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UN Sustainable Development Goals Part 2

UN Sustainable Development Goals Part 2
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UN Sustainable Development Goals Part 2

UN SDG 17

The UN Sustainable Development Goals were launched in 2012 and finalised in 2015. They represent an international consensus on conditions under which humanity can thrive.

The UN SDGs set out a path to end extreme poverty, fight inequality and injustice, and protect the planet.

The United Nations 17 SDGs are a globally agreed framework for all countries to achieve by 2030 that sets out the building blocks of a new type of inclusive prosperity creation.

SDG 7 : Affordable and Clean Energy

Sustainable Development Goal 7 (SDG7) calls for “affordable, reliable, sustainable and modern energy for all” by 2030. It's three core targets are the foundation for our work: Ensure universal access to affordable, reliable and modern energy services.

 

SDG 8 : Decent Work and Economic Growth

SDG 8 recognises the importance of sustained economic growth and high levels of economic productivity for the creation of well-paid quality jobs, as well as resource efficiency in consumption and production.

 

SDG 9 : Industry Innovation and Infrastructure

Goal: Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities by 2030.

 

SDG 10 : Reduced Inequalities

Sustainable Development Goal 10 aims at reducing inequality within and among countries. This SDG calls for reducing inequalities in income as well as those based on age, sex, disability, race, ethnicity, origin, religion or economic or other status within a country.


SDG 11 : Sustain Cities and Communities

SDG 11 aims to renew and plan cities and other human settlements in a way that offers opportunities for all, with access to basic services, energy, housing, transportation and green public spaces, while reducing resource use and environmental impact.

SDG 12 : Responsible Consumption and Production

Sustainable Development Goal 12 encourages more sustainable consumption and production patterns through various measures, including specific policies and international agreements on the management of materials that are toxic to the environment.

SDG 13 : Climate Action

SDG 13 intends to take urgent action in order to combat climate change and its impacts. The contributing countries to this SDG are making plans to prioritize food security and production, terrestrial and wetland ecosystems, freshwater resources, human health, and key economic sectors and services.

SDG 14 : Life Below Water

SDG 14 targets seek to prevent and reduce marine pollution; further the sustainable management and protection of marine and coastal ecosystems; address the impacts of ocean acidification; regulate harvesting and end overfishing, illegal, unreported and unregulated fishing and destructive fishing practices.

SDG 15 : Life On Land

Goal 15 focuses specifically on managing forests sustainably, halting and reversing land and natural habitat degradation, successfully combating desertification and stopping biodiversity loss.

SDG 16 : Peace, Justice and Strong Institutions

Goal 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels. Significantly reduce all forms of violence and related death rates everywhere.

SDG 17 : Partnership for the Goals

SDG 17 calls for a global partnership for sustainable development. The goal highlights the importance of global macroeconomic stability and the need to mobilise financial resources for developing countries from international sources, as well as through strengthened domestic capacities for revenue collection.

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UN Sustainable Development Goals Part 1

UN Sustainable Development Goals Part 1
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UN Sustainable Development Goals

Why is it important to talk about sustainability?

The fundamental fact underlying the whole topic is this: over the last century the population of the Earth increased from 1.5 to 7 billion people. Thus, building an inclusive, sustainable and resilient future for all people and our planet has become a big challenge for humanity.

What is sustainability?

It is defined as “Meeting the needs of the present without compromising the ability of future generations to meet their own needs.”

UN SDG 17

The UN SDGs set out a path to end extreme poverty, fight inequality and injustice, and protect the planet. Achieving the goals will require an unprecedented effort by all sectors in society, including businesses.

SDG 1 : No Poverty

SDG 1 is to: ''End poverty in all its forms everywhere''. Achieving SDG 1 would end extreme poverty globally by 2030. The goal has seven targets and 13 indicators to measure progress.

 

SDG 2 : Zero Hunger

Goal 2 seeks sustainable solutions to end hunger in all its forms by 2030 and to achieve food security. The aim is to ensure that everyone everywhere has enough good-quality food to lead a healthy life. Achieving this Goal will require better access to food and the widespread promotion of sustainable agriculture

 

SDG 3 : Good Health and Well Being

SDG 3 aims to prevent needless suffering from preventable diseases and premature death by focusing on key targets that boost the health of a country's overall population. Regions with the highest burden of disease and neglected population groups and regions are priority areas.

 

SDG 4 : Quality Education

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.


SDG 5 : Gender Equation

Achieve gender equality and empower all women and girls. Gender equality is not only a fundamental human right, but a necessary foundation for a peaceful, prosperous and sustainable world.

SDG 6 : Clean Water & Sanitation

Ensure access to water and sanitation for all. While substantial progress has been made in increasing access to clean drinking water and sanitation, billions of people—mostly in rural areas—still lack these basic services.

To be continue

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EPF return to 11%

EPF return to 11%
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EPF back to 11%

Background

With effective 1st January 2021 after the Budget 2021, employees have the option to reduce their EPF statutory contribution rate from 11% to 9%. This rate for employees will be in effect from January 2021 wages (February 2021 contribution) up to June 2022 (July 2022 Contribution) wages.

Why 9%

“The government understands the challenges faced by the people due to prolonged lockdowns and to increase cash in hand, EPF will extend the minimum contribution rate from 11% to 9% until June 2022.'' says Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Borang KWSP 17A for 11% contribution

The reduced rate is default for all employees under 60 years old.

Should an employee choose to remain at 11% contribution rate, they'll need to fill up Borang KWSP 17A (Khas 2022) which will then be submitted to EPF by their respective employer. For those aged 60 and above, the statutory contribution remains at the existing rate.

Upon receiving the completed Borang KWSP 17A (Khas 2022) form from the employees, employers will need to register the application via the i-Akaun (Employer) and keep the completed Borang KWSP 17A (Khas 2022) form as a record.

Back to EPF 11%

The minimum statutory EPF contribution rate for employees returns to 11% from July 2022 wages onwards (August 2022 contribution)

Source:

https://www.kwsp.gov.my/en/belanjawan-2021#Reduction-Statutory-Contribution-Rate

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Accounting for government grants

Accounting for government grants
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MPERS vs MFRS : Government Grants

In this article, we share the main differences in the accounting requirements for associates under MFRS 120 and Section 24 of MPERS.

Government Grants

Government grants are assistance by the government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity.

They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with the government which cannot be distinguished from the normal trading transactions of the entity.

Section 24 of MPERS - Government Grants

Use income approach as all government grants are income transactions.

If there is no specified future performance condition imposed, the grant is recognized upon receivable.

If there is a specified future performance condition imposed, the grant is recognized when the condition is met.

Government grants are measured at the fair value of the assets received or receivable.

MFRS 120 Government Grants

Use income approach as all government grants.

Conditions :

1. The entity will comply with the conditions imposed.

2. The grants will be received.

Recognise grants in P/L on a systematic basis over periods in which the entity recognise the related costs.

Non-monetary grants is measured by

  1. The fair value of assets received.

  2. Nominal amount paid

 

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Accounting for intangible assets

Accounting for intangible assets
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MPERS vs MFRS : Intangible Assets

In this article, we share the main differences in the accounting requirements for associates under MFRS 138 and Section 18 of MPERS.

Intangible Assets

An item meets the definition of intangible asset if it poses the three criteria:

  • Identifiability.

  • Control over resources.

  • Existence of future economic benefits (or service potential).

An intangible asset is an identifiable non-monetary asset without physical substance. Such an asset is identifiable when it is separable, or when it arises from contractual or other legal rights. Separable assets can be sold, transferred, licensed, etc.

Examples of intangible assets include computer software, licences, trademarks, patents, films, copyrights and import quotas.

Section 18 of MPERS - Intangible Assets

Research and development expenditures should be recognized as expenses.

All internally generated intellectual property should be recognized as an expense.

MFRS 138 - Intangible Assets

Development expenditure of R&D activities that meet the recognition criteria must be capitalize.

All research and other development expenditure are recognized as an expense.

Internally generated intellectual property should not be recognized as an asset.

An entity is to recognise an intangible asset only if the two criteria are met:

1. It is probable that the expected future economic benefits (or service potential) will flow to the entity; and

2. It can measure the cost or fair value of the asset reliably.

MFRS 138 allow an entity to capitalise expenditure from the development phase if it can demonstrate all of the following conditions:

  • The technical feasibility of completing the intangible asset so that it will be available for use or sale.

  • Its intention to complete the asset and use or sell it.

  • Its ability to use or sell the intangible asset.

  • How the intangible asset will generate probable future economic benefits or service potential.

  • The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.

  • Its ability to measure reliably the expenditure attributable to the intangible asset during its development.

MFRS 138 provide an accounting policy choice to subsequently measure an intangible asset either using the cost model or the revaluation model.

MFRS 138 states that intangible assets may have a finite or indefinite useful life. This requires an entity to assess and determine useful life. An intangible asset with indefinite useful life is not amortised but must be tested for impairment annually.

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Accounting in Associates

Accounting in Associates
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MPERS vs MFRS : Associates

In this article, we share the main differences in the accounting requirements for associates under MFRS 128 and Section 14 of MPERS.

Associates

Investment in associate refers to the investment in an entity in which the investor has significant influence but does not have full control like a parent and a subsidiary relationship. Usually, the investor has a significant impact when it has 20% to 50% of shares of another entity.

Section 14 of MPERS - Associates

Measure investment in associates

  • The cost model

    Investment is measured at cost less impairment. The quoted associate must be measured at fair value.

  • The equity method

    No exception for temporary investment and for conditions of severe restriction.

  • The fair value model

    Investment is measured at fair value through profit and loss. Any investment which is impracticable to measure fair value must be measured using the cost model.

When an associate becomes a subsidiary or joint venture, a remeasurement is required with gain or loss recognized in P/L account

MFRS 128 - Associates

Measure investment in associates under the equity method in the consolidated financial statements.

No exception for temporary investment and for conditions of severe restriction.

When an associate becomes a subsidiary (not joint venture), a remeasurement is required.

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Accounting in Associates

Accounting in Associates
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MPERS vs MFRS : Associates

In this article, we share the main differences in the accounting requirements for associates under MFRS 128 and Section 14 of MPERS.

Associates

Investment in associate refers to the investment in an entity in which the investor has significant influence but does not have full control like a parent and a subsidiary relationship. Usually, the investor has a significant impact when it has 20% to 50% of shares of another entity.

Section 14 of MPERS - Associates

Measure investment in associates

  • The cost model

    Investment is measured at cost less impairment. The quoted associate must be measured at fair value.

  • The equity method

    No exception for temporary investment and for conditions of severe restriction.

  • The fair value model

    Investment is measured at fair value through profit and loss. Any investment which is impracticable to measure fair value must be measured using the cost model.

When an associate becomes a subsidiary or joint venture, a remeasurement is required with gain or loss recognized in P/L account

MFRS 128 - Associates

Measure investment in associates under the equity method in the consolidated financial statements.

No exception for temporary investment and for conditions of severe restriction.

When an associate becomes a subsidiary (not joint venture), a remeasurement is required.

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How to apply EOT 2022 from SSM?

How to apply EOT 2022 from SSM?
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SSM Extension of Time 2022

You can apply for extension of time (EOT) with SSM if you cannot meet the SSM deadline.

Requirement of the Companies Act, 2016

Section 258(1)(a) and 259(1)(a) of CA 2016

A Private Company is required to circulate the audited financial statements within 6 months from the financial year end and submit to SSM within 30 days from the circulation date.

How to apply?

Submit the application form [Section 259(2)] to SSM by filling in the information required

When to submit?

The company is required to submit the EOT application at least 7 days before the last day of circulation period.

What is the information required?

a) Details of the Company

  •  Company name

  •  Registered office address

  •  Company registration number

  •  Telephone, fax number and email address

b) Details of the application

  •  Financial year end

  •  Last date of circulation date

  •  Proposed period of extension

  • (Generally, maximum 90 days)

  •  Reason for application

Application fee

  • RM100 for each segment of EOT application.

  • Payable to SSM

Result of application

  • The application of EOT is subject to SSM approval.

  • SSM will issue a letter informing the applicant of the result of the application.

 

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Market Development Grant - Part 1

Market Development Grant - Part 1
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MATRADE - Market Development Grant (MDG) RM300,000

What is MDG?

The Market Development Grant (MDG) is a support initiative in the form of a reimbursable grant. MDG was introduced in 2002 with the objective of assisting exporters in their efforts to promote Malaysian made products or services globally.

The lifetime limit of MDG is RM300,000 and it is specifically formulated for Malaysian SME Companies, Professional Service Providers, Trade and Industry Associations, Chambers of Commerce, Professional Bodies and Co-operatives.

[Note: MDG reimbursements are subject to the availability of the government funds]

What Activities Are Eligible For Grant Funding?

Physical Events

  1. Participation in International Trade Fairs or Exhibitions held in Malaysia/Overseas

  2. Participation in Trade & Investment Missions (TIM) or Export Acceleration Missions (EAM)

  3. Participation in International Conferences Held Overseas

  4. Listing Fees for Made in Malaysia Products in Supermarkets or Hypermarkets or Retail Centres or Boutique Outlets Located Overseas

Virtual Events

  1. Participation in Virtual International Trade Fairs In Malaysia Or Overseas

  2. Participation In Business To Business (B2B) Meetings Related To Virtual Trade Investment Missions And Export Acceleration Missions

Who Is Eligible To Claim For MDG? (please refer to MDG Guidelines)

  1. Small And Medium Enterprises (SMEs)

  2. Professional Service Providers (Sole Proprietor Or Partnership)

  3. Trade & Industry Associations, Chambers Of Commerce Or Professional Bodies

  4. Co-operatives

Source

  1. Market Development Grant (MDG) Physical Events

  1. Market Development Grant (MDG) Virtual Events

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Market Development Grant

Market Development Grant
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𝐑𝐌𝟑𝟎𝟎𝐤 𝐌𝐀𝐓𝐑𝐀𝐃𝐄 𝐆𝐫𝐚𝐧𝐭 𝐭𝐨 𝐒𝐌𝐄

Marketing Development Grant (MDG) is an export support initiative in the form of a reimbursable grant.

It is eligible for those attend international trade fairs and event to promote Malaysia products or services in current or virtual form.

🎯𝐇𝐨𝐰 𝐜𝐚𝐧 𝐌𝐃𝐆 𝐡𝐞𝐥𝐩?

The marketing team start to arrange for this event.

They book the flight tickets, accommodation, liaise with the organizer, looking for suitable spot and booth and others necessary.

With the assistance of MDG, these expenses are reimbursable!

🎯𝐇𝐨𝐰 𝐝𝐨 𝐀𝐀𝐀 𝐦𝐚𝐤𝐞 𝐭𝐡𝐞 𝐜𝐥𝐚𝐢𝐦?

1) Registered as MATRADE member

The registration is simple, just visit the MATRADE official website as link below:
http://www.matrade.gov.my/…/onli…/register-as-matrade-member

And fill up your company information as required. Registration is free.

2) Make the claim online

AAA can claim the MDG within 30 days from the last date of promotion activity.

The application can be made online: www.matrade.gov.my/mdg

The documentations required is to proof your presence in this events, such as payment trails, flight ticket, exhibitor pass and others.

Please make sure you keep all the documentations and fully utilise the grant!

The maximum claimable amount is depending on types of event you joined. As for AAA, they are eligible for maximum up to RM25k.

Let's hope AAA achieves success in this event and comes back with a big victory!

This message was brought to you by KTP

Accounting for Investment Properties in Malaysia

Accounting for Investment Properties in Malaysia
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MPERS vs MFRS : Investment Properties

In this article, we share the main differences in the accounting requirements for investment properties under MFRS 140 and Section 16 of MPERS.

Investment Properties

Investment property is property (land or a building – or part of a building – or both) held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation, or both, rather than for:

  • Use in the production or supply of goods or services, or for administrative purposes; or

  • Sale in the ordinary course of operations.

What is the accounting treatment for investment properties?

Section 16 of MPERS - Investment Properties

If the fair value can be measured reliably without undue cost or effort on an ongoing basis, the IP must be measured at the fair value model.

All other IP must be accounted for as property, plant and equipment using the depreciated cost model in Section 17 Property, Plant and Equipment.

MFRS 140 - Investment Properties

Measured at fair value or depreciated cost model

 

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Accounting for borrowing cost Malaysia

Accounting for borrowing cost Malaysia
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MPERS vs MFRS : Borrowing Cost

In this article, we share the main differences in the accounting requirements for borrowing costs under MFRS 123 and Section 25 of MPERS.

Borrowing Cost :

Borrowing costs are interest and other expenses incurred by an entity concerning the funds borrowed. Borrowing cost includes the following type of costs:

  • Interest on bank borrowings (both short-term and long-term) as well as bank overdrafts.

  • Amortisation of discounts or premiums relating to borrowings.

  • Amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

  • Finance charges in relation to finance leases and service concession arrangements.

  • Exchange differences from foreign currency borrowings, to the extent that they are regarded as an adjustment to interest costs.

  •  

What is the accounting treatment for borrowing costs?

Section 25 of MPERS - Borrowing Cost

Recognise all borrowing costs as an expense in profit or loss in the period they are incurred. The option of capitalising borrowing costs on qualifying

assets are not allowed.

MFRS 123 - Borrowing cost

Borrowing costs that are directly related to a qualifying asset shall be capitalised as part of the cost of that asset.

Borrowing costs directly attributable to the acquisition, construction or production of a 'qualifying asset' (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are included in the cost of the asset.

An entity shall cease capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete

 

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MPERS vs MFRS Malaysia

MPERS vs MFRS Malaysia
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MPERS vs MFRS : An overview of Accounting Standards in Malaysia

There are 2 types of accounting standards in Malaysia

  1. MPERS : Malaysian Private Entities Reporting Standard

  2. MFRS : Malaysian Financial Reporting Standards

Private Entities

Private entities shall comply with either:

1. Malaysian Private Entities Reporting Standard (MPERS) in their entirety for financial statements. or

2. Malaysian Financial Reporting Standards (MFRS) in their entirety.

A private entity is a private company as defined in section 2 of the Companies Act 2016 that –

  1. is not itself required to prepare or lodge any financial statements under any law administered by the Securities Commission Malaysia or Bank Negara Malaysia; and

  2. is not a subsidiary or associate of, or jointly controlled by, an entity which is required to prepare or lodge any financial statements under any law administered by the Securities Commission Malaysia or Bank Negara Malaysia.

Notwithstanding the above, a private company that is itself, or is a subsidiary or associate of, or jointly controlled by, an entity that is a management company as defined in section 2 of the Interest Schemes Act 2016 is not a private entity.

MPERS vs MFRS

More to come in coming days the comparison MPERS and MFRS

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Investment Tax Allowance Incentive Malaysia

Investment Tax Allowance Incentive Malaysia
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Tax Incentives For The Manufacturing Sector : Investment Tax Allowance

The major tax incentives for companies investing in the manufacturing sector are the Pioneer Status and the Investment Tax Allowance.

Qualifying Criteria

Eligibility for Pioneer Status and Investment Tax Allowance is based on certain priorities, including the level of value-added, technology used and industrial linkages.

Eligible activities and products are termed as “promoted activities” or “promoted products”. (See Appendix I: List of Promoted Activities and Products – General)

The company must submit its application to MIDA before commencing operation/production.

(i) Investment Tax Allowance

As an alternative to Pioneer Status, a company may apply for Investment Tax Allowance (ITA).   A company granted ITA is entitled to an allowance of 60% on its qualifying capital expenditure (factory, plant, machinery or other equipment used for the approved project) incurred within five years from the date the first qualifying capital expenditure is incurred.

The company can offset this allowance against 70% of its statutory income for each year of assessment. The remaining 30% of its statutory income will be taxed at the prevailing company tax rate.

Any unutilised allowance can be carried forward to subsequent years until fully utilised. 

Applications should be submitted to MIDA.

 

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Pioneer Status Incentive

Pioneer Status Incentive
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Tax Incentives For The Manufacturing Sector : Pioneer Status

The major tax incentives for companies investing in the manufacturing sector are the Pioneer Status and the Investment Tax Allowance.

Qualifying Criteria

Eligibility for Pioneer Status and Investment Tax Allowance is based on certain priorities, including the level of value-added, technology used and industrial linkages.

Eligible activities and products are termed as “promoted activities” or “promoted products”. (See Appendix I: List of Promoted Activities and Products – General)

The company must submit its application to MIDA before commencing operation/production.

(i) Pioneer Status

A company granted Pioneer Status (PS) enjoys a five year partial exemption from the payment of income tax. It pays tax on 30% of its statutory income*, with the exemption period commencing from its Production Day (defined as the day its production level reaches 30% of its capacity).

Unabsorbed capital allowances incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company. Accumulated losses incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company for a period of seven consecutive years.

Applications for Pioneer Status should be submitted to MIDA.

 

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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

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Overview of The Malaysian Financial Reporting Standards (MFRS)

Overview of The Malaysian Financial Reporting Standards (MFRS)
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The Malaysian Financial Reporting Standards (MFRS)

Accounting Standards Malaysia

There are three types of approved accounting standards here in Malaysia:

  • The Malaysian Financial Reporting Standards (MFRS) – This is the MASB approved accounting standards for entities, but this does not include private entities

  • Private Entity Reporting Standards (PERS) – This is the MASB approved accounting standards for all private entities. However, this has been withdrawn effective 1 January 2016.

  • Malaysian Private Entities Reporting Standards (MPERS) – This replaces the previous PERS and is in effect from 1 January 2016.

MFRS

Entities Other Than Private Entities shall apply the MFRS framework for annual periods beginning on or after 1 January 2012, with the exception of entities that are permitted in the alternative to apply the Financial Reporting Standards (FRS) framework.

The Malaysian Financial Reporting Standards (MFRS) framework was introduced by the Malaysian Accounting Standards Board (MASB) and came into effect on 1 January 2012.

It is fully compliant with the International Financial Reporting Standards (IFRS) framework, which enhances the credibility and transparency of financial reporting in Malaysia.

The numbering of the MFRS corresponds with the equivalent IFRS Standard issued by the IASB. MFRS prefix with “1xx” corresponds with the equivalent IAS.

 

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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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Case Study : Tax incentives on the manufacturing of animal feeds from MIDA ?

Case Study : Tax incentives on the manufacturing of animal feeds from MIDA ?
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How to apply tax incentives on the manufacturing of animal feeds from MIDA ?

Tax Incentive Application for Animal Feed Ingredients

Under the Promotion of Investments Act 1986, Small Scale Manufacturing Companies are eligible for the following tax incentives for manufacturing promoted products or activities:

a) Pioneer Status with a full tax exemption for 5 years, or

b) Investment Tax Allowance can be offset against 100% of statutory income for 5 years of assessments.

 

Besides, the Company needs to full fill the SME definition as follows to apply this tax incentive:

a) Companies with shareholders’ funds of up to RM500,000 with at least 60% Malaysian equity

b) Companies with shareholders’ funds of above RM500,000 and not exceeding RM2.5 million with 100% Malaysian equity.

Scenario

XYZ Sdn Bhd (Name changed to protect the privacy of the Company) is a new transfer client to the KTP Group of Companies. During the discussion with directors, we understand that the Company has the intention to manufacture animal feed supplements. The supplements will help the cows to produce more milk.

Thus, we have studied and identified the tax incentive for this business nature. Manufacturing animal feed is one of the promoted activities listed under Small Scale Manufacturing Companies (Appendix III).

Struggles

Firstly, we have contacted the MIDA officer to confirm manufacturing of animal supplements is fall under animal feed ingredients.

Following that we have arranged a virtual meeting with the MIDA officer and the Company directors. Prior to the meeting, the MIDA officer asks for some details as follows for an initial discussion with the client.

The information required such as:

a) shareholders fund and

b) employment,

c) project cost,

d) raw materials and

e) process flow chart.

Solution

After providing the details, the officer has further studied in detail and guided us on the application of the tax incentive to the next steps.

Source:

http://www.ctim.org.my/file/news/15/00141_Tax%20Incentive%20for%20Small%20Scale%20Manufacturing%20Companies.pdf

https://www.mida.gov.my/wp-content/uploads/2020/12/20200425151042_Appendix20III20Small20Company.pdf

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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

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Should I declare rental income in Malaysia

Should I declare rental income in Malaysia
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What happen if you don’t declare rental income?

Omission of Rental Income

Any person who makes an incorrect return by omitting or understating any income.

Penalty

S113(1)(a) of the Income Tax Act

Make an incorrect return by omitting or understating any income

RM1,000 to RM10,000 and 200% of tax undercharged

 

S113(1)(b) of the Income Tax Act

Give any incorrect information affecting the tax liability

RM1,000 to RM10,000 and 200% of tax undercharged

 

S114 of the Income Tax Act

Wilfully and intent to evade or assist any other person to evade tax

RM1,000 to RM20,000 or imprisonment not exceeding 3 years and 200% of tax undercharged

 

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THK (Secretarial, Bookkeeping, Payroll, Advisory)

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The exemption of foreign source income - what next

The exemption of foreign source income - what next
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Confusion on the exemption of foreign source income

On 31st December 2022, our government has agreed to exempt taxation on foreign source income (FSI) for resident taxpayers to ensure the smooth implementation of the tax initiative, said the Ministry of Finance (MoF).

The tax exemption is effective from Jan 1, 2022 to Dec 31, 2026.

Subject to Inland Revenue Board criteria and guidelines, income tax exemption on dividends will be given to companies or limited liability partnerships while individuals will be tax-exempted for all types of income.

Exclusion on the exemption

The exemption on foreign source income does not apply to company that receives income from renting properties overseas, interest income and royalty income.

These incomes will be subjected to Malaysia tax upon remittance into Malaysia.

Double Tax Relief

Relief from double taxation can be provided under two ways namely exemption method and tax credit method. Under the exemption method, specific income is taxed in one of the two countries and exempted in another country.

If the Malaysian company suffered tax on the rental/interest/royalty income which is remitted into Malaysia, a taxpayer can claim double tax relief under Section 132 or single tax relief under Section 133.

 

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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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Changes of Form C Year Assessment 2022

Changes of Form C Year Assessment 2022
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(Update) Changes of Form C Year Assessment 2022

1. Income from the source of business(es) and partnership(s) outside Malaysia received in Malaysia effective from 01.07.2022 – Item A2, A7, A20

Aggregate statutory income from sources of business(es) and partnership(s) outside Malaysia received in Malaysia effective from 01.07.2022

Effective from 1 January 2022, the exemption given to Malaysian residents on income from sources outside Malaysia received in Malaysia under paragraph 28, Schedule 6, ITA 1967 has been withdrawn. Income from sources outside Malaysia which is remitted to Malaysia by a resident whether active or passive other than from sources arising from operations carried on in Malaysia, is subject to income tax.

Special guidelines related to tax treatment for income from sources outside Malaysia received in Malaysia will be published on the IRBM Official Portal.

This item must be filled in by a resident company that remits business and/or partnership income from sources outside Malaysia to Malaysia effective from 1 July 2022.

 

2. Apportionment of Chargeable – Item B2a – B2g

Cukai Makmur – 33% - Companies with taxable income exceeding RM100 million for the basis period for the year of assessment 2022 other than companies subject to the tax rate under paragraph 2A of Part I of Schedule 1.

 

3. Particulars of Schedule 7A allowance – Item C3 & C4

The company is eligible to claim RA PENJANA and extension of RA PENJANA if it incurred an eligible expenditure during the Year of Assessment 2020 to 2024 in accordance with the provisions of paragraphs 2B and 4C of Schedule 7A of ITA 1967.

Eligible expenditure incurred in the Year of Assessment 2019 (if any) is not entitled for RA in Year of Assessment 2019.

Nevertheless, a separate calculation needs to be made between the RA PENJANA and the ordinary / extension of RA ending in the Year of Assessment 2018. The calculation of the seven (7) year restriction of unabsorbed RA PENJANA will commence in the Year of Assessment 2025 and will end in the Year of Assessment 2031. Balance of unabsorbed RA PENJANA will be disregarded from the Year of Assessment 2032.

 

4. CLAIM FOR LOSSES – Part E

From 7 consecutive years to 10 consecutive years.

With effect from the Year of Assessment 2019, unabsorbed current year losses are only allowed for carrying forward to be absorbed for a maximum period of up to ten (10) consecutive years [Subsection 44(5F)].

 

5. Carries out controlled transactions under sections 139 and 140A – Item F8

More information need to fill in
 

6. Made payments in the basis period which are subject to withholding tax under sections 107A, 107D, 109, 109A, 109B, 109E, 109F and 109G – Item G2

Tax deduction of 2% under section 107D - Payments made in cash by the paying company to appointed agents, dealers or distributors who are resident individuals.

Withholding tax rate:

Tax deductions at a rate of 2% is applicable for payment made in the form of cash to agents, distributors or distributors in the current year.

Such tax deduction is only applicable if the total amount of payment, whether in cash or non-cash, made by the paying company to the agents, dealers or distributors in the previous year exceeds RM100,000.

7. Carry on e-Commerce – Item G4a

A company is considered to be engaged in e-commerce business if the business operations are included in the e-commerce business model as in the table below.

This business model is a general guide for taxpayers.

For more information, please refer to the Guidelines on Taxation of Electronic Commerce Transactions dated 13th May 2019

guidelines_e_commerce_13052019.pdf (hasil.gov.my)

8. Website / social media address – Item G4b

Previously mention “Website/blog address (if any). Now change to “address of the website / social media that is used to conduct the business (if any)”.

9. Particulars of auditors – Item Part H

Income tax no. of the firm - Income tax number of the audit firm as registered with IRBM.

10. Particulars of the Tax Agent and signature of the person who completes this return form.

Income tax no. of the firm - Income tax number of the tax agent’s firm as registered with IRBM..

11. Declaration - Amendments in the declaration

If this return form is prepared based on the liquidator’s account in accordance with the requirements under the Companies Act 2016 (If item 6 = 3), fill in ‘3’ in the relevant box.

891011121314151617

 

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