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Small Value Withholding Tax Payment

Small Value Withholding Tax Payment
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Small Value Withholding Tax Payment

 

An individual/body resident in Malaysia or doing business in Malaysia that is required to pay WHT under S.109 or S.109B of the Income Tax Act 1967 that do not exceed RM500 per transaction for transactions that recur may submit the WHT form and pay the WHT as follows:

(See above)

S.109 or S.109B of the Income Tax Act 1967
  • S.109 = Royalty and Interest earned by non-resident

  • S.109B = Special class of income under Section 4A of the ITA including service and rental of moveable property

Others Operational Issue

The above will take effect from August 2022.

IRBM is in the process of preparing the special WHT forms for the purposes of the above.

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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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Can a company provide financial assistance to purchase shares ?

Can a company provide financial assistance to purchase shares ?
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Can a company provide financial assistance to purchase shares ?

Section 123(1) of the Companies Act (CA) 2016 prohibited a company to give financial assistance, regardless directly or indirectly to any person or its shareholder to acquire its own shares or shares of its holding company.

In the context of financial assistance, it was not defined in CA 2016, however, as stated in the section itself, it could be in the form of a loan, guarantee or provision of security or otherwise connected to such purchase.

The rationale of Section 123(1):

• acquisition of shares should be using his/ her own resources;

• to prevent depletion and reduction of the company’s capital because such action might compromise the benefits and interests of the creditors of that particular company;

• to protect the shareholder’s right to expect, and by extension to protect them from the abuse of the company’s capital;

• to prevent manipulation of the market because when a company gives financial assistance to buy its shares, the outstanding shares will go down;

• increase Earning Per Share (EPS) of the company and simultaneously it can artificially increase the market price per share of the company and that’s how manipulation is done.

Exemption

However, there are exemptions made available under Section 125 and 126 of CA2016 :

a) where the lending of money is part of the company’s ordinary business such as bank or money lender;

b) where it is for a trust scheme for employees;

c) where the financial assistance is given to employees for their own benefit;

d) where the company is regulated by written laws relating to a bank, insurance or takaful or which are subject to the supervision of the Securities Commission;

e) where the company is not a public listed company and it has complied with the conditions listed in s126 where shareholders approved by passing a special resolution at a general meeting to give financial assistance not exceeding 10% of shareholders’ funds if the “whitewash” procedures are satisfied.

Penalties and Offences

Under Section 123(3) of CA2016 will impose a fine not exceeding RM3,000,000 or imprisonment for a term not exceeding five years or both upon conviction. Additionally, as per Subsection 4, the Court may order the convicted person to pay compensation to the company or another person who has suffered loss or damage as a result of the contravention that constituted the offence.

In conclusion, this provision restricts the company from using funds to assist a person to acquire shares. This provision catches some business owners off their guard and is surprised to learn that they are restricted to use the funds of the company to acquire shares as they like.

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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

KTP Lifestyle

An internal community for our colleagues on work and leisure.

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CP 21 Form LHDN

CP 21 Form LHDN
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Update CP 21 form

Tax Quiz: IRB CP 21 & CP 22 is applicable to :

A. All employees

B. Chargeable employees

C. Don't know

Read our past social media posting on CP21 & CP 22 as below :

1. Tax Responsibility Employer – dated 14/04/2022

https://bit.ly/3QHAgpL

2. IRB Latest Operasi on CP 21, CP 22 & CP22A – 11/04/2022

https://bit.ly/3dkGbCQ

3. Calling HR/Account dated – 29/12/2021

Do it before 31 December 2021 on your newly recruited & resigned employees in your company as IRBM ...

https://bit.ly/3phhiuy

4. Are you ready for ''payroll'' tax from IRB? dated on 13/10/2021

https://bit.ly/3PoWFr3

5. 为什么所得税发布 2021 年 10 月 1 日 发布雇主审计框架 (Audit Framework for Employers) ? dated 7/10/2021

https://bit.ly/3QAcNHc

6. Beware taxpayers! Dated 23/7/21

https://bit.ly/3Pr4fRX

7. e-SPC via the MyTax link (by employers only) 23/2/21

https://bit.ly/3QrLOOr

8. With effect from 1/1/2021, IRB has changed new forms on 12/1/21

https://bit.ly/3QiNp97

9. 8 out 10 HR don’t do this for IRB (According to our experience) 21/12/20

https://bit.ly/3JVp07c

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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

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

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自雇人士公积金

自雇人士公积金
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自雇人士申请 KWSP i-Saraan 政府津贴 15%

1. 什么是KWSP I-Saraan ?

· KWSP I-Saraan是政府所推出的自雇人士自缴公积金补贴计划,让自雇人士为退休储蓄。

2. 谁属于自雇人士?

· 没有固定收入的自由业者

· 家庭主妇

· 独资经营者或合伙企业

· 小贩业者

· 网卖店主

3. I-Saraan 的6大好处?

· 保障会员未来的退休生活素质

· 为退休储蓄赚取EPF的年度红利

· 自行决定缴付限额 & 日期

· 豁免税务高达 RM4,000.00

· 身故赔偿:RM2,500

* 受公积金条款及细则约束

· 60 岁以下的会员每年可获得政府所补贴的 15% 或最高RM250的一次性津贴。这津贴将从 2018 年持续到 2022 年。

4. I-Saraan 申请条件

· 马来西亚公民

· 自雇人士

· 公积金会员

· 60岁以下

5. I-Saraan 如何申请

· 通过I-Saraan Online Registration网上提交,或是

· 提交KWSP 16G (M) 表格到临近的分行

6. 如何缴付I-Saraan?

· 银行网上转账

· 银行柜台

· 临近的EPF分行

· EPF线上户口 – I-Akaun

7. 更多详情请游览: · https://www.kwsp.gov.my/member/contribution/i-saraan

Source :

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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)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

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Horror Story in Accounting Firm

Horror Story in Accounting Firm
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Horror Story in Accounting Firm

Is working in an accounting firm a stressful job?

Below is an uncensored horror story from our colleagues from our Peak 2022 :

• Client call me the status today when they book in yesterday.

• Client only give me 2 hours to out audit for 2 company.

• Audit is kind of figure plug in job, all the information and listing is provide by client, why audit firm still need to charge few thousand Ringgit?

• Financial consultancies is part of auditor and tax job, Firm should giving guidance and a confirm answer to client, not matter is SST, custom duty, register of foreign worker, or every accounting double entry.

• Client expect auditor to check every single transaction in the management account to act as an account reviewer.

• Client always expect the tax agent can estimate the nearest tax estimation for the year with sales amount for certain months only.

• Client asked me to out account to his sister-in-law’s house because he said he kept the computer at his sister-in-law’s house.

• Client request report but revised management account with wrong costing calculation.

• During my peak, there is one client told us to do field audit for 2 hours only when there is a lot of document need to be vouched.

• Client call me to ask about my qualification and how long I work in a company for.

• Client always want us to confirm the tax treatment of the company which not audited or tax done by us.

• When we arrive client’ company, account personnel ask we sit down and listen talk around 1 hour.

• Client keep calling and said urgent things to discuss but end up talk about personal issue.

• Client insist to have virtual meeting whole day to watch them for vouching every single document required instead of email us directly the softcopies.

• No aircond and poor air ventilation when field work at client’s place, they ask us not to stay so long and finish audit quickly but they have many document we need to vouch.

• When vouching document one cockroach coming out from the file.

• Taking client’s file out from a dusty box, saw a 5cm dead spider inside the box.

• One of the client ask status after few days book in, he thought small business nothing inside we can finish within 1 day, but their accountant always didn’t make any audit adjustment. I have to adjust opening balance before proceed. This year also have a lot of audit adjustment, I guess they also didn’t make the adjustment to their account, pity next year PIC.

• Client ask specimen of charge form more than one time but still haven’t provide us charge form yet.

• Client request to increase RM1 share capital.

• Client reply the queries very slow but at the same time rushing us when can complete.

• Client request ctc for company statutory form but client refuse to pay printing fee, so client print out the documents by themselves and deliver to us for CTC. But some of the documents already ctc by previous secretary. End up we need to print a new pages to CTC with new secretary.

• Client give 1000+ pages of hard copy general ledger, refuse to give soft copy and expect to received final audited report in 1 week time due to bank request.

• Client spend 3 months to answer audit query, at the end blame us that could not meet our promise which complete the job within 2 months.

• When we ask for supporting document from client, they replied “You don’t believe your own client ah? How you do business? I think we have a trust issue now!”

• 顾客的opening balance 不对就早早book in 给我们了。然后说已经很早就book in了为什么 audit还没好?然后把我们当成是Accountant. 询问audit queries but 一个月后才回我们。

• Client does not provided the correct Management account and hope us can done it fast. Some of the accountants do not make adjustments for the subsequent year as per they promised would make adjustments in the next financial year.

• The book in client need us ask the same things every year. Eg some client know we need the term loan statement to proceed the term loan working paper but every year need us to ask for the statement.

 

Source :

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  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

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

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

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What is the tax treatment for income tax borne by the employer?

What is the tax treatment for income tax borne by the employer?
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What is the tax treatment for income tax borne by the employer?

Perquisite

Perquisite, in relation to employment, means benefits in cash or in kind that are convertible into money received by an employee from the employer or third parties in respect of having or exercising the employment.

What does tax borne by employer mean?

Do employers pay income tax for employees?

No, employers do not pay income taxes for their employees. Employees are solely responsible for income tax payments, which employers must withhold.

What if? There is good employer who pays employee tax?

The agreement by the employer to pay the income tax of the employee does not relieve the employee from tax liability on the amount of income tax borne by the employer.

'Income Tax is borne by employer' is a form of income and is chargeable based on Section 13(1)(a) of the ITA 1967.

In short, tax borne by the employer is a taxable perquisite to the employee.

Source :

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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

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

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Key Amendments to the Employment Act 1955

Key Amendments to the Employment Act 1955
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Key Amendments to the Employment Act 1955

Presumption of employment

The Bill provides that in the absence of a written contract and unless proven otherwise, there will be presumption of an employment relationship if the following factors are given:

  • his/her work or hours of work are subject to control by another person;

  • he/she is equipped with tools, material or equipment by another person to execute his work;

  • his/her work constitutes an integral part of another person's business;

  • his/her work is performed solely for the benefit of another person; or

  • payment is made to him/her for work done at regular intervals and it constitutes the majority of his/her income.

Calculation of wages for an incomplete month

The Bill provides a new section in the Act that introduces the below formula for calculating wages where an employee has not worked a full month:

Extension of maternity leave

Previously, the Act provided a 60 days maternity leave for all female employees, subject to the conditions of the Act. Now, when the Bill comes into force, eligible female employees will be entitled to 98 days of maternity leave.

Restriction on termination of pregnant employees

The Bill introduces a new section in the EA which prohibits an employer from terminating an employee who is pregnant or is suffering from an illness arising out of her pregnancy, except under specific circumstances such as willful breach of contract, misconduct or closure of the employer’s business. It is vital on employers to prove that the termination was not due to pregnancy.

Paternity Leave

Married male employees will now be entitled to 7 consecutive days of paternity leave up to 5 confinements.

Sexual harassment

The Bill introduces a new section which requires employers to conspicuously exhibit a notice to raise awareness of sexual harassment in the workplace. The sexual harassment provisions are still viewed as weak and limited. The Anti Sexual Harassment Bill 2021 would provide more guidelines upon being passed. It is currently in its first reading in Parliament.

Employment of foreign employees

Approval must be obtained from the Director-General of Labor to employ a foreign employee. Upon the employer satisfying the conditions listed in the Act, approvals are granted. Failure to obtain an approval is an offense, and on conviction, the employer shall be liable to a fine not exceeding RM 100,000 and/or to imprisonment for a term not exceeding five years.

Reduction on working hours

Previously, the Act provided 48 hours as regular working hours. With the Bill coming into force, the regular working hours will be reduced to 45 hours a week.

Flexible working arrangements

Employees can apply for flexible working arrangement, depending on the suitability of the working hours or work place. However, there is no legal obligation on the employer to grant this request. If the employer is to reject the request, they are required to provide grounds of refusal within 60 days of the application.

Discrimination

The Director General has the authority to investigate and decide disputes on discrimination in employment between employer and employee. Furthermore, the Director General has the power to make an order where necessary. However, this provision is vague and it does not define discrimination. Job seekers will not be able to rely on this provision as there is no employment relationship between an employer and job seekers, and as such this provision will not apply to protect job seekers from discrimination.

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What is Unclaimed Money Act in Malaysia

What is Unclaimed Money Act in Malaysia
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About the Unclaimed Money Act 1965

关于1965年无人认领款项法令

Minister of Finance appointed Accountant General as a Registrar to:

财政部长任命总会计师去执行以下责任:

 - Be a trustee to the unclaimed moneys received

- 成为收到的无人认领款项的受托人

 - Refund the unclaimed moneys to claimants

- 将无人认领的款项退还给索赔人

 - To ensure company comply with the Act

-确保公司遵守该法令

 - To impose penalty if offence committed

- 如果发现犯罪,将处以罚款

What are unclaimed money?

什么是无人认领的款项?

1.       You are required to pay money to the person/company legally but remained unpaid more than one year.

Such as: Salaries, bonus, dividend, fixed deposit, sundry creditors and etc

你依法应支付但超过一年仍未支付的款项

例如:薪水,员工花红,股息,定期存款,杂项供应商等等

 2.       Bank account has no any transaction for more than 7 years.

Such as: saving account, current account and fixed deposit (with automatic renewal instruction)

 银行存款超过七年没有交易

例如:储蓄户口,来往户口,自动更新的定期存款

 3.       Trade creditor or trade debtors (credit balance) remained dormant more than 2 years

 供应商或 顾客(credit balance)保持休眠状态超过两年

How to register and lodge unclaimed moneys?

如何登记和提交无人认领款项?

 Company shall record all unclaimed moneys in a register.

持有无人认领款项的公司应将所有无人认领款项记录在登记册中,

Company shall lodge register all the unclaimed moneys up to 31 December annually together with unclaimed moneys by 31 Mar of next year

公司每年需提交直至12月31日无人认领款项详情以及支付

截止日期:隔年3月31日

Guideline on submission of unclaimed moneys (2020 edition)

提交无人认领款项指南(2020年版)

http://www.anm.gov.my/images/bwtd/2020/BI/2.%20Guideline%20on%20Submission%20of%20%20Unclaimed%20Moneys%20(2020%20Edition).pdf

If you didn’t do so?

如果你不做,会怎样?

Company and every officer who is in default is liable to a fine not exceeding RM 20,000.

A further fine not exceeding RM1,000 for each day if the offence continues.

公司以及有关联人物将处以不超过两万令吉的罚款。再犯者,将另外处以每天不超过一千令吉的罚款

 Reference:

http://www.anm.gov.my/images/PDF/wtd/Lampiran%201%20(English%20Version).pdf

http://www.anm.gov.my/images/bwtd/2020/BI/2.%20Guideline%20on%20Submission%20of%20%20Unclaimed%20Moneys%20(2020%20Edition).pdf

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#unclaimedmoney

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IRB New Public Ruling 2022

IRB New Public Ruling 2022
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IRB New Public Ruling 2022

Public Ruling 2/2022 - Tax Incentive for Organising Conference in Malaysia

This PR is the 1st edition and the objective of this PR is to provide an explanation on the tax incentive available to conference promoter promoting and organising conferences in Malaysia as its main activity and

Public Ruling 3/2022 - Taxation of Foreign Fund Management Company

This PR is the 3rd edition and it replaces the PR No.7/2019dated 3 December 2019 with new updates and amendments.

Source

PR 2/2022 Tax Incentive For Organising Conferences In Malaysia

https://phl.hasil.gov.my/pdf/pdfam/PR_02_2022.pdf

PR 3/2022 Taxation Of Foreign Fund Management Company

https://phl.hasil.gov.my/pdf/pdfam/PR_03_2022.pdf

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What is tax corporate governance framework LHDN?

What is tax corporate governance framework LHDN?
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What is tax corporate governance framework?

A strong tax governance framework establishes the techniques and processes within the organisation to identify tax risks, assess risks and sets out the appropriate actions to mitigate the impact of those tax risks.

Objective of TCGF

The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company. Corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies.

Background

The Inland Revenue Board (IRB) has launched the Tax Corporate Governance (TCG) Framework during the opening ceremony of the IRB's 26th Hari HASiL celebration and has recently published the TCG Framework and the TCG Guidelines. The introduction of the TCG Framework is part of the IRB’s initiative towards adopting a co-operative tax compliance that is both fair and effective in Malaysia.

Benefits of TCGF

Organisations will be able to enjoy the following benefits upon their participation in the TCG Programme :

I. Reduced scrutinization of compliance activities.

  •  Lesser tax audits will be conducted.

  •  Higher materiality or reduced sample size.

II. Expedite tax refunds.

 Accelerate tax refund process for compliant participants, provided no anomalies are

noted the best endeavour will be given to expedite refunds.

III. Appointment of a dedicated tax officer.

 A single point of contact between the taxpayer and the IRBM.

IV. Expedite any ongoing dialogue on technical matters.

  •  Priority consideration

  •  Eligible to be granted priority consideration for compliant participants, which are:

- Consideration will be given accordingly in respect of tax penalty rates.

- Step down of compliance activities.

TCGF at a glance

TCG is suitable for all sizes and types of businesses that give priorities and resources to corporate governance matters.

TCG Programme is currently being implemented as a pilot project. However, the interested organisations are advised to adopt and execute the framework.

TCG in Malaysia is currently being implemented as a pilot project. Therefore, selected organisation will receive an invitation from IRBM to join the programme.

Other interested organisations may contact IRBM via tcg@hasil.gov.my to communicate their interest.

Once an organisation is accepted into the programme, the TCG status will be valid for 3 years subject to terms and conditions stated in the offer.

There will be no fees charged to participate in the programme.

These expenses are capital in nature and not allowable for tax deduction under subsection 33(1) ITA 1967.

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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

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

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Benefits of Malaysia Digital

Benefits of Malaysia Digital
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MSC Malaysia is now rebranded to Malaysia Digital (MD) Part 3

Benefits of MD

MD Status companies are eligible to access orapply for, amongst others:

1. Foreign knowledge worker quota and passes;

2. Tax incentives (income tax exemption or investment tax

allowance);

3. Multimedia/ICT equipment import duty and sales tax exemption;

4. Competitive and ready infrastructure for business available at

MD Cybercities/Cybercentres;

5. Freedom of ownership by exempting from local ownership

requirements;

6. Flexibility to source capital and funds globally; and/or

7. MDEC as the one-stop agency for MD Status companies.

Other Benefits

MD Status companies are also eligible to access facilitation of other benefits

such as:

1. Access to local and international market and ecosystem;

2. Business matching and partnership;

3. Grant and funding facilitation; and/or

4. Participation in MD catalytic programmes.

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  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

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

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

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MSC Malaysia is now rebranded to Malaysia Digital (MD) Part 2

MSC Malaysia is now rebranded to Malaysia Digital (MD) Part 2
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MSC Malaysia is now rebranded to Malaysia Digital (MD) Part 2

Eligibility Criteria

To be eligible to apply for the award of MD Status, a company is required to

meet the following criteria:

(a) Incorporated under the Companies Act 2016 and resident in Malaysia; and

(b) Proposing to carry out or is currently carrying out one or more of the

MD activities.

Approved Activities

MD activities are listed as below. The activities, upon approval of MD Status, will be known as “MD Approved Activities”

Research, development and commercialization of solution and/or provision of services in relation to any of the following technologies or areas:

1. big data analytics (BDA);

2. artificial intelligence (AI);

3. financial technology (Fintech);

4. internet of things (IoT);

5. cybersecurity (technology/software/design and support);

6. data centre and cloud;

7. blockchain;

8. creative media technology;

9. sharing economy platform;

10. user interface and user experience (UI/UX);

11. integrated circuit (IC) design and embedded software;

12. 3D printing (technology/software/design and support);

13. robotics (technology/software/design);

14. autonomous technologies;

15. systems/network architecture design and support;

16. global business services or knowledge process outsourcing;

17. virtual, augmented and/or extended reality;

18. drone technology;

19. advance telecommunication technology ; or

20. other emerging technologies deemed significant for the digital ecosystem subject to approval by the Approval Committee.

Conditions

Conditions to be complied within 12 months from date of award of MD Status:

1. Commencement of operation and undertaking of the MD Approved Activities in Malaysia.

2. Minimum 2 full-time employees (comprising knowledge workers) with minimum average monthly base salary of RM5,000.00, employed for the MD Approved Activities.

3. Minimum annual operating expenditure of RM50,000.00 incurred for the MD Approved Activities

4. Paid-up Capital Minimum of RM1,000.00

To be continued…benefits of MD

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MSC Malaysia is now rebranded to Malaysia Digital (MD)

MSC Malaysia is now rebranded to Malaysia Digital (MD)
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MSC Malaysia is now rebranded to Malaysia Digital (MD)

This new enhanced initiative serves to accelerate the sustainable growth of Malaysia’s digital economy and create substantial digital economic spill-over through equitable access to digital tools, knowledge, and income opportunities. Malaysia Digital will drive the digital transformation of focus areas that present high growth potential, opportunities and importance.

The Government of Malaysia, through Malaysia Digital Economy Corporation

(MDEC), awards MD Status to eligible companies that participate in and undertake any of the MD activities.

The grant of MD Status entitles eligible companies to a set of incentives, rights and privileges from the Government of Malaysia.

MSC Malaysia

Since its introduction in 1996, MSC Malaysia has catalysed and transformed

Malaysia into a knowledge-based economy. The strategic initiative was created to foster a conducive ecosystem driven by high-end infrastructure development and ICT companies’ catchment within the identified corridors.

MSC Malaysia, driven by the Malaysia Digital Economy Corporation (MDEC) as

the nation’s lead digital economy agency, has contributed immensely towards the growth of the nation’s digital economy.

Since 1996 Malaysia has attracted 2,794 active MSC-status companies.

Transition from MSC to MD

The existing MSC status and benefits would continue to subsist, subject to compliance of existing conditions by the companies, institutes of higher learning or incubators.

MD companies would soon have the flexibility to choose the benefits (with or without tax incentives) with applicable conditions with further details to be announced soon.

The existing companies are not required to reapply, but MD would be implied to existing MSC companies.

What new under MD

  • The bill of guarantees,

  • Non-location-based incentives

  • An expansion of locations for promoted activities.

To be continued…Conditions, status and benefits of MD

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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)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

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Service Tax on the Goods Delivery Service

Service Tax on the Goods Delivery Service
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The service tax on the Goods Delivery Service

Royal Customs Malaysia Department announced on 30 June 2022 that Service Tax on Delivery Services Providers (including E-Commence Platform) which be effective on 1st July 2022 postpone to a later date.

Background Information

Budget 2022 announced that the scope of service tax be expanded to include goods delivery services regardless of the status of the service providers (licensed or not) but exclude delivery services for food and beverages as well as logistic services.

Source

Royal Custom Malaysia Department Announcement 30/6/2022

https://mysst.customs.gov.my/News#section14

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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)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

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LHDN foreign source income

LHDN foreign source income
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Update taxability 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.

Finally the following orders has been gazetted recently :

  • Income Tax (Exemption) (No. 5) Order 2022 - Exemption of FSI received by resident individuals.

  • Income Tax (Exemption) (No. 6) Order 2022 - Exemption of foreign-sourced dividends received by resident companies, limited liability partnerships (LLPs) and individuals in relation to a partnership business in Malaysia.

 

Key Salient Points on The Order

  • Exemption period 1/1/2022 to 31/12/2026 for resident individual

  • All sources of income under Section 4 of ICA 1967 for resident individual on FSI received in Malaysia from outside Malaysia.

  • Income arising from outside Malaysia which is bought into Malaysia.

  • FSI except for dividend income that is received in Malaysia from outside Malaysia for companies and LLPs will subject to :

    • Amounts received from 1/1/2022 to 30/6/2022 – 3%

    • Amounts received after 30/6/2022 – prevailing income tax rate

Past Blog

Read our past blog posting from FSI :

1. Confusion on the exemption of foreign source income dated on 30/05/2022

https://bit.ly/3yVOooj

2. 马来西亚对海外收入征税政策 dated on 18/03/2022

https://bit.ly/3csapUe

3. Foreign source income taxable in Malaysia 2022 dated on 11/01/2022

https://bit.ly/3KL1NUx

4. (u-turn update) foreign source income budget 2022 dated on 31/12/2021

https://bit.ly/3tXbici

5. FAQ on Special Income Remittance Programme (PKPP) dated on 27/12/2021

https://bit.ly/3CFoNBq

6. Special Income Remittance Programme (PKPP) to Malaysian Residents dated on 8/12/2021

https://bit.ly/35ObF0Z

7. 预算案 2022 dated on 19/11/2021

https://bit.ly/3tYpdPz

8. Budget 2022 - SME edition dated on 18/11/2021

https://bit.ly/3tRcq1i

9. Foreign source income taxable in Malaysia dated on 10/11/2021

https://bit.ly/3w5BG6y

10. Foreign Income Remitted Into Malaysia Taxable 2022 on 2/11/2021

https://bit.ly/3tTfJVI

11. 海外收入汇回大马时将被征税 dated on 2/11/2021

https://bit.ly/3Imb8k9

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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)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

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马来西亚 所得税 的 违法行为与刑罚

马来西亚 所得税 的 违法行为与刑罚
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马来西亚 所得税 的 违法行为与刑罚

  • 没有交 “所得税申报表” - RM200.00至RM20,000.00 /监禁不超过6个月/两者

  • 纳税人未通知所得税- RM200.00至RM20,000.00 /监禁不超过6个月/两者

  • 省略或低估收入来作不正确的所得税申报表- RM1,000.00 至RM10,000.00 / 200%的少收税款

  • 提供任何不正确信息 - RM1,000.00 至RM10,000.00 / 200%的少收税款

  • 逃避或协助任何他人逃税RM1,000.00 至RM20,000.00 /监禁不超过36个月/两者/300%的少收税款

  • 协助其他人低估收入 - RM2,000.00 至RM20,000.00 /监禁不超过36个月/两者

  • 尝试不缴税就离开国家 - RM200.00 至RM20,000.00 /监禁不超过6个月/两者

  • 阻碍IRBM官员执行其职责 - RM1,000.00至RM10,000.00 /监禁不超过1年/两者

  • 无法保留正确的记录和文档 - RM300.00至RM10,000.00 /监禁不超过1年/两者

  • 无法遵守IRBM要求提供某些信息的通知 - RM200.00至RM20,000.00 /监禁不超过6个月/两者

  • 在3个月内未通知地址更改 - RM200.00至RM20,000.00 /监禁不超过6个月/两者

  • 4月30日之后交税 (non business) -10%罚款应纳税额

  • 6月30日之后交税 (business)- 10%罚款应纳税额

  • 在截止日期的30天后分期付款 - 10%罚款应纳税额

  • 实际税款比修订后的税款估算高出30% - 实际税收余额和估计税收的差额的10%

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KTP (Audit, Tax, Advisory)

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PERKESO:6月1日起取缔未登记或投保的雇主

PERKESO:6月1日起取缔未登记或投保的雇主
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PERKESO:6月1日起取缔未登记或投保的雇主

我国社会保险机构将从6月1日起,在全国各地展开侦查行动,取缔未遵守社险法令的雇主。

社险法令

Section 95A of Employees’ Social Security Act 1969 规定了, 可以对任何犯有雇员 under Regulation 2 of the Employees’ Social Security (Compounding of Offences) Regulations 2006.

Regulation 2 of the Employees’ Social Security (Compounding of Offences) Regulations 2006 已于 2006 年 3 月 1 日刊宪并生效。

罚单

SOCSO 在收到有关已犯下雇主罪行,会发出通知。

罪行通知的提议有效期为 14 天。如果在 14 天内全额支付了报价金额,则不会采取进一步行动。

但是,如果在发出罪行通知后 14 天或未付款,则将启动进一步的起诉行动,恕不另行通知。

罪行种类

  • 雇主没有注册社险 - 罚款最高 4000 令吉

  • 雇主没有为员工注册社险 - 罚款最高 3000 令吉 (一名工人)

  • 未能出示或没有员工登记册 - 罚款最高 600 令吉

  • 迟于通知 Accident 事故 - 罚款最高 1500 令吉

  • 未能缴纳 correct 社险 - 罚款最高 600 令吉

雇主或雇员如因以上罪行被判有罪,可被罚款不超过 10,000 令吉或监禁 2 年或两者兼施

雇主强制需帮员工注册和缴纳社险

  • 就算只聘请1位员工

  • 就算雇主和员工是亲戚关系

  • 就算学徒合约 or 合约形式受聘的雇员

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amended return form lhdn

amended return form lhdn
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Overview

Taxpayers are allowed to make amendment on the information or assessment for the submitted Tax Return Form(TRF) under Section 77B of the Income Tax Act 1967 (ITA 1967) or Section 30B of Petroleum (Income Tax) Act 1967 (PITA 1967) by using the Amended Return Form (ARF).

Key takeaway

You will understand:

  • Rules of submission

  • Terms for submission

  • Rate of increase in tax

  • Method of submission

Summary of learning

Taxpayers are allowed to make amendment when there is:

  • Understate of income / unreported income

  • Expenses over claimed

  • Capital allowances / incentives/ relief over claimed

The amendment limit to once for a year of assessment.

The amendment is disallowed if the Director General of Inland Revenue (DGIR) has made amended assessment for the submitted TRF.

What are the terms for submission ARF?

ARF must be submitted within 6 months from the due date of TRF

A duly completed ARF must state:

  • the amount / additional amount of chargeable income

  • the additional tax payables

  • the amount of tax payable on the tax which has or would have been wrongly repaid;

  • the increased sum ascertained in accordance with subsection 77B (4) of ITA 1967 or subsection 30B(4) of ITA 1967;

  • other contains required by the DGIR.

What is the rate of increase in tax?

The additional tax payable amount in ARF is subject to an increase in tax of 10%.

The formula = the amount of such tax payable or additional tax payable x 10%.

The total tax payable amount must be paid at the same date of ARF is submitted.

What are the methods for submission ARF?

ARF can be submitted in the following ways:

  • Online e-filing (only for corporate taxpayer: Form C)

To visit https://mytax.hasil.gov.my > click e-Filing > click e-Form > choose e-BNT C

  • Manual filing

    - download ARF on Lembaga Hasil Dalam Negeri (LHDN) website:

    To visit http://www.hasil.gov.my > Forms > Download Forms (in Malay Version) > Handle the completed ARF to LHDN branch

Sources

GPHDN 1/2020: - Procedure on submission of Amended Return Form

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CP204 Deferment 2022

CP204 Deferment 2022
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CP204 Deferment 2022 is Over

The deferment is over. Taxpayers continue CP204 monthly tax payment before 15th every month with effect from July 2022.

KTP have emailed & whatsapped our clients on the tax instalment notification recently. Please check your email/whatsapp otherwise contact KTP on urgent basis.

Background

The Postponement of Estimated Tax Payable (CP204) and Instalment Payment Scheme (CP500) will be given automatically to qualified taxpayers with the status of micro, small and medium enterprises (MSMEs or PMKS) from Jan 1 to June 30, 2022.

6 instalment deferment

The Inland Revenue Board (IRB) informed that qualified taxpayers are based on records or the latest Income Tax Statement Form received by the board.

CP 204 deferment

For CP204 payment, business criteria that qualify for the PMKS status are companies, cooperatives, trust bodies and limited liability partnerships with a paid-up capital of less than RM2.5 million for ordinary shares at the start of the basic period of an assessment year.

In addition, the entity’s gross business income of RM50 million or below for an assessment year.

The postponement of CP204 payment to the taxpayer who fulfils the criteria will be sent via registered email with HASiL (the IRB).

What if taxpayers don’t want the deferment?

Taxpayers want to maintain the current tax instalment scheme.

  • IRB is not required to be notified as qualified taxpayers are allowed to follow the original CP 204 or CP 500.

  • Any tax instalments paid during the deferment period will be treated as payments towards the tax instalments for those respective months and will not be allowed to be carried forward for settlement of tax instalments after the deferment period.

Tax estimation

No changes to existing eligibility to revise tax estimates in the 6th or the 9th month and the special 11th month revision (subject to existing conditions)

CP500 deferment

The IRB informed that the postponement of CP500 payment is allowed automatically to all taxpayers concerned for the 2021 assessment year payment (for the payable date of Jan 1, 2022) and the 2022 assessment year payment (for the payable dates of March 1, 2022 and May 1, 2022).

FAQ on deferment

Frequently asked questions (FAQ) on the postponement could be accessed via the link https://phl.hasil.gov.my/pdf/pdfam/SOALAN_LAZIM_PINDAAN_BAJET_2022_CP204.pdf and the public can contact the HASiL Recovery Call Centre (HRCC) at 03-8751 1000 for further information.

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THK (Secretarial, Account, Payroll, Advisory)

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Intercompany Management Fee

Intercompany Management Fee
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Common Tax Mistakes -Intragroup Services on Management Fee

Intragroup Services

Intragroup services are services provided by one or more members of a multinational group for the benefit of the other members within the group. In general, the types of services that members of a multinational group can provide to each other include, but are not limited to, management services, administrative services, technical and support services, purchasing, marketing and distribution services and other commercial services that typically can be provided with regard to the nature of the group's business.

The costs of such services, initially borne by the parent or other service companies within the multinational group, are eventually recovered from other associated persons through intragroup arrangements.

Non Chargeable Intragroup Services

Shareholder activities

Shareholder activity refers to an activity that one group member (usually the parent company) performs solely because of its responsibility as a shareholder due to its ownership interest in one or more members of the group.

Examples of non-chargeable shareholder activities include:

  • Costs pertaining to the juridical structure of the parent company such as meetings of shareholders of the parent company, issuing of shares in the parent company and costs of the supervisory board;

  • Costs relating to the reporting and legal requirements of the parent company such as producing consolidated accounts or other reports for shareholders, filing of prospectuses; and

  • Costs of raising funds for the acquisition of new companies to be held by the parent company (distinct from fund raising on behalf of its existing subsidiaries).

Duplicative services

Duplicative services are services performed by a group member that merely duplicates a service that another group member is already performing in-house, or that is being performed by a third party.

In such instances, any duplicative claim will be automatically disallowed. The ability of a group member to independently perform the service (for instance in terms of qualification, expertise and availability of personnel) shall be taken into account when evaluating the duplication of services performed.

Example 1

A subsidiary has qualified personnel to analyse its capital and operational budget. This analysis is then reviewed by the parent company's financial personnel. The review by the parent company is considered duplicative.

However, there are exceptions in which duplication of services can be charged such as:

  • Special circumstances where duplication is only temporary. For example in implementing a new system, a company may simultaneously continue to operate an existing system for a short period, in order to deal with any unforeseen circumstances that may arise during the initial implementation; or

  • To reduce the risk of a wrong business decision such as by getting a second legal opinion on a particular project

Services that provide incidental/passive association benefits

This refers to services performed by one member of a multinational group, such as a shareholder or coordinating centre, which relates only to specific group members but incidentally provides a benefit to other members of the group.

Incidental benefit may also arise as a consequence of an associated person being part of a larger concern and not because of a service that has actually been provided. Such incidental benefits would not warrant a charge to the incidental recipient because the perceived benefit is so indirect, and remote, that an independent person would not be willing to pay for the activities giving rise to the benefit and therefore should not be considered as intragroup service to the incidental recipient.

Example 2

An enterprise that had obtained a higher credit rating due to it being a member of a multinational group should not be charged for its mere association with the group. However, if the higher credit rating is due to a guarantee provided by another group member, then an intragroup service can be considered to have been rendered

On-call services

An on-call service is where a parent company or a group service centre is on-hand to provide services such as financial, managerial, technical, legal or tax advice to members of the group at any time.

This service is considered non-chargeable under the following circumstances:

  • Service is easily and promptly available even without any standby arrangement;

  • The potential need for such service is remote;

  • Where there is no/negligible benefits derived from the service.

If there are exceptional circumstances which require on- call services to be considered as chargeable services, it must be proven that an independent person in comparable circumstances would incur such charges to ensure availability of the services when the need for them arises

Source : IRBM Chapter VI-Intragroup Services

CHAPTER VI - Intragroup Services | Lembaga Hasil Dalam Negeri Malaysia

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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, outsource bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks


 


 


 

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
 
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