Blog

What is the valuation of stock for the conversion from enterprise to Sdn Bhd?

What is the valuation of stock for the conversion from enterprise to Sdn Bhd?
View Full Size

What is the valuation of stock for the conversion from enterprise to Sdn Bhd?

Referring to Public Ruling 2/2020 Tax Treatment of Stock in Trade Part 1 - Valuation of Stock

Valuation of Stock equal to

  1. Price paid on the sales or

  2. Value of the consideration

Valuation of Stock is not market value of the stock

Conditions

Where a person permanently ceases to carry on his business and –

(a) any stock of the business is transferred on cessation or shortly after cessation for a valuable consideration to another person who intends to use that sold or transferred stock in his business

(b) the cost of the transferred stock is deductible as an expense in computing the other person’s adjusted income for the basis period for a year of assessment of his business

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

疫情当下, 国库空虚

疫情当下, 国库空虚
View Full Size
疫情当下, 国库空虚
去年开始肆虐的冠病疫情冲击全球经济,让近年已经饱受各种沧桑,如国际油价波动、政局动荡的我国财政状况雪上加霜....

Source :
南洋商报 5/4/21: 探讨资本利得 古董买卖万字奖金或抽税

Full story in our blog
https://www.ktp.com.my/blog/captial-gain-tax/05april2021

𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 :
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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates &
experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

Director shall vacant office under Section 208 of Company Act 2016

Director shall vacant office under Section 208 of Company Act 2016
View Full Size
🆘Ask Us Anything 🆘
 
𝐃𝐨 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐯𝐚𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫𝐬𝐡𝐢𝐩 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐀𝐜𝐭 𝟐𝟎𝟏𝟔?

𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 :
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)

𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭, 𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

3 minutes video on how to register HRDF

3 minutes video on how to register HRDF
View Full Size

Instructional Video - How to Register with HRDF

Background

Recently, the Government has expanded the scope of industries for employers who have more than 10 employees to register Human Resources Development Funds (HRDF).

The objective is to increase the training opportunities for all employees to up-skill themselves and be prepared for a future ready workforce against technology displacement.

The Government has also encouraged those employers who are not mandatory to register to submit the Form 1 as well.

We understood this is a challenge for some employers on how to do the registration.

To clear your doubt, please watch our video with one click.

https://bit.ly/3sFAzWN

Sources:

Human Resources Development Fund Official Website https://www.hrdf.com.my/

P.U.(A) 84 Pembangunan Sumber Manusia Berhad (Amendment of First Schedule) Order 2021

https://www.hrdf.com.my/wp-content/uploads/2016/12/FEDERAL-GOVERMENT-GAZETTE-PEMBANGUNAN-SUMBER-MANUSIA-BERHAD-AMENDMENT-OF-FIRST-SCHEDULE-ORDER-2021.pdf


Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

Convert Enterprise (sole-proprietorship/partnership) to Sdn Bhd Explained ... Controlled Transfer

Convert Enterprise (sole-proprietorship/partnership) to Sdn Bhd Explained ... Controlled Transfer
View Full Size

What is control transfer under income tax act for the conversion from sole proprietorship to Sdn Bhd?

As per refer to Public Ruling 1/2018 Public Ruling 1/2018 Disposal of Plant and Machinery Part II - Controlled Sales

Control transfer is transaction of asset between two parties.

  • The acquirer of the asset has control(at least 50%) over the disposer and; vice versa

  • Some other person has control over the disposer and acquirer of the asset

  • The disposal is effected in consequence of a scheme of reconstruction or amalgamation of companies

The disposal is effected by way of a settlement or gift or by devolution of the property in the asset on death

The conversion of sole proprietorship to Sdn Bhd will subject to control transfer.

 As the control right of sole proprietorship and Sdn Bhd come from one person.

Treatment in tax

  • The disposal of asset from sole proprietorship to Sdn Bhd.

  • The assets deemed transfer at residual expenditure instead of the transaction price.

  • Disposer would not subject to balancing charge or allowance.

  • Acquirer's can't claim the initial allowance and claim annual allowance based on disposer's acquisition price but restricted to the residual expenditure.

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.


 

Directorship disqualification under Company Act 2016

Directorship disqualification under Company Act 2016
View Full Size
🆘Ask Us Anything 🆘
 
𝐃𝐨 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫 𝐜𝐚𝐧 𝐛𝐞 𝐝𝐢𝐬𝐪𝐮𝐚𝐥𝐢𝐟𝐢𝐞𝐝 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐀𝐜𝐭 𝟐𝟎𝟏𝟔?

𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 :
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)

𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭, 𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

FAQ Malaysian Institute Accountants seminar with HRDF @ 23/03/21

FAQ Malaysian Institute Accountants seminar with HRDF @ 23/03/21
View Full Size

Question 7: Is professional firm considered as employer? (eg: sole-proprietor, partnership and LLP)

Answer:

Yes, all are considered as employer if they have contract of service with employee.

“Employer means any person who has entered into a contract of service to employ any other person as an employee, and includes an agent, manager or factor of such first-mentioned person.”

Question 8: What is the compound for not registering?

Answer:

According to Section 13(2) of PSMB Act 2001, the employer is liable to a fine of not exceeding RM10,000 or imprisonment not exceeding 1 year or both.

Question 9 : How to define employees?

Answer:

It included all the employees who are under “Contract of Service”.

Included: partners from partnership, trainee, part time, non-professional employees (eg: cleaner, coffee lady, receptionist)

Excluded: Internship

“Contract of service means any agreement, whether oral or in writing and whether express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve his employer as an employee, and includes an apprenticeship contract”

Question 10 : Is internship consider under contract of service?

Answer:

No. Internship is not under contract of service.

Question 11 : How to define wages?

Answer:

Wages = salary + fixed allowance. Not include: no fixed allowance, bonus.

 “Wages means the basic salary and fixed allowances or other emoluments of a like nature paid in cash by or on behalf of an employer to an employee, and includes any leave pay and arrears of wages but does not include: -

a)       any contribution paid by an employer on his own account to any pension fund, provident fund, superannuation scheme, retrenchment, termination, lay-off or retirement scheme, thrift scheme or any other fund or scheme establish for the benefit or welfare of the employee;

b)      any travelling allowance or the value of any travelling concession;

c)       any sum payable to the employee to defray special expense entailed on him by the nature of his employment;

d)      any gratuity payable on discharge or retirement;

e)      any bonus or commission; or

f)        any allowances paid to apprentice under apprenticeship contract;”

“Monthly wages means the wages paid by an employer to an employee for the whole or part of the month during which the employee id employed by the employer.”

 Question 12 : Is director fee subject to HRDF?

Answer:

A director who only receive director fees is not considered as employee.

Question 13 : What are the steps to claim HRDF?

Answer:

Step 1: Send application first and is approved training (registered under HRDF)

Step 2: Approved and attend training (include registered under HRDF and internal training (eg: conduct by manager)

Step 3: Submit complete document for the claim after training (will have a workshop on guiding how to claim)

Question 14 : Any expire date to utilize the fund?

Answer:

Yes, you need to claim the fund within 24 months. Otherwise, it will be forfeited after 24 months from the date of contribution.

Question 15:  The levy payment is exempted from March to May 2021. Does it mean the first levy payment is on wages for June 2021 and the payment due date is on or before 15 July 2021?

Answer:

Yes, the company need to pay the levy on salaries from June 2021 onwards. Levy payment to be made no later than 15th of the month.

Question 16 :  How much is the rate of levy if number of employees reduce to less than 10? Do I need to notify Corporation?

Answer:

No, you no need to notify Corporation. The rate of levy shall remain at 1% of the monthly wages of each of the employees until the end of the current year.

However, the rate of levy shall be 0.5% if the number of employees remains below 10 after the current year.

[Refer to Section 15(5) and Section 15(6) of PBSM 2001]

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.


 

who is director under the Company Act 2016 ?

who is director under the Company Act 2016 ?
View Full Size
Ask Us Anything 🧧
 
𝐃𝐨 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐰𝐡𝐨 𝐢𝐬 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐀𝐜𝐭 𝟐𝟎𝟏𝟔?

𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 :
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)

𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭, 𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

𝐅𝐀𝐐 - 𝐌𝐈𝐀 𝐬𝐞𝐦𝐢𝐧𝐚𝐫 𝐰𝐢𝐭𝐡 𝐇𝐑𝐃𝐅 @ 𝟐𝟑/𝟎𝟑/𝟐𝟏

𝐅𝐀𝐐 - 𝐌𝐈𝐀 𝐬𝐞𝐦𝐢𝐧𝐚𝐫 𝐰𝐢𝐭𝐡 𝐇𝐑𝐃𝐅 @ 𝟐𝟑/𝟎𝟑/𝟐𝟏
View Full Size

Question 1: Can employer register after 31.03.2021? Say 30.04.2021, as the levy exemption is up to 31.05.2021.

Answer:

No, you need to register not later than 30 days from the effective date of Expansion of Act [i.e. 01.03.2021].

[Refer to Section 13(1) of PSMB Act 2001 and Regulation 4(1) of Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy (Amendment) Regulation]

To avoid enforcement action by HRDF, you are advised to register before 30.03.2021. (HRDF officer can imposed penalty for non-compliance)

01.03 – 31.05.2021 is only for levy exemption under Section 14 and Section 15 of PSMB Act 2001.

[Refer to PU (A) 84 Pembangunan Sumber Manusia Berhad (Exemption of Levy) order 2021]

Question 2: If company has less than 10 staffs after registered, what can the company do?

Answer:

You can opt to deregister under Section 16(2) of PSMB Act 2001, if you have less than 10 staffs for three consecutive months. You are required to submit application to Corporation for de-registration together with any relevant documents to prove such decrease.

However, you will need to register again if you have 10 staffs in future.

Alternatively, you can continue contribute 1% on remaining 9 staff without deregister. The company is not required to inform if changes in number of workers. The company only need to contribute according to number of remaining staff.

[Refer to Section 15(5) of PSMB Act 2001]

Question 3: If I de-register or I close down my company? Can I get a refund?

No, you will not be refunded.

For de-registration

When an employer is re-registered within a period of two years from the date of deregister, the company shall continue to be eligible to receive financial assistance or other benefits to which the employer was entitled prior to the deregistration.

[Refer to Section 16(2) of PSMB Act 2001]

 For closure of company

No balance will be refunded and balance of levy will be transferred to the HRDF General Reserve.

Question 4: Shall HQ register for all branches?

Answer:

Yes, if HQ and all branches under one registration number (ROC/ROB).

But, if HQ and branches are separate entity, then they need to register separately.

Question 5: How about if HQ and branches have different EPF or SOCSO number?

Answer:

HQ can register first, then branches register under HQ. HRDF will assign number to branches like [xxxxx_(Branch 1)], [xxxxx_(Branch 2)]. The company is required to inform HRDF.

Question 6: All employers must submit Form 1 regardless number of employees or even a dormant company?

Answer:

Yes, Form 1 is for a declaration forms and do not tick voluntary register when submit the form.

If you are not liable to register under the Act, the application of Form 1 will be rejected and the employer will receive a rejection letter.

If you failed to submit Form 1 within 30 days, a compound of RM2,000.00 will be imposed.

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.


 

Summary of MIA seminar with HRDF on 23/3/2021 Part 1

Summary of MIA seminar with HRDF on 23/3/2021 Part 1
View Full Size

Summary of MIA seminar with HRDF on 23/3/2021

1. Before 1st March 2021, any activities/industry covered under 1st Schedule

- Manufacturing

- Services

- Mining & Quarrying

2. After 1st March 2021, industry/sectors/activity under 1st Schedule is a mandatory category

- Employer with min 10 local employees

- 1% from total gross salary + fixed allowances

- Section 14 Imposition of levy

P.U (A) 84 Pembangunan Sumber Manusia Berhad (Amendment of first schedule) order 2021

3. Exemption levy payment from 1.3.2021 – 31.5.2021 under P.U (A) 85 Pembangunan Sumber Manusia Berhad (Exemption of levy) order 2021

4. Objective to expansion – increase training opportunities for all employees, to up-skilling, and to prepare a future-ready workforce against technology displacement.

5. Please submit Form 1 even though a dormant company with no staff, just for HRDF record. If not required, they will email to reply to you. Except for voluntary register

How to submit Form 1

Step 1 – Scan all the document as per requirement

Step 2 – go to the HRDF website and click register here

Step 3 – Fill in Form 1 and attached all the information

Step 4 – Click submit

Step 5 – within 7 days process.

Take note:

(i) Details of submission officer

Please put the account email instead of the boss email. Because HRDF maybe clarifies with the submission document.

(ii) Employer Integrity Pledge

No compulsory to be filling.

(iii) Employee with 5-9 Malaysian employees are given the option to register with HRDF

Tick for voluntary registration only. If not, please tick.

6. How do you define employees?

Employee included office boy, coffee lady, receptionist excluded internship.

“Contract of service” means any agreement, whether oral or in writing and whether express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve his employer as an employee and includes an apprenticeship contract

7. What are wages?

- Basic salary + fixed allowance

“Wages” means the basic salary and fixed allowances or other emoluments of like nature paid in cash by or on behalf of an employer to an employee and includes any leave pay and arrears of wages.

Not included any pension fund. Provident fund, retirement fund, retrenchment, termination, any traveling allowance, gratuity, bonus, commission, director fee.

8. How to refund?

- No refund - For striking off the company.

- De-registered –

(i) Has do re-registered within a period of two years from the date of deregister shall continue to be eligible to receive any financial assistance.

(ii) If not re-register within a period of two years, the financial assistance will lose.

Can deregister under Section 14A decrease to below ten for three consecutive months.

9. How to claim?

- The courses need to approve by the HRDF organization.

- The claimable is based on your account balance has a minimum of 50% of the training fee. Disbursement by 2 times when the account has sufficient balance.

10. Any update for new staff or resign staff?

- No need to register and update new staff information in the system. You only required to fill in the total paid 1% of the number of employees during the contribution.

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.


 

How to convert enterprise to sdn bhd?

How to convert enterprise to sdn bhd?
View Full Size

Registration Procedure:

  1. Complete the Registration Form.

  2. Every business owner and partners must sign on the registration form.

  3. Owner or one of the partners may submit the application over the counter or submit through online via SSM EzBiz Online services in the SSM’s website at www.ssm.com.my.

  4. Documents to be attached are as follows:

  • Owner’s and /or partner’s identity card;

  • Original Business Registration Certificate for the change of business type;

  • Supporting document or approval letter from relevant agencies for certain type of business if required by Registrar of Business.

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.


 

Duty & responsibility of director

Duty & responsibility of director
View Full Size
Ask Us Anything 🧧

𝐃𝐨 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐰𝐡𝐚𝐭 𝐢𝐬 𝐭𝐡𝐞 𝐝𝐮𝐭𝐲 & 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐨𝐟 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐀𝐜𝐭 𝟐𝟎𝟏𝟔?

𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 :
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)

𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭, 𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

Convert Enterprise (sole-proprietorship/partnership) to Sdn Bhd Explained. Part 1

Convert Enterprise (sole-proprietorship/partnership) to Sdn Bhd Explained. Part 1
View Full Size

Convert Enterprise (sole-proprietorship/partnership) to Sdn Bhd Explained. Part 1

Today we explain the difference between Enterprise and Sdn Bhd comprehensively.

1. Board of director

  • Enterprise : Not required

  • Sdn Bhd : Must have at least one (1) director

2. Liability

  • Enterprise : The owner/partner(s) has unlimited liability and has to take risk in any loss of business fails

  • Sdn Bhd : The shareholder(s) has limited liability. Company becomes separate entity

3. Tax Rate

  • Enterprise : Tax rate for individual income tax between 0% to 30%

  • Sdn Bhd : Annual gross business income not more than RM50 million and paid up ordinary share capital on or less RM2.5million, the tax rate is 17% for first 600K,24% for remaining.

4. Law

  • Enterprise : Regulated under the Business Act 1956

  • Sdn Bhd : Regulated under the Company Act 2016

5. Chargeable person

  • Enterprise : The person is a chargeable person under tax.

  • Sdn Bhd : The company is a chargeable person under tax.

6. Business Management

  • Enterprise : The owner/partner(s) is to manage and run the business.

  • Sdn Bhd : The board of director is to manage and run the business

7. Number of shareholder/owner/partner

  • Enterprise : Sole proprietorship – at least one (1) owner. Partnership – at least two (2) to twenty (20) partners

  • Sdn Bhd : At least one (1) to fifty (50) shareholders

8. Company secretary

  • Enterprise : Not required

  • Sdn Bhd : At least one (1) qualified company secretary

9. Statutory Audit Requirement

  • Enterprise : Not required

  • Sdn Bhd : Yes. Compulsory

10. Annual Compliance

  • Enterprise : Not required

  • Sdn Bhd : Yes. Compulsory to submit annual return and audited financial statement

11. Register Office and Statutory Records

  • Enterprise : Required to keep accounting books and records at the place of business

  • Sdn Bhd : Required to have a registered office within Malaysia which all correspondences & notices may be addressed. Required to keep registers.

12. Income Tax Position

  • Enterprise : Tax on person either the owner or partner(s)

  • Sdn Bhd : Tax on the company.

13. Public Access to Company Financial Situation

  • Enterprise : No need to disclose.

  • Sdn Bhd : Public can access to the financial performance & position of the company

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

FAQ on special deduction for the renovation cost under P.U. (A) 381/2020 (Updated on 11.03.2021) Par

FAQ on special deduction for the renovation cost under P.U. (A) 381/2020 (Updated on 11.03.2021) Par
View Full Size

FAQ on special deduction for the renovation cost under P.U. (A) 381/2020 (Updated on 11.03.2021) Part II

Continue from Part I

5. What is the format/form of verification by the external auditors?

Verification of the external auditors needs to be made through a special certificate.

Special certificates can be made in any appropriate format/ form.

6. Is the payment of certification by external auditor is deductible with my R&R expenses?

- No, the fee of certification by external auditor is not included and it is not deductible.

7. Are my expenses for R&R not allowed for special deduction if the cost is more than RM300,000?

- No, you are still entitled for the special deduction is your R&R expenses is more than RM300,000. The maximum to claim is RM300,000 and terms and conditions under P.U.(A) 381/2020 should be applied.

 For example:

a)    Mr Vincent incurred of RM350,000 for his homestay renovation on 01.06.2020. He is entitled to claim for special deduction for the renovation cost of RM300,000 in YA2020 under P.U.(A) 381/2020. The excess of RM50,000 is not allowed to carried forward.

 Mr Vincent incurred for another renovation cost amounting RM150,000 for his homestay renovation in February 2021. Mr Vincent is not entitled to claim special deduction for RM150,000 renovation cost in YA2021 due to he has claimed for the maximum amount of RM300,000 in YA2020.

 b)    Encik Rahim incurred of RM120,000 for his restaurant renovation on 01.08.2020. He is entitled to claim for special deduction for the renovation cost of RM120,000 in YA2020 under P.U.(A) 381/2020.

 Encik Rahim incurred for another renovation cost amounting RM300,000 for his restaurant renovation in July 2021. But Encik Rahim is entitled to claim special deduction for RM180,000 in YA2021 due to he has reached the maximum amount (RM300,000) that he can claim within the period of 01.03.2020 to 31.12.2021.

8. Is the renovation cost cannot be absorbed when the company has adjusted losses?

- Yes, if the renovation cost is not entitled to claim under P.U. (A)381/2020 and cannot be utilised from adjusted income as it is an adjusted loss to the company. The losses can be carried forward and subject to a restricted period under Subsection 44(5F) of ITA 1967.

9. Can I claim the special deduction for the renovation cost if I have also entitled to claim under subsection 33(1) of ITA 1967 or capital allowance under Schedule 2 or Schedule 3?

- No, you are not entitled to claim the special deduction for the renovation cost if you have claimed under subsection 33(1) of ITA 1967 or capital allowance under Schedule 2 or Schedule 3.

 10. What supporting document is required?

- The supporting documents should be kept for the required period under ITA 1967 and due to the requirement by LHDN. Supporting documents to be provided including:

 i)              Business registration certificate

ii)             Ownership of the premises (eg: Tenancy agreement)

iii)            Invoice for the renovation cost, and

iv)           Invoice for the renovation cost which certified by external auditor

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.


 

The offence on any director who contravene the duty & responsibility of directorship

The offence on any director who contravene the duty & responsibility of directorship
View Full Size
Ask Us Anything 🧧
 
𝐃𝐨 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐰𝐡𝐚𝐭 𝐢𝐬 𝐨𝐟𝐟𝐞𝐧𝐬𝐞 𝐨𝐧 𝐚𝐧𝐲 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫 𝐰𝐡𝐨 𝐜𝐨𝐧𝐭𝐫𝐚𝐯𝐞𝐧𝐞 𝐭𝐡𝐞 𝐝𝐮𝐭𝐲 & 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐀𝐜𝐭 𝟐𝟎𝟏𝟔?

𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 :
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

𝐓𝐇𝐊 (Account/Payroll, Secretarial & Advisory)

𝐊𝐓𝐏 (Audit, Tax & Advisory)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

Tax deduction on cash loss?

Tax deduction on cash loss?
View Full Size

Tax deduction on cash loss?

Embezzlement is the act of someone wrongfully appropriating funds that have been entrusted to their care but which are owned by someone else. Many small businesses are victims of thefts perpetrated by employees.

From a tax perspective, can the cash loss eligible for tax deduction?

Let’s illustrate with a simple real case:

Scenario

 GGG Sdn Bhd (actual name of the company is conceived to protect confidentiality) has entrusted their account executive on the usage of company’s fund to smoothen the daily operation. However, they have recently found out he has been transferred funds to his accounts over the past 6 months.

 The account executive had run away and no way to be found. The total losses are approximately around RM100,000. Without hesitation, GGG had reported to the police.

 Struggles

  • Can the cash loss eligible for tax deduction?

  • Is a police report sufficient?

Solution:

 Yes, the cash loss is tax-deductible. However, sufficient documentation must be kept. A mere police report is arguably insufficient, as it was only proof that the incident happened.

 To avoid further disputes from IRB officer, KTP has advised GGG to prepare more documents as below: -

  • Bank receipts of cash transfer to the account executive current account, letter of employment termination, and bank statement as proof of the person involved.

  • Police report and minutes of the board of directors’ meeting as proof of the action taken.

Sources:

Public Ruling NO. 4/2012 - Deduction for Loss of Cash and Treatment of Recoveries

http://phl.hasil.gov.my/pdf/pdfam/PR_No_4_2012.pdf

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

FAQ (English version) on special deduction for the renovation cost under P.U. (A) 381/2020

FAQ (English version) on special deduction for the renovation cost under P.U. (A) 381/2020
View Full Size

FAQ on special deduction for the renovation cost under P.U. (A) 381/2020 (Updated on 11.03.2021)

Expenses incurred (between 1 March 2020 to 31 December 2020) to renovate/refurbish (R&R) the business premises for business purpose are given tax deduction up to a limit of RM300,000.

1. Who is eligible?

To be eligible to claim for tax deduction, shall be subject to the following conditions:

- Any taxpayer who incurred an expense of R&R on business premises.

- The business premises are used for the purpose of its business.

- Deduction is given on the adjusted income under paragraph 4 (a) of the Act Income Tax 1967

2. What is meant with the premise business for this purpose?

All the business premises are either owned or rented by the taxpayer and the premises are used for the purpose of business is eligible.

Example:

(a) Mr. Vincent is the owner of a homestay in Bagan Lalang. During the Movement Control Order (PKP) 2020, Mr. Vincent has costs incurred of R&R on homestays. Expenses of R&R performed by Mr. Vincent for the period of 1 March until 31 December 2020 is eligible for a deduction under P.U. (A) 381/2020 in determining income adjustment of his homestay business for the year of assessment 2020 is subject to the conditions set.

(b) Mr. Rahim rented a shop house for running a restaurant business. During the period Movement Control Order (PKP), the restaurant business was temporarily closed and Mr. Rahim has costs incurred of R&R. Expenses of R&R done by Mr. Rahim is eligible for deduction in determining the income of its subject business to the conditions prescribed under P.U. (A)381/2020.

(c) Hijras Arkitek Sdn Bhd provides services of architectural consultant and has an office in Petaling Jaya. In March 2021, the office has costs incurred of R&R i.e. installing carpets in his office. Hijras Arkitek Sdn Bhd is eligible deductions in determining the income of his business subject to the conditions set out under P.U. (A) 381/2020.           

3. What are the eligible and not eligible cost of R&R?

Expenses eligible for tax deduction in the First Schedule P.U. (A) 381/2020:

- General electrical installation

- Lighting

- Gas system

- Water system

- Kitchen fittings

- Sanitary fittings

- Door, gate, window, grill and roller shutter

- Fixed partitions

- Flooring (including carpets)

- Wall covering (including paint work)- False ceiling and cornices

- Ornamental features or decorations excluding fine art

- Canopy or awning

- Fitting room or changing room- Recreational room for employee

- Air-conditioning system

- Children play area

- Reception area- Prayer Room

All the cost involved must be certified by external auditors.

Not eligible costs of R&R are in the Second Schedule P.U. (A) 381/2020:

- Designer fee

- Professional fee- Purchase of antique (purchase of an object or work of art which, represents a previous era in human society, is a collectable item due to its age, rarity, craftsmanship or other unique features and appreciates in value over time)

4. What is the external auditors?

External auditor means a qualified auditor who can confirm the cost incurred by the taxpayer on claims for renovation and renewal costs business premises under P.U. (A) 381/2020.   

To be continued…..

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.


 

𝐃𝐨 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐰𝐡𝐚𝐭 𝐢𝐬 responsibility 𝐨𝐟 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫 𝐮

𝐃𝐨 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐰𝐡𝐚𝐭 𝐢𝐬 responsibility 𝐨𝐟 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫 𝐮
View Full Size
Ask Us Anything 🧧
 
𝐃𝐨 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐰𝐡𝐚𝐭 𝐢𝐬 responsibility 𝐨𝐟 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐀𝐜𝐭 𝟐𝟎𝟏𝟔?

𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 :
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

𝐓𝐇𝐊 (Account/Payroll, Secretarial & Advisory)

𝐊𝐓𝐏 (Audit, Tax & Advisory)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.

租金收入-税税问与答 Part 2

租金收入-税税问与答 Part 2
View Full Size

租金收入-税税问与答 Part 2

纳税人常问关于租金收入的tax问题 :

1.租金收入的税率%是多少?

2.为什么这么高 24%?

3.可以扣除assets?

4.亏损可以带到明年吗?

5.何时对租金收入征税?

Assets 资产

  • Business Income 4(a)

    资本津贴可以用于工厂和机器的费用。

    Capital allowances can be claimed on capital expenditure incurred on plant and machinery.

  • Investment Income 4(d)

    不可以获得资本津贴,但替换家具和空调等家具的费用可以从租赁的总收入中扣除。

    Capital allowance cannot be claimed, but cost of replacing furnishings such as furniture and air conditioner can be claimed as a deduction from gross income from that letting.

税收待遇 Tax Treatment

  • Business Income 4(a)

    在最初的RM600,000 是17%的税率, 剩下的是24%的税率

    First RM600,000 17% Remaining 24%,

  • Investment Income 4(d)

    根据PR10/2015第8.2段,投资控股公司可以获得允许的费用如工资、薪金和津贴、管理费等。

    Under paragraph 8.2 of PR10/2015, the permitted expenses are allowed by the investment holding company such as wages, salaries and allowances, management fees and etc

    参考所得税实践笔记3/2020, 控股公司税率为24%,由2020课税年度起生效

    Refer to Practice Note 3/2020, tax rate for investment holding company is 24% effective from year of assessment

    根据PR 12/2018第11段, 建筑的拥有人可以获得工业建筑津贴,即使租赁是非商业来源,但建筑用于工业建筑

    Under paragraph 11 of PR 12/2018, the owner of the building allowed to claim industrial building allowance even though the letting is a non-business source but the building use for industrial building

营业外收入4(a)变为营业收入4(d) Section 4(a) change to Section 4(d)

无权要求对不动产的设备和机器的资本免税额,因为它们在基本期结束时没有用于商业目的

Not entitled to claim capital allowance on the plant and machinery for the real property since they are not used for business purpose at the end of the basic period.

营业外收入4(d)变为营业收入4(a) Section 4(d) change to Section 4(a)

有权要求对不动产的设备和机器的获得资本津贴,因为它们在基本期结束时用于商业目的。合格费用是指在业务中使用的第一天的市场价值。

Entitled to claim capital allowance on the plant and machinery for the real property since they are used for business purpose at the end of the basic period.

The qualifying expenses is the market value on the first day used in the business.

Visit us

  • 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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)

We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.


 


 

THK Management Advisory Sdn Bhd

Wisma THK, No. 41, 41-01, 41-02, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru, Johor, Malaysia.
+6012-771 7903
+607-361 3443
 
Switch to Mobile Version
Subscribe Newsletter