Tax

What PCB Audit is searching for and taxpayers often neglect?

What PCB Audit is searching for and taxpayers often neglect?
View Full Size

(update) PCB Audit - What PCB Audit is searching for and taxpayers often neglect?

What is PCB in LHDN?

PCB stands for ''Potongan Cukai Bulanan'' which is Malay for ''Monthly Tax Deduction''. It is a series of monthly deductions that go towards payment of your taxes in relation to your employment income. These monthly deductions are retained by your employer and paid over to the Inland Revenue Board (LHDN).

Essential Documents for a Successful PCB Audit.

In the process of undergoing a PCB (Potongan Cukai Berjadual) audit with Lembaga Hasil Dalam Negeri (LHDN), it's crucial to have the necessary documentation ready. Here's a rundown of the essential documents to streamline the audit process and ensure compliance.

1. Employee pay slip

A comprehensive document of an employee's earnings and deductions.

2. Payment Vouchers

These reflect transactions not stated in the pay slip, such as car loan installments.

3. CP39

Outlines employee details and monthly PCB deductions for each employee.

4. Certificate of Registration

Reflects the company’s legal standing.

5. Financial Statements

Present a comprehensive overview of the company's financial health.

6. EA Forms

Show the details of total remuneration and benefits provided to each employee.

7. Employee Details List

A listing to establish the composition and history of the workforce.

8. TP 1, TP 2 and TP 3

Salary payouts have taken into account deductions for relief.

9. CP 21, CP 22 and CP 22A

Updates regarding changes in employment.

Final Words

It's essential to maintain accurate records and be prepared for any potential queries or requests that may arise during the audit.

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 (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.

#Thk

#KTP

 

Sales Tax Exemption For The Manufacturers

Sales Tax Exemption For The Manufacturers
View Full Size

Sales Tax Exemption For The Manufacturers

If you're an official manufacturer, Schedule C in the Sales Tax Exemptions offers great advantages. It lets manufacturers buy materials tax-free, prevents them from being taxed twice, and makes it easier to get raw and packaging materials. This helps improve and speed up production.

Let’s unveil what Schedule C could offer to manufacturers.

1. What's it all about Schedule C in the Sales Tax Exemption?

Schedule C, a beacon of financial relief, exempts sales tax for registered manufacturers acquiring materials for the production of taxable goods. It also opens doors to tax-free subcontractor processing.

2. Who is eligible?

• Item 1 : Offers a sales tax exemption for raw materials, components, and packaging materials (excluding petroleum). These can be imported or purchased from registered manufacturers, licensed warehouses, or licensed manufacturing warehouses by any registered manufacturer.

• Item 2 : Comes into play for raw materials, components, packaging materials, and petroleum acquired or imported by registered petroleum product manufacturers from other registered manufacturers, licensed warehouses, or licensed manufacturing warehouses.

• Item 3 : Extends the exemption to raw materials, components, and packaging materials (excluding petroleum) purchased or imported by individuals representing registered manufacturers from registered manufacturers, licensed warehouses, or licensed manufacturing warehouses.

• Item 4 : Provides relief for raw materials, components, packaging materials, and petroleum purchased or imported by individuals representing registered petroleum product manufacturers from registered manufacturers or licensed warehouses.

• Item 5 : Ensures no taxation for semi-finished or finished taxable goods returned by subcontractors to registered manufacturers after completing subcontracted work.

3. Qualifying Categories of Materials

• Raw materials and components

These vital elements become integral parts of the finished product, directly contributing to the manufacturing process.

• Packaging materials

This category encompasses materials like boxes, cartons, containers, crates, cases, pallets, and bandages used to package finished goods. It also includes non-returnable transportation-related materials and labels for identifying finished goods.

With Schedule C as your ally, you can navigate the intricate landscape of sales tax exemptions, fostering growth, efficiency, and financial stability within your manufacturing endeavors.

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 (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.

#Thk

#KTP

 

What are the new TP rules 2023?

What are the new TP rules 2023?
View Full Size

(Tax Update)Transfer Pricing Rule 2023

The Income Tax (Transfer Pricing) Rules 2023 (“TP Rules 2023”) have been gazetted on 29 May 2023 and will take effect from the year of assessment (“YA”) 2023 and subsequent YAs. TP Rules 2023 replaces the Income Tax (Transfer Pricing) Rules 2012 (“TP Rules 2012”).

Malaysia's New Transfer Pricing Rules 2023: Key Highlights

Introduction and Applicability

  • Effective from the year of assessment (YA) 2023 onwards.

  • Previous 2012 Transfer Pricing Rules are revoked. TP Rules 2012 remains applicable for prior YAs?

Contemporaneous TP Documentation

  • Must be prepared prior to tax return filing due date.

  • The date of preparation must be clearly stated.

  • New schedules (Schedules 1, 2, and 3) are added detailing specific documentation requirements.

  • Taxpayers must indicate when the TP documentation is finished.

  • Documentation must contain foundation documents and supporting materials.

  • Documentation must be submitted to IRB within 14 days upon request.

  • The Director General (DG) of the IRB can issue guidelines to facilitate the new rules.

Arm’s Length Range

  • Defined as figures between 37.5 percentile to 62.5 percentile.

  • If a transaction price is within this range, it's regarded as the arm's length price.

  • The DG can adjust to the median or above due to comparability defects.

  • If outside the range, the median becomes the arm's length price.

  • Up to 5% surcharge can be applied on TP adjustments by DG.

Comparability Analysis

  • Precise delineation of controlled transactions emphasized.

  • Use of prior year data outlined with specific purposes.

  • The DG can change the selected method if deemed more appropriate.

Definitions and Changes

  • Definitions added or amended: ''Multinational Enterprise Group”, “Profit Level Indicator”, “Intangible Property”, “Marketing Intangibles”.

  • Re-characterization of transactions and offsetting adjustments provisions from 2012 rules removed.

Practical Considerations for Taxpayers

  • The new rules provide clarity but have challenges.

  • DG can still adjust to the median, even if within arm's length range.

  • Definition gaps on what constitutes a comparability defect.

  • Additional documentation is required, especially for Multinational Enterprise Groups.

  • The burden on taxpayers to maintain and prove documentation.

  • The use of non-Malaysian benchmarking studies is not clarified.

  • Removal of offsetting adjustments provision from 2012 rules; now discretionary for DG.

Next Steps for Taxpayers

  • Begin preparation to meet Schedule 1 requirements.

  • Assess operational conditions and update the documentation accordingly before tax return filing.

Source:

IRB : Transfer Pricing Rule 2023

https://www.hasil.gov.my/media/bksd1zsm/pua165_2023-tp-rule-2023.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 (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.

#Thk

#KTP

 

E-Invoicing Malaysia - Transition Challenges and Strategies

E-Invoicing Malaysia - Transition Challenges and Strategies
View Full Size

E-Invoicing Malaysia - Transition Challenges and Strategies

Introduction

An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.

An e-Invoice contains the same essential information as a traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.

Transition Challenges and Strategies

Implementing e-invoicing can bring numerous benefits to businesses, such as streamlined operations, improved cash flow, and enhanced compliance. However, the journey to full e-invoicing implementation can be fraught with challenges. Here are some of the most common challenges and considerations when implementing e-invoicing:

Integration with Existing Systems

Many companies use legacy systems for their accounting and invoicing needs. Integrating new e-invoicing solutions with these systems can be complex and require significant IT resources.

Adherence to Local Regulations

E-invoicing regulations vary from country to country. Ensuring compliance with different regulatory environments, especially for multinational corporations, can be a daunting task.

Data Privacy and Security

Protecting sensitive financial data is crucial. Ensuring the e-invoicing solution is secure from cyber threats, and adhering to data privacy regulations, is paramount.

Resistance to Change

Employees accustomed to traditional invoicing methods might resist the change to electronic formats. This can be due to a lack of understanding, fear of job redundancy, or simple inertia.

Training and Education

Ensuring that the staff is well-trained and comfortable with the new system can be time-consuming, especially if the e-invoicing solution is significantly different from the previous system.

Ensuring Data Accuracy

Automated systems rely on accurate data input. If the data entered is incorrect, it can lead to complications like incorrect invoicing, which can disrupt cash flows and client relationships.

Supplier and Customer Adoption

Even if your company is ready for e-invoicing, your suppliers and customers might not be. Encouraging them to shift to e-invoicing and ensuring compatibility can be a challenge.

Cost Implications

There might be initial costs associated with procuring e-invoicing software, integrating it with existing systems, and training employees.

Scalability Concerns

As the business grows, the e-invoicing solution should be able to handle increased volumes without compromising on performance.

Diverse Formats and Standards

Different industries or countries might have varying e-invoicing formats or standards. Ensuring compatibility across these formats can be challenging.

Previous Updates on E-Invoicing

  • Are you ready for e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-are-you-ready/10aug23

  • The coverage of e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-coverage/3aug23

  • The timeline of e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-timeline/2aug23

  • The workflow of e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-the-workflow/31jul23

Source

IRB E-Invoicing Guide version 1.0 https://www.hasil.gov.my/en/e-invoice/

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

Double Tax Deduction on Hiring Interns

Double Tax Deduction on Hiring Interns
View Full Size

Double Tax Deduction on Hiring Interns

Background of MySIP

The National Structured Internship Programme (MySIP) is developed to encourage companies to provide meaningful practical learning experiences through approved structured internships module for students.

As an employer who hires Malaysian full-time students from local IPTA or IPTS including higher learning institutions abroad and TVET institutions to undergo a structured internship programme endorsed by us, you will be eligible for a double tax deduction incentive for related expenses incurred on the interns throughout the programme.

Key Takeaways

Taxpayers can claim the Structured Internship Programme(SIP) for YA2023 – YA2025 after receiving approval from Talent Corporation Malaysia Berhad.

However, the application portal to apply for SIP will only open at the beginning of January 2024.

In order to qualify for the double deductions, you shall obtain the approval letter from Talent Corporation Malaysia Berhad confirming that the internship programme conducted an approved internship programme.

Effective date:

From the year of assessment 2022 until the year of assessment 2025

PU Order

  • P.U(A) 188 Income Tax (Deduction for expenditure incurred for the provision of approved internship programme) (amendment) rules 2023 made: 26.05.2023

    https://lom.agc.gov.my/.../outputp/1828756/PUA%20188.pdf

  • P.U (A) 398 Income Tax (Deduction for expenditure incurred for the provision of approved internship programme) rules 2019 made: 30.12.2019

    https://lom.agc.gov.my/.../outputp/pua_20191231_PUA398.pdf

Terms and conditions of MySIP

To qualify for the MySIP incentive, your organisation must fulfil the following criteria:

  • Provide a minimum internship period of ten (10) weeks

  • Pay a minimum monthly allowance of RM600 for master’s degree, bachelor’s degree and Professional Certificate or equivalent

  • Pay a minimum monthly allowance of RM500 for diploma/Malaysian Skills Certificate (SKM) Level 1 to Level 5 or equivalent

  • Provide an internship framework that includes practical experience and emphasizes on the development of specific knowledge or skills for students and approved by TalentCorp

  • Registered with the Companies Commission of Malaysia (SSM)

  • Complete your MySIP registration at www.mynext.my

Contact TalentCorp

For more information on the MySIP or to get in touch with the team, you can write to: sip@talentcorp.com.my

Past KTP Blog on the MySIP

Below is the link KTP Blog for the double tax deduction on hiring interns posting: -

  • Structured internship Programme TalentCorp - No Gazette Order dated 17.02.2023

    https://rb.gy/xp29f

  • Structured internship Programme TalentCorp dated 18.10.2022

    https://rb.gy/fpfux

  • A Government Program to Help You Get Interns with Double Tax Deduction dated on 5.10.2020

  • https://shorturl.at/mox03

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 (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.

#Thk

#KTP

 

Is a bank guarantee fee tax deductible?

Is a bank guarantee fee tax deductible?
View Full Size

Latest Update Tax Deductible of Bank Guarantee Fee

Persatuan Nelayan Kebangsaan

The Court of Appeal has recently determined that Bank Guarantee fees qualify as tax deductible under Section 33(1) of the Income Tax Act 1967.

The taxpayer, a society founded by the Agriculture Ministry, is principally engaged in providing subsidised diesel to fishermen. In facilitating this mission, the society has entered into contracts with Shell and PETRONAS to secure a consistent diesel supply. The society, in turn, markets this diesel to the fishing community.

In adhering to the terms of a 30-day credit period established by the suppliers, the society sought a Bank Guarantee, periodically renewed, to assure payment to its suppliers. The associated fees paid to the bank were deducted by the society as a business expense for income tax purposes.

Capital in Nature - SC & HC

The Revenue contested this deduction, categorizing the Bank Guarantee fees as capital expenditure rather than a direct expense for purchasing diesel. The High Court sustained the Revenue’s position.

The Court of Appeal

Upon appeal to the Court of Appeal, the society's objection was accepted.

The court highlighted that in the absence of the bank guarantee, the society would need to explore alternative financing methods, such as taking out a loan to purchase the diesel. The court further noted that such a loan would inevitably involve interest, which the Revenue would have permitted as a deductible expense.

As such, the Court of Appeal found no substantive difference between utilizing a bank guarantee or a loan to facilitate diesel acquisition.

Case Summary

A brief summary of the case details:

a. The Taxpayer procured diesel supplies from Shell Malaysia Trading and Petronas Perdagangan Berhad (“Suppliers”).

b. Per the agreement with the Suppliers, the Taxpayer needed to secure a bank guarantee before initiating the agreement.

c. Thus, the Taxpayer obtained a bank guarantee from Bank Islam Malaysia Berhad, incurring a bank guarantee fee in the process.

d. Following a tax audit by the Inland Revenue Board of Malaysia (“IRB”), a notice of additional assessment disallowing said bank guarantee fee was issued.

e. Dissatisfied with this decision, the Taxpayer appealed to the Special Commissioners of Income Tax (“SCIT”), who ruled in the Taxpayer’s favor.

f. The IRB subsequently appealed against the SCIT’s verdict to the High Court.

H. The Taxpayer appealed to the Court of Appeal.

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

Are You Ready for E-Invoicing Malaysia?

Are You Ready for E-Invoicing Malaysia?
View Full Size

E-Invoicing Malaysia - Are You Ready?

Introduction

An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.

An e-Invoice contains the same essential information as a traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.

Is e-invoicing mandatory in Malaysia?

Malaysia will introduce a countrywide e-invoicing mandate in June 2024.

The Malaysian government plans to introduce a Centralized Pre-Clearance CTC model on all transactions to increase efficiency and strengthen the tax administration. A gradual introduction of the obligation will commence in June 2024 and end in 2027.

Assess The Readiness of E-Invoice as per IRB Guide

To ensure that businesses are ready for the implementation of e-Invoice in the upcoming months, here are a few key steps that can be carried out to assess readiness and standardisation:

1. Allocate and equip personnel with the necessary capabilities to adopt and oversee the implementation of e-Invoice;

2. Determine the availability of data sources and structure, current IT capabilities to support system readiness and processes to comply with e-Invoice requirements and obligations; and

3. Review current processes in issuing transaction documents (i.e., invoice, debit note, credit note, refund note).

Our Take for Getting Ready E-Invoicing

Here's a point-form guide to help you :

  1. Understand Legal Requirements

    Research and comply with local e-invoicing regulations and tax laws.

  2. Choose and Set Up an E-Invoicing Platform:

    Select compliant software, integrate with existing systems, and migrate data.

  3. Design and Implement Security Measures:

    Customize invoice templates, secure data transmission, and control access.

  4. Train Staff and Communicate with Stakeholders:

    Educate employees on e-invoicing and notify customers/suppliers.

  5. Automate Processes and Test System:

    Set up automation for generation and tracking, and test for functionality.

  6. Monitor, Maintain, and Record Keeping:

    Regularly review and update the system, and keep electronic copies as required.

  7. Consult Professionals if Needed:

    Engage experts in compliance with local laws.

Previous Updates on E-Invoicing

Source

IRB E-Invoicing Guide version 1.0 https://www.hasil.gov.my/en/e-invoice/

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

Instalment Payment for Outstanding Tax Under SVDP 2.0

Instalment Payment for Outstanding Tax Under SVDP 2.0
View Full Size

Special Voluntary Disclosure Programme (SVDP) 2.0-Instalment Payment for Outstanding Tax

Latest Update

In their media statement from July 26, 2023, the IRB announced that taxpayers can arrange for instalment payments on outstanding income tax and real property gains tax for previous years without incurring an increase in tax.

During the Special Voluntary Disclosure Programme (SVDP 2.0) period, from June 6, 2023, to May 31, 2024, applications can be submitted in writing to the closest IRB branch handling the tax file or through the MyTax portal.

No supporting documents are needed as long as the amounts are settled within the SVDP 2.0 timeframe.

Travel Restriction Uplift

Furthermore, taxpayers adhering to the payment schedule set by the IRB will be granted a temporary lifting of travel restrictions under section 104 of the Income Tax Act 1967 (ITA 1967). This applies to those making consistent instalment payments for outstanding taxes.

Failure to follow the payment terms may lead to an increase in tax.

Source

The IRB's media statement can be found on their website at www.hasil.gov.my (Media Release).

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

E-Invoicing Malaysia - Coverage

E-Invoicing Malaysia - Coverage
View Full Size

E-Invoicing Malaysia - Coverage

Introduction

An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.

An e-Invoice contains the same essential information as a traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.

Is e-invoicing mandatory in Malaysia?

Malaysia will introduce a countrywide e-invoicing mandate in June 2024.

The Malaysian government plans to introduce a Centralized Pre-Clearance CTC model on all transactions to increase efficiency and strengthen the tax administration. A gradual introduction of the obligation will commence in June 2024 and end in 2027.

Transaction Types Subject to E-Invoicing

e-Invoice covers typical transaction types such as

  • Business to Business (B2B),

  • Business to Consumer (B2C), and

  • Business to Government (B2G).

In relation to certain B2C transactions where e-Invoices are not required by the end consumers to support the said transactions for tax purposes, suppliers will be allowed to issue a normal receipt or invoice in accordance with the current practices adopted by suppliers. After a certain period or timeframe, suppliers would be required to aggregate the normal receipts or invoices issued to end

For B2G transactions, the e-Invoice flow will be similar to B2B.

What is the applicability of e-invoicing?

e-Invoice applies to all taxpayers undertaking commercial activities in Malaysia.

This includes businesses engaged in the provision of goods and services and certain non-business transactions between individuals.

Guidance on e-Invoice requirements for certain non-business transactions between individual

taxpayers will be provided in due course.

Who Is Subject to E-Invoicing?

All individuals and legal entities are required to comply with e-Invoice requirement, including:

  • Association;

  • Body of persons;

  • Branch;

  • Business trust;

  • Co-operative societies;

  • Corporations;

  • Limited liability partnership;

  • Partnership;

  • Property trust fund;

  • Property trust;

  • Real estate investment trust;

  • Representative office and regional office;

  • Trust body; and

  • Unit trust.

Previous Updates on E-Invoicing

Source

IRB E-Invoicing Guide version 1.0 https://www.hasil.gov.my/en/e-invoice/

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

Timeline on E-Invoicing Malaysia

Timeline on E-Invoicing Malaysia
View Full Size

E-Invoicing Malaysia - The Timeline

Introduction

 

An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.

An e-Invoice contains the same essential information as a traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.

Is e-invoicing mandatory in Malaysia?

 

Malaysia will introduce a countrywide e-invoicing mandate in June 2024.

The Malaysian government plans to introduce a Centralized Pre-Clearance CTC model on all transactions to increase efficiency and strengthen the tax administration. A gradual introduction of the obligation will commence in June 2024 and end in 2027.

e-Invoice Implementation Timeline:

 

e-Invoice will be implemented in phases to ensure a smooth transition. The roll-out of e-Invoice has been planned with careful consideration, taking into account the turnover or revenue thresholds, providing businesses with sufficient time to adapt.

Below is the e-Invoice implementation timeline:

  • 1 June 2024 : Taxpayers with an annual turnover or revenue of more than RM100 million

  • 1 January 2025 : Taxpayers with an annual turnover or revenue of more than RM50 million and up to RM100 million

  • 1 January 2026 : Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM50 million

  • 1 January 2027 : All taxpayers and certain non-business transactions

Important notes :

  • Taxpayers may volunteer to implement e-Invoice at an earlier date, regardless of annual turnover or revenue.

  • The obligation to implement e-Invoice would be independent of the turnover or revenue amounts in the following FY.

  • Revenue is based on audited financial statements for the financial year ending 2022 on taxpayers with audited financial statements. Otherwise will rely on tax returns for the year assessment 2022.

Previous Update on E-Invoicing

 

Source

 

IRB E-Invoicing Guide version 1.0

https://www.hasil.gov.my/en/e-invoice/

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

 
 
 

 

E-Invoicing Malaysia - The workflow

E-Invoicing Malaysia - The workflow
View Full Size

E-Invoicing Malaysia - The workflow

Introduction

An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.

An e-Invoice contains the same essential information as a traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.

Is e-invoicing mandatory in Malaysia?

Malaysia will introduce a countrywide e-invoicing mandate from June 2024.

The Malaysian government plans to introduce a Centralized Pre-Clearance CTC model on all transactions to increase efficiency and strengthen the tax administration. A gradual introduction of the obligation will commence in June 2024 and end in 2027.

An Overview of Workflow of E-Invoicing

Today we will highlight the workflow of e-invoicing in general.

1. Issuance of e-Invoice

When a sale or transaction is made (including e-Invoice adjustments), the supplier creates an e-Invoice and shares it to IRBM via MyInvois Portal or API for validation.

2. Validation of e-Invoice

IRBM validation is performed in real-time, ensuring that the e-Invoice meets the necessary standards and criteria.

Once validated, the supplier will receive a Unique Identifier Number from IRBM via MyInvois Portal or API.

The Unique Identifier Number will allow traceability by IRBM and will reduce instances of tempering with the e-Invoice.

3. Notification of validated e-Invoice

IRBM will inform both the supplier and buyer once e-Invoice has been validated via MyInvois Portal or APIs.

4. Sharing of e-Invoice

Upon validation, the supplier is obliged to share the cleared e-Invoice (embedded with a QR code) with the buyer.

The QR code can be used to validate the existence and status of the e-Invoice via IRBM’s official portal.

5. Rejection or cancellation of e-Invoice

Upon issuance of e-Invoice, a stipulated period of time is given to:

• Buyer to request for rejection of the e-Invoice

• Supplier to perform cancellation of e-Invoice

Rejection requests or cancellations must be accompanied by justification.

6. MyInvois Portal

Supplier and buyer will able to obtain a summary of the e-Invoice transactions via MyInvois Portal.

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

SST Audit Malaysia

SST Audit Malaysia
View Full Size

Sales and Service Tax (“SST”) Audit

Background

The Royal Malaysian Customs Department (“RMCD”) conducts various types of audits to ensure compliance with sales tax regulations and promote transparency in business operations. These audits play a crucial role in maintaining the integrity of the tax system and safeguarding the interests of both the government and taxpayers.

In this article, we will explore the different types of audits conducted by the RMCD. Understanding these audit types will provide valuable insights into the processes involved and the objectives they aim to achieve.

Type of Custom Audit

1.     Desk audit

A desk audit is a review of the taxpayer's records and documents conducted at the RMCD's office, and normally concerned with more straightforward issues. During this type of audit, the RMCD officers examine the taxpayer's sales tax returns, supporting documents, and other relevant records to ensure compliance with the sales tax regulations.  

2.     Field audit

A field audit involves a physical visit by RMCD officers to the taxpayer's business premises or registered address. The purpose of a field audit is to conduct an on-site examination of the taxpayer's records, accounting systems, and operations. RMCD officers may inspect the inventory, sales records, invoices, purchase orders, contracts, and other relevant documents to verify the accuracy of sales tax reporting and identify any potential non-compliance issues.

3.     Compliance audit

This is a comprehensive audit conducted on all transactions. RMCD officers will examine all the business record, conduct interviews, and perform any necessary inspections to verify that the sales tax reporting is being complied with.

4.     Refund audit

In cases where taxpayers claim refunds for overpaid sales tax, the RMCD may conduct refund verification audits to verify the accuracy and eligibility of the refunds claimed.

5.     Transaction audit

This type of audit focuses on examining the existence of the transactions and are correctly reported. These transactions may be selected based on risk assessment, random sampling, or specific criteria set by RMCD.

6.     Advisory audit

An advisory audit encourages voluntary compliance with tax laws and regulations. This audit allows taxpayers to come forward and correct any errors, omissions, or non-compliance voluntarily.

7.     Cancellation audit

This is a comprehensive audit of all transactions conducted prior to any cancellation. It is performed for companies that intend to cancel their SST registration.

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

Company director gets RM2.4 million penalty for failure to file a tax return

Company director gets RM2.4 million penalty for failure to file a tax return
View Full Size

Company director gets RM2.4 million penalty for failure to file a tax return

Background

A recycling company director incurred a penalty of RM2,437,433 in addition to a fine of RM18,000 at the Magistrates Court here today, for her failure to file tax returns for the assessment years of 2021 and 2022 involving a taxable income of more than RM3.3 million.

She failed to file the returns for the taxable income of RM1,827,149 for the assessment year 2021 and RM1,558,176 for 2022, which meant she should have paid a tax of RM812,478 for both the years combined.

Law of Income Tax Act 1976

The taxpayer was charged under Section 77A(1) of the Income Tax Act 1967 which requires her to furnish a tax return in the prescribed form C for years of assessment 2021 to 2022 to the Director General of Inland Revenue.

Under section 112(1A) of the Income Tax Act 1967, the offense was punishable by a fine not exceeding RM20,000 or imprisonment up to six months or both, in addition to a special penalty of triple the tax payable, upon conviction.

Our Tips to Avoid Hefty Tax Penalty

  • First, get familiar with the tax rules that apply to you. The laws can change, so it's good to stay updated. You could use online resources, attend talks on tax, or hire a tax professional to help you.

  • Second, keep accurate records of your money - what you earn and what you spend. This is important when you're filling in your tax forms and it's helpful if tax officials need to check your details.

  • Third, always pay your taxes and submit your tax return on time. Late payments and late filing can lead to fines. You can set reminders or even automate payments and filing so you don't miss deadlines.

  • Fourth, find out about tax reductions and credits you can get. These can lower how much tax you need to pay.

  • Then, if taxes are too complicated for you, consider hiring a professional and responsible tax professional. They can guide you, help you save on your taxes, and avoid costly mistakes. Consider a tax lawyer when IRB brings you to court.

  • Lastly, take advantage of the Special Voluntary Disclosure Program 2.0 offered by the Ministry of Finance with a 0% penalty.

Source :

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

Stamp Duty Order 2023

Stamp Duty Order 2023
View Full Size

Stamp Duty Order 2023

Stamp duty relief for first-time home buyers

Malaysian Budget 2023 Speech on 24 February 2023 to encourage home ownership was to grant to first-time home owners full stamp duty exemption for the instrument of transfer and loan agreement for homes valued at RM500,000 and below until end-2025, and 75% stamp duty remission for the instrument of transfer and loan agreement for homes valued from RM500,001 to RM1,000,000 until 31 December 2023.1

Gazetted Order

The following subsidiary legislation in respect of Malaysian Home Ownership Initiative (iMiliki) under the Home Ownership Programme 2022/2023 (‘iMiliki Initiative 2022/2023’) were gazetted on 9 June 2023 to give effect to the foregoing initiatives:

1. Stamp Duty (Exemption) Order 2023 [P.U.(A) 176/2023] (‘E.O. 1/2023’);

2. Stamp Duty (Exemption) (No. 2) Order 2023 [P.U.(A) 177/2023] (‘E.O. 2/2023’);

3. Stamp Duty (Remission) Order 2023 [P.U.(A) 179/2023] (‘R.O. 1/2023’); and

4. Stamp Duty (Remission) (No. 2) Order 2023 [P.U.(A) 180/2023] (‘R.O. 2/2023’).

All of the above-referred subsidiary legislation (‘Orders’) are deemed to have come into operation on 1 June 2023.

The exemptions and remissions

  • E.O. 1/2023 exempts from stamp duty any loan agreement to finance the purchase of a residential property through the iMiliki Initiative 2022/2023, the value of which is not more than RM500,000, executed between an individual named in the sale and purchase agreement for the purchase of a residential property (‘SPA’) and any of the financial institutions listed in sub-paragraphs (1)(a) to (1)(i) of Paragraph 2 of E.O. 1/2023.

  • E.O. 2/2023 exempts from stamp duty any instrument of transfer for the purchase of a residential property through the iMiliki Initiative 2022/2023, the value of which is not more than RM500,000, executed by an individual.

  • R.O. 1/2023 remits 75% of the stamp duty chargeable on any loan agreement to finance the purchase of a residential property through the iMiliki Initiative 2022/2023, the value of which is more than RM500,000 but not more than RM1,000,000, executed between an individual named in the SPA and any of the financial institutions listed in sub-paragraphs (1)(a) to (1)(i) of Paragraph 2 of R.O. 1/2023.

  • R.O. 2/2023 remits 75% of the stamp duty chargeable on any instrument of transfer for the purchase of a residential property through the iMiliki Initiative 2022/2023, the value of which is more than RM500,000 but not more than RM1,000,000, executed by an individual.

Common conditions

The exemptions and remissions under the Orders shall only apply if the following conditions are satisfied:

  • the SPA is between an individual and a property developer;

  • the purchase price in the SPA is a price after a discount of at least 10% from the original price offered by the property developer as approved in the Advertising and Sales Permit under the Housing Development (Control and Licensing) Act 1966, the Housing Development (Control and Licensing) Enactment 1978 of Sabah or Housing Development (Control and Licensing) Ordinance 2013 of Sarawak (severally the ‘relevant housing development law’), except where the residential property is subject to controlled pricing;

  • the SPA is executed on or after 1 June 2022 but not later than 31 December 2023 and is duly stamped no later than 31 January 2024; and

  • the individual has never owned any residential property, including a residential property which is obtained by inheritance or gift, which is held either individually or jointly.

Supporting documents

The application for stamp duty relief under the Orders must be accompanied by a statutory declaration by:

  • the property developer confirming the grant of a discount of at least 10% from the original price offered by the property developer as approved in the Advertising and Sales Permit under the relevant housing development law, except for a residential property which is subject to controlled pricing; and

  • the individual named in the SPA confirming that he or she has never owned any residential property including a residential property which is obtained by way of inheritance or gift, which is held either individually or jointly.

Common terminology

For the purposes of the Orders:

‘individual’ means a purchaser who is a Malaysian citizen or co-purchasers who are Malaysian citizens;

‘residential property’ means a house, condominium unit, an apartment or a flat purchased or obtained solely to be used as a dwelling house and includes a service apartment and small office home office (SOHO) for which the property developer has obtained an approval for a Developer’s Licence and Advertising and Sales Permit under the relevant housing development law,

and for the purposes of E.O. 2/2023 and R.O. 2/2023, the value of the residential property shall be based on the market value.

Source :

Skrine - Stamp duty relief for first-time home buyers gazetted

https://www.skrine.com/insights/alerts/june-2023/stamp-duty-relief-for-first-time-home-buyers-gazet

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

Form E-107D : 2% Tax Deduction For Commission to Agents, Dealers or Distributors

Form E-107D : 2% Tax Deduction For Commission to Agents, Dealers or Distributors
View Full Size

(Tax Update) Form E-107D : 2% Tax Deduction For Commission to Agents, Dealers or Distributors

Tax Latest Development

The Inland Revenue Board of Malaysia (HASiL) recently made an announcement on their website, dated 27th June 2023, to inform the public about a new development.

IRB has introduced a new form, called Form e-107D, which is now available for online submission. This form is specifically designed for companies to declare and claim a 2% tax deduction on commission payments made to agents, distributors, or dealers, as outlined in Section 107D of the Income Tax Act 1967.

Key Salient Points

According to HASiL Media Release, the Form e-107D includes functions such as:

a. Online filling in the information of the payer and payee of the commission payments for the

purpose of S.107D;

b. Downloading the CP107D Appendix;

c. Uploading the CP107D Appendix; and

d. Bill Number generation for the purpose of S.107D tax payment via ByrHASiL after the Form CP107D has been submitted.

How to Form E-107D

The Form e-107D can be accessed through the MyTax application at https://mytax.hasil.gov.my/. The MyTax user needs to log in and select the role of Director or Director’s representative to use the Form e-107D.

Taxpayers can also refer to the User Manual of the Form e-107D on HASiL’s website as follows:

HASiL website > MyTax > User Manual > User Manual CP107D

Penalty

• 10% penalty if the payer fails to remit 2% to IRB within 30 days

• Commission is not allowed for tax deduction

Further Reference From on 2% Tax Deduction For Commission

Read our past post on withholding tax on commission to agents :

1. (Latest update) Withholding Tax on Payments to Agents dated on 21.04.2022

https://bit.ly/3uFIQNj

2. Withholding Tax on Payments to Agents dated on 17.03.2022

https://bit.ly/3L3JzOB

3. 2% withholding tax on commission dated on 30.12.2021

https://bit.ly/3hRrk20

4. 预算案 2022 dated 19.11.2021

https://bit.ly/3tKU7dM

5. Budget 2022 - SME edition dated on 18.11.2021

https://bit.ly/3IWhAiR

Source :

HASiL Media Release - E-107D https://bit.ly/3PBZrNs

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

(Update) New PCB Rate

(Update) New PCB Rate
View Full Size

(Update) New PCB Rate

Tax Latest Development

Adoption of new tax rates to calculate Monthly Tax Deduction effective from 1 June 2023

The Inland Revenue Board of Malaysia (HASiL) announced the adoption of new tax rates to calculate Monthly Tax Deduction (MTD) effective from 1 June 2023 on its website together with the issuance of the following documents:

✅Amendment To: Specification for MTD Calculations Using Computerised Calculation for 2023 (updated 1 June 2023).

✅Questions for MTD Calculation Using Computerised Calculation Method 2023.

✅ Form PCB/TP1 (1/2023) – Individual Deduction and Rebate Claim Form for the Purpose of MTD and

Explanatory Notes on Form TP1

✅ Form PCB/TP3 (1/2023) – Information Form Related to Employment with Previous Employers in the Current Year for the Purpose of MTD and Explanatory Notes on Form TP3

Budget 2023

The announcement is in line with Section 16(a) of the Finance Act 2023 (Act 845) which was gazetted on 31 May 2023.

Please read our past social media posting dated 7 March 2023 on the ''Revisited Budget 2023 for Individual''

https://www.ktp.com.my/blog/tax-budget-2023-individual/07mar2023

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

(Update) Tax Payment to IRBM

(Update) Tax Payment to IRBM
View Full Size

(Update) Tax Payment to IRBM

The Inland Revenue Board Malaysia (IRBM) stated that the cheque and money/postal orders will no longer be accepted as payment for direct tax as IRBM’s statement dated 12 June 2023.

Key Salients Points of The Media Statement

Revenue Management Centres (Pusat Terimaan Bayaran) wef 1 August 2023

  • CIMB Bank wef 1 August 2023

  • Maybank/Public Bank wef 1 June 2023

  • POS Malaysia wef 1 August 2023

  • Stamp duty counters wef 1 July 2023

Exemptions

  • Advance payment and instalments for audit, investigation, and civil cases submitted to IRB before 1 August 2023.

  • Payment of 2% deduction against the payment of commission to an agent, dealer or distributor under S107D of the Income Tax Act 1967.

Other Tax Payments Issues

  • Revenue Management Centre accepts payment in cash or bank draft on the following :

  • 3% retention sum by acquirer under section 21B of Real Property Gain Tax Act 1976

  • Income tax paid by foreign artists

  • Withholding tax

  • Compound

  • Payment for employees’ Monthly Tax Deductions (MTD) via the IRB’s MTD system can be made via cash, bank draft or online banking or transfer (FPX, TT IBG)

  • Stamp duty payment at stamp duty counters can only accept bank drafts

  • Direct tax payment using the bill number or TIN can be made via IRBM’s MyTax Portal at https://mytax.hasil.gov.my

Sources

IRB media statement 12 June 2023

https://www.hasil.gov.my/media/wm0bqyhj/20230612-kenyataan-media-hasil-pemberhentian-penerimaan-cek-dan-money-order-postal-order-sebagai-instrumen-terimaan-bayaran-di-hasil.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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

(update) Special Voluntary Disclosure Programme 2.0 - Postponed

(update) Special Voluntary Disclosure Programme 2.0 - Postponed
View Full Size

(update) Special Voluntary Disclosure Programme 2.0 - Postponed

Introduction

With SVDP2.0 expected to commence from 1 June 2023, IRB issued the detailed guidelines and mechanism on 31/5/2023.

But ...

IRB has on their website, and RMC Department on their official social media site, announced that the SVDP 2.0 is now postponed to a date which is to be determined.

My thought on SVDP 2.0 to taxpayers:

1. Understand the Program Guidelines

Thoroughly familiarize yourself with the specific guidelines and requirements of the SVDP you are considering. Each program may have different eligibility criteria, disclosure formats, deadlines, and potential benefits.

Being well-informed will help you make informed decisions and avoid any misunderstandings.

2. Assess Potential Risks and Benefits:

Before proceeding with a voluntary disclosure, carefully evaluate the potential risks and benefits involved. Understand the extent of the relief or benefits offered by the program and weigh them against the risks of potential penalties, interest, or other consequences if the disclosure is not accepted.

Professional advice can help you assess this effectively.

3. Gather Accurate and Complete Information

When preparing your voluntary disclosure, ensure that you provide accurate and comprehensive information. Incomplete or misleading disclosures may be rejected, leading to further complications.

It is crucial to gather all relevant documentation and financial records to support your disclosure.

4. Seek Professional Advice

Engaging a qualified tax professional, such as a tax consultant or lawyer, is highly recommended when participating in an SVDP. They can provide expert guidance, help you understand the implications of the program, assist in preparing the disclosure, and advocate on your behalf during discussions with tax authorities.

5. Comply with Program Deadlines

SVDPs have specific deadlines for making disclosures. Adhere to these deadlines to ensure your disclosure is considered and processed in a timely manner.

Any amount of tax payable must be paid in full by the prescribed due date upon any disclosure. In other words, taxpayers should avoid making declarations at the very last minute.

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 (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, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting 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

 

 

How to make tax payment online

How to make tax payment online
View Full Size

How to make tax payment online

Tax Payment Via ByrHASiL Through FPX Services

The e-payment portal at IRBM website enables taxpayers to pay income tax through FPX gateway. Users need to register for internet banking services with any commercial banks listed as FPX associates.

Payment can be made online at IRBM website www.hasil.gov.my by clicking ‘Perkhidmatan ezHasil’ > ‘ByrHASiL’

Step by step

  1. Go to IRB website https://byrhasil.hasil.gov.my

  2. Select the payment via FPX or FPX using Bill Number

  3. Key in the Bill Number and insert the code

  4. Click the Proceed icon

  5. Ensure the information is correct, select the icon for FPX

  6. The system will display the email address associated with your account. You can update the email address if you want to make any changes.

  7. If you require a notification to be sent to a second email address, you can add it by entering the email address.

  8. Choose the Bank Account Type and select your bank from the list

  9. Click Proceed icon to continue

  10. Once you have selected your bank, a screen will appear prompting you to enter your user ID and password, then log into your bank account.

  11. Upon successful payment and submission, you receive a confirmation email from IRB.

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 (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.

This message was brought to you by KTP

 

How to file personal income tax?

How to file personal income tax?
View Full Size

How to file persona income tax?

Taxpayers can start submitting their income tax return forms through the e-Filing system starting from March 1 of every year, unless otherwise announced by LHDN.

This method of e-filing is becoming popular among taxpayers for its simplicity and user-friendliness.

If this is your first time filing your tax through e-Filing, don’t worry, we’ve got your back with this handy guide on e-Filing.

Step by step

  1. Log into mytax.hasil.org.my

  2. Choose “Identification Card No”

  3. Complete it and click submit

  4. Choose e-CP55PD on the first timer if the digital certificate is not displayed.

  5. Fill in your email address, upload IC, and click submit

  6. You will receive IRB notification within five (5) working days.

  7. Follow step 2 and 3

  8. Mytax dashboard will be displayed

  9. Click ezHasil service and select e-filing

  10. Choose the Form

  11. Select Tahau Taksiran

  12. Complete Part 1, 2, 3, 4 and 5

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 (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.

This message was brought to you by KTP

 

12345678910

 

THK Group of Companies THK Management Advisory Sdn Bhd 200401000220 (638723­X) THK Secretarial PLT 202304003367 (LLP0037327-LGN)

Wisma THK, No. 41, 41-01, 41-02, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru, Johor, Malaysia.
+6012-771 7903 (Secretary Department)
+6012-771 7803 (Account Department)
+607-361 3443

QUICK LINK

 
© 2020 - 2024 THK Management Advisory Sdn Bhd      200401000220 (638723-X) | Privacy Policy
Visitors: 730819
Powered by NEWPAGES
Switch to Mobile Version
Subscribe Newsletter