporate income tax will be different. s.8(1)(b) of the Income Tax Act refers to a resident status of a company. A company is […]
Real Property Gain Tax (RPGT): Capital vs Trading
[vc_row][vc_column][vc_column_text] Capital or Revenue Tax The conceptual difference between capital and revenue tax is that tax paid on income earned from wages, rent, interest and business are termed as revenue tax whereas capital tax is generally referred to tax paid on sale or exchange of an asset such as stock or property. There is no […]
Protecting Employees under Employment Insurance System (EIS)
[vc_row][vc_column width=”1/2″][vc_video link=”https://www.youtube.com/watch?v=stagLIuZgW0″][/vc_column][vc_column width=”1/2″][vc_column_text] Objectives of Employment Insurance System (EIS) EIS was first implemented in January 2018 and administered by the Social Security Organization or SOCSO. The EIS seeks to provide temporary financial assistance for up to six months to workers who are retrenched. It also aims to provide extended welfare coverage and aid in […]
