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What are the new TP rules 2023?
(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
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Effective from the year of assessment (YA) 2023 onwards.
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Previous 2012 Transfer Pricing Rules are revoked. TP Rules 2012 remains applicable for prior YAs?
Contemporaneous TP Documentation
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Must be prepared prior to tax return filing due date.
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The date of preparation must be clearly stated.
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New schedules (Schedules 1, 2, and 3) are added detailing specific documentation requirements.
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Taxpayers must indicate when the TP documentation is finished.
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Documentation must contain foundation documents and supporting materials.
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Documentation must be submitted to IRB within 14 days upon request.
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The Director General (DG) of the IRB can issue guidelines to facilitate the new rules.
Arm’s Length Range
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Defined as figures between 37.5 percentile to 62.5 percentile.
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If a transaction price is within this range, it's regarded as the arm's length price.
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The DG can adjust to the median or above due to comparability defects.
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If outside the range, the median becomes the arm's length price.
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Up to 5% surcharge can be applied on TP adjustments by DG.
Comparability Analysis
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Precise delineation of controlled transactions emphasized.
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Use of prior year data outlined with specific purposes.
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The DG can change the selected method if deemed more appropriate.
Definitions and Changes
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Definitions added or amended: ''Multinational Enterprise Group”, “Profit Level Indicator”, “Intangible Property”, “Marketing Intangibles”.
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Re-characterization of transactions and offsetting adjustments provisions from 2012 rules removed.
Practical Considerations for Taxpayers
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The new rules provide clarity but have challenges.
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DG can still adjust to the median, even if within arm's length range.
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Definition gaps on what constitutes a comparability defect.
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Additional documentation is required, especially for Multinational Enterprise Groups.
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The burden on taxpayers to maintain and prove documentation.
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The use of non-Malaysian benchmarking studies is not clarified.
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Removal of offsetting adjustments provision from 2012 rules; now discretionary for DG.
Next Steps for Taxpayers
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Begin preparation to meet Schedule 1 requirements.
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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
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Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
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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
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Website www.ktp.com.my
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Instagram https://bit.ly/3jZuZuI
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Linkedin https://bit.ly/3sapf4l
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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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Website www.thks.com.my
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Facebook https://bit.ly/3nQ98rs
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E-Invoicing Malaysia - Transition Challenges and Strategies
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
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Are you ready for e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-are-you-ready/10aug23
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The coverage of e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-coverage/3aug23
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The timeline of e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-timeline/2aug23
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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
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Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
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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
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Website www.ktp.com.my
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Instagram https://bit.ly/3jZuZuI
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Linkedin https://bit.ly/3sapf4l
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Telegram http://bit.ly/3ptmlpn
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
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Website www.thks.com.my
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Facebook https://bit.ly/3nQ98rs
KTP Lifestyle
An internal community for our colleagues on work and leisure.
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Tiktok http://bit.ly/3u9LR6Q
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Youtube http://bit.ly/3ppmjyE
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Facebook http://bit.ly/3ateoMz
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Instagram https://bit.ly/3jZpKLo
KTP Career
An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.
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Instagram https://bit.ly/3u2PxHg
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Facebook http://bit.ly/3rPxz9o
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Double Tax Deduction on Hiring Interns
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
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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
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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:
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Provide a minimum internship period of ten (10) weeks
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Pay a minimum monthly allowance of RM600 for master’s degree, bachelor’s degree and Professional Certificate or equivalent
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Pay a minimum monthly allowance of RM500 for diploma/Malaysian Skills Certificate (SKM) Level 1 to Level 5 or equivalent
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Provide an internship framework that includes practical experience and emphasizes on the development of specific knowledge or skills for students and approved by TalentCorp
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Registered with the Companies Commission of Malaysia (SSM)
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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: -
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Structured internship Programme TalentCorp - No Gazette Order dated 17.02.2023
https://rb.gy/xp29f
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Structured internship Programme TalentCorp dated 18.10.2022
https://rb.gy/fpfux
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A Government Program to Help You Get Interns with Double Tax Deduction dated on 5.10.2020
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https://shorturl.at/mox03
Visit Us
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Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
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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
-
Website www.ktp.com.my
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Instagram https://bit.ly/3jZuZuI
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Linkedin https://bit.ly/3sapf4l
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Telegram http://bit.ly/3ptmlpn
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
-
Website www.thks.com.my
-
Facebook https://bit.ly/3nQ98rs
KTP Lifestyle
An internal community for our colleagues on work and leisure.
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Tiktok http://bit.ly/3u9LR6Q
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Youtube http://bit.ly/3ppmjyE
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Facebook http://bit.ly/3ateoMz
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Instagram https://bit.ly/3jZpKLo
KTP Career
An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.
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Instagram https://bit.ly/3u2PxHg
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Facebook http://bit.ly/3rPxz9o
Is a bank guarantee fee tax deductible?
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
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Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
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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
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Website www.ktp.com.my
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Instagram https://bit.ly/3jZuZuI
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Linkedin https://bit.ly/3sapf4l
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Telegram http://bit.ly/3ptmlpn
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
-
Website www.thks.com.my
-
Facebook https://bit.ly/3nQ98rs
KTP Lifestyle
An internal community for our colleagues on work and leisure.
-
Tiktok http://bit.ly/3u9LR6Q
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Youtube http://bit.ly/3ppmjyE
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Facebook http://bit.ly/3ateoMz
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Instagram https://bit.ly/3jZpKLo
KTP Career
An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.
-
Instagram https://bit.ly/3u2PxHg
-
Facebook http://bit.ly/3rPxz9o
#Ktp #Thks
Are You Ready for E-Invoicing Malaysia?
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 :
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Understand Legal Requirements
Research and comply with local e-invoicing regulations and tax laws.
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Choose and Set Up an E-Invoicing Platform:
Select compliant software, integrate with existing systems, and migrate data.
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Design and Implement Security Measures:
Customize invoice templates, secure data transmission, and control access.
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Train Staff and Communicate with Stakeholders:
Educate employees on e-invoicing and notify customers/suppliers.
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Automate Processes and Test System:
Set up automation for generation and tracking, and test for functionality.
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Monitor, Maintain, and Record Keeping:
Regularly review and update the system, and keep electronic copies as required.
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Consult Professionals if Needed:
Engage experts in compliance with local laws.
Previous Updates on E-Invoicing
-
The workflow of e-Invoicing https://www.ktp.com.my/.../e-invoicing-malaysia.../31jul23
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The timeline of e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-timeline/2aug23
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The coverage of e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-coverage/3aug23
Source
IRB E-Invoicing Guide version 1.0 https://www.hasil.gov.my/en/e-invoice/
Visit Us
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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
-
Website www.ktp.com.my
-
Instagram https://bit.ly/3jZuZuI
-
Linkedin https://bit.ly/3sapf4l
-
Telegram http://bit.ly/3ptmlpn
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
-
Website www.thks.com.my
-
Facebook https://bit.ly/3nQ98rs
KTP Lifestyle
An internal community for our colleagues on work and leisure.
-
Tiktok http://bit.ly/3u9LR6Q
-
Youtube http://bit.ly/3ppmjyE
-
Facebook http://bit.ly/3ateoMz
-
Instagram https://bit.ly/3jZpKLo
KTP Career
An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.
-
Instagram https://bit.ly/3u2PxHg
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Facebook http://bit.ly/3rPxz9o
#Ktp #Thks
Instalment Payment for Outstanding Tax Under SVDP 2.0
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
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Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
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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
-
Website www.ktp.com.my
-
Instagram https://bit.ly/3jZuZuI
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Linkedin https://bit.ly/3sapf4l
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Telegram http://bit.ly/3ptmlpn
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
-
Website www.thks.com.my
-
Facebook https://bit.ly/3nQ98rs
KTP Lifestyle
An internal community for our colleagues on work and leisure.
-
Tiktok http://bit.ly/3u9LR6Q
-
Youtube http://bit.ly/3ppmjyE
-
Facebook http://bit.ly/3ateoMz
-
Instagram https://bit.ly/3jZpKLo
KTP Career
An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.
-
Instagram https://bit.ly/3u2PxHg
-
Facebook http://bit.ly/3rPxz9o
#Ktp #Thks
E-Invoicing Malaysia - Coverage
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
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Business to Business (B2B),
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Business to Consumer (B2C), and
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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:
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Association;
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Body of persons;
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Branch;
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Business trust;
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Co-operative societies;
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Corporations;
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Limited liability partnership;
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Partnership;
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Property trust fund;
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Property trust;
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Real estate investment trust;
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Representative office and regional office;
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Trust body; and
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Unit trust.
Previous Updates on E-Invoicing
-
The workflow of e-Invoicing https://www.ktp.com.my/.../e-invoicing-malaysia.../31jul23
-
The timeline of e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-timeline/2aug23
Source
IRB E-Invoicing Guide version 1.0 https://www.hasil.gov.my/en/e-invoice/
Visit Us
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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
-
Website www.ktp.com.my
-
Instagram https://bit.ly/3jZuZuI
-
Linkedin https://bit.ly/3sapf4l
-
Telegram http://bit.ly/3ptmlpn
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
-
Website www.thks.com.my
-
Facebook https://bit.ly/3nQ98rs
KTP Lifestyle
An internal community for our colleagues on work and leisure.
-
Tiktok http://bit.ly/3u9LR6Q
-
Youtube http://bit.ly/3ppmjyE
-
Facebook http://bit.ly/3ateoMz
-
Instagram https://bit.ly/3jZpKLo
KTP Career
An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.
-
Instagram https://bit.ly/3u2PxHg
-
Facebook http://bit.ly/3rPxz9o
#Ktp #Thks
Timeline on E-Invoicing Malaysia
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:
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1 June 2024 : Taxpayers with an annual turnover or revenue of more than RM100 million
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1 January 2025 : Taxpayers with an annual turnover or revenue of more than RM50 million and up to RM100 million
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1 January 2026 : Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM50 million
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1 January 2027 : All taxpayers and certain non-business transactions
Important notes :
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Taxpayers may volunteer to implement e-Invoice at an earlier date, regardless of annual turnover or revenue.
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The obligation to implement e-Invoice would be independent of the turnover or revenue amounts in the following FY.
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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
The workflow of e-Invoicing
Source
IRB E-Invoicing Guide version 1.0
https://www.hasil.gov.my/en/e-invoice/
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E-Invoicing Malaysia - The workflow
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.
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An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
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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
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Personal Data Protection Act 2023
Personal Data Protection Act 2023 - Proposed Amendments
What is it Personal Data Protection Act (PDPA)
The PDPA governs data usage and its security in Malaysia. It was tabled in 2010 and gazetted the same year, but only implemented in 2013.
The act is enforced by the Personal Data Protection Department. One of its main functions is to prevent data misuse in commercial transactions.
What it covers
Under the PDPA, data such as your full name, MyKad number, passport number and your email address are considered to be personal and sensitive information.
Other forms of data that fall under this category include photographs, images captured from CCTVs, religious and political beliefs, as well as personal documents like tax records.
Under the Act, a person is entitled to the following rights after sharing their data with an organisation:
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The right to know if their data is being processed.
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The right to access their personal data from the organisation’s database
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The right to amend the data provided
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The right to withdraw consent given to process one’s data
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The right to stop any data processing activities that could cause damage or distress
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The right to stop data processing activities for direct marketing
Proposed Amendments to the PDPA
The draft amendment to the PDPA to curb personal data breaches is expected to be presented in Parliament before the end of this year. It is rumored that it will be enacted by the end of October 2023.
Communications and Digital Minister Fahmi Fadzil said the Personal Data Protection Department (JPDP) was looking at several improvements to the amendments prepared by the previous government before they were submitted to the Attorney-General's Chambers.
The proposed amendments are summarised as follows:
1. Mandatory appointment of a Data Protection Officer
All data users will each be required to appoint a data protection officer.
2. Data portability
Transfers of personal data between data users (upon request from data subjects) will be allowed (if the technical system permits).
3. Mandatory data breach notification
All data users will be required to report data breaches to the Malaysian Personal Data Protection Department (PDPD) within 72 hours.
4. Enhanced obligations for data processors
Data processors will be required to comply with the security principle under the PDPA.
5. Cross-border data transfer requirements
The power of the Minister to issue a whitelist will be replaced with a blacklist. Transfers of personal data to blacklisted countries will be prohibited.
Impacts On The Proposed Amendments in PDPA
Increase in penalties for misuse of data and non-compliance with PDPA in general.
Designate the Malaysian Personal Data Protection Department as a statutory commission with enforcement power.
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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
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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
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Accounting Concepts
Accounting Concepts: Consistency, Going Concern & Prudence
What are Accounting Concepts?
It is the basic rules, ideas, and conditions by which companies record their financial transactions and organize their bookkeeping.
What is the objective of Accounting Concepts?
To achieve uniformity and consistency in preparing and recording financial reports.
What is Consistency Concept?
The same accounting method should be used consistently once it has been adopted by the company, unless a change is required by law or other valid reasons to do otherwise.
It will prevent manipulation in accounts and make the financial numbers comparable across different periods or years.
What is Matching Concept?
The matching concept is linked to the accruals concept.
It requires revenue earned and expenses incurred to be matched and recorded during the same accounting period.
Example 1:
Deposit of RM 500 received from the customer on 27 December 2022 for a dinner reservation on 10 January 2023.
No expenses have been incurred yet if the RM 500 deposit is recorded as revenue on 27 December 2022.
Hence, the RM 500 deposit should be booked as “Deposit from Customer (Balance Sheet)” in December 2022 and adjusted as “Sales revenue (Income Statement)” in January 2023 to match the expenses incurred on 10 January 2023.
Example 2:
ABC Sdn Bhd’s financial year ended on 31 December 2022. It only issued invoices to its customers in January 2023 for work carried out in December 2022.
An accounting adjustment needs to be made for the unbilled revenue as “Accrued revenue” on 31 December 2022 to match the expenses incurred during the financial year.
What is Going Concern Concept?
Also known as the continuity assumption, this assumption assumes that a business will continue its operations for the foreseeable future.
It implies that financial statements are prepared with the expectation that the business will continue to exist and not be liquidated.
Examples of situations that may cast doubt on the going concern assumption include:
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Continuous losses: If a business consistently incurs significant losses, it may raise concerns about its ability to continue operating in the future.
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Legal or regulatory issues: Legal disputes, loss of key licenses or permits, or significant changes in regulations can impact a business's ability to continue its operations.
What is Prudence Concept?
This is an accounting concept that suggests caution and a conservative approach in preparing financial statements.
The prudence concept suggests that losses such as bad debts, inventory obsolescence, or decline in the value of investments, should be accounted for even if they have not yet occurred.
However, gains should only be recognized when they are realized.
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ACCA Malaysia Virtual Careers Fair 2023
SST Audit Malaysia
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.
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An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
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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
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Website www.thks.com.my
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Internship 2023
We are hiring
If you are looking for an exciting work experience?
We are hiring interns! 🎉🎉🎉 Yes, we will pay you!
We believe that your hard work is worth it, and we hope to learn as much from you as you do from us.
You may not have a lot of work experience, but we know that you are ready to learn and grow.
We appreciate your efforts and believe you deserve to be rewarded.
If you like what you're reading, if you want to help people who need it most, if you're curious about what working at KTP is like, and if you're looking for an internship, we should talk more.
We can't wait to welcome you to our team! Drop us an email careers@ktp.com.my or call us 607-3613443
Let's start this exciting journey together!
PS :
Watch our past intern Kllow final video in our KTP YouTube
https://youtu.be/QmZ6DEzzjMU
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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
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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
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Website www.thks.com.my
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Disqualification of Director Malaysia
Disqualification of Director Malaysia
Background
In order to become a director of the company, he must write his consent in writing to become a director and make a declaration that he is not disqualified from being appointed in compliance with Section 201 of the Companies Act 2016.
How to determine if a person is disqualified to become a director?
There are a few ways to determine whether a person is disqualified to become a director of the company. One of the criteria for disqualification of a director includes a committed offence.
What is offence included under this act?
• Bribery;
• Fraud; and
• Dishonesty
Why is a person who committed an offence unable to become a director of the company?
One of the duties of the director require to manage the asset on behalf of the company. If he becomes an undischarged bankrupt person he is not being trusted by the interested party to manage the company.
What will happen if a person failure to comply?
A person who failed to comply under this Section are convicted and be liable :
• to imprisonment for a term not exceeding 5 years; or
• to a fine not exceeding RM1,000,000.00; or
• to both
A person who committed an offence still be able to become a director?
Yes, a person may be re-appointed or hold office to become a director of the company. However, he must apply for leave from the Official Receiver or from the Court.
What is the meaning of the leave?
Leave is permission is granted by the Court
How to apply for leave from the court?
A person intending to apply for leave may follow the below informations :
1. Notice
• Send a notice of intention to apply for leave has been served on the Official Receiver;
• Send a notice of intention to apply for leave has been served on the Registrar not less than 14 days;
2. Heard on application - The official receiver is heard on the application.
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An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
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A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients
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Share Transfer on Death of Shareholder
Share Transfer on Death of Shareholder
Background
When a shareholder dies the right to his interest in the shares will pass to whoever inherits them under his will or intestacy. The deceased shareholder's rights will be administered by his or her executors (if there is a will) or administrators of the estate if the shareholder has died intestate.
Two deciding legal considerations
The beneficiary can make a written request to the company to appoint someone registered as the holder of the inherited shares. The very same appointed person can also execute an instrument or transfer in respect of it. However, this can be a complicated and time-consuming process
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Does the deceased shareholder have a will?
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Is there any buy-sell agreement?
The Will
The appointed executor will carry out the following: -
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Obtain the grant of probate (GOP) from the high court.
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Notify the Company Secretary regarding the share to be transmitted according to Section 109 of the Companies Act 2016.
What If There Is No Will?
Family members need to obtain a Letter of Administration (LA) by engaging a lawyer for the application process.
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An administrator will be appointed
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Once the administrator received the court order,
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Notify the Company Secretary regarding the shares to be transmitted according to Section 109 of the Companies Act 2016.
Buy-Sell Agreement
It’s to outline the terms and conditions under which the shares of a deceased shareholder will be purchased by the surviving shareholders or the company itself.
The agreement includes provisions such as the purchase price, valuation methods, funding mechanisms, and the process for executing the buyout .
The agreement will be presented to the Company’s Secretary to proceed with the transfer of shares under Section 105 of the Companies Act 2016.
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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
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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
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Website www.thks.com.my
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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
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
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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.
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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.
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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.
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Fourth, find out about tax reductions and credits you can get. These can lower how much tax you need to pay.
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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.
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Lastly, take advantage of the Special Voluntary Disclosure Program 2.0 offered by the Ministry of Finance with a 0% penalty.
Source :
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The Sundaily on 5/7/2023
https://www.thesundaily.my/local/company-director-gets-rm24m-penalty-for-failure-to-file-tax-returns
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IRB Special Voluntary Disclosure Program 2.0
FAQ: https://www.hasil.gov.my/media/ijkbffcl/faq-svdp-20.pdf
Flowchart: https://www.hasil.gov.my/media/tkup4vap/flowchart-svdp-20-application.pdf
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An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
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Depression in Workplace
Depression in Workplace
#depression in the workplace often presents subtly and quietly.
Here are those signs of depression in the workplace :
1. Constant fatigue.
2. Lack of focus.
3. Decreased productivity.
4. Becoming withdrawn or irritable.
5. Less interest in tasks once enjoyed.
6. Persistent lateness.
7. Frequent sick days or extended breaks.
8. Inability to make decisions.
9. Excessive worry about minor issues.
10. Changes in appetite or weight.
11. Discussing feelings of worthlessness or hopelessness.
Final Words
While each symptom alone might not suggest #depression, a combination of these could be an indication that you are are battling this mental health condition.
If you feel not comfortable, discuss your situation with your manager, HR or me. #depressionsupport
RIP Coco Lee.
PS : Authored by Mr Koh Teck Peng, the principal of KTP Group, in his personal LinkedIn https://bit.ly/44dU1fN
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Stamp Duty Order 2023
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
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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.
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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.
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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.
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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:
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the SPA is between an individual and a property developer;
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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;
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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
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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:
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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
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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
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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
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Website www.ktp.com.my
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Form E-107D : 2% Tax Deduction For Commission to Agents, Dealers or Distributors
(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
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KTP (Audit, Tax, Advisory)
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