With over 50,000 private limited companies incorporated in Malaysia in 2023, the country remains a hot spot for new businesses. Whether you're a local or international investor, setting up a company in Malaysia is an attractive option. To make the process smoother, here are six essential steps to help you get started on your entrepreneurial journey. 1. Company Name Choosing your company name is the first step. The name must be unique, not identical to an existing company, and must meet the standards set by the Companies Commission of Malaysia (SSM). Your company secretary will handle the name submission to ensure it meets SSM's requirements and is available for registration. 2. Business Activity When incorporating your business, you will need to select up to three categories from the MSIC (Malaysia Standard Industrial Classification) code. These categories define your business's nature and scope, and getting them right is key to starting off on the right foot. 3. Share Capital While the minimum paid-up capital in Malaysia can be as low as RM1, it is recommended to have more than RM1,000 to facilitate the opening of a bank account. A higher capital not only reflects better financial standing but also helps in building credibility with banks and clients. 4. Registered Office Address Every company must have a registered office address for receiving official correspondence. This is usually provided by your corporate secretary, ensuring all legal documents and notifications are properly handled. 5. Director and Shareholder Requirements Your company needs at least one director and one shareholder, both of whom must be over 18 years old. If your company only has a foreign director, they must reside in Malaysia to meet local regulations. 6. Opening a Company Bank Account Opening a traditional bank account can be challenging for newly incorporated companies without solid business documentation. Many opt for electronic banking solutions like Payoneer at the start, until they can provide sufficient business evidence, such as contracts and proof of revenue growth. Most banks will also require a valid business address as part of their compliance process. By following these steps, you’re on your way to incorporating your private limited company in Malaysia. To learn more about how we can assist you with this process, visit our blog at KTP or THKs. We specialize in helping investors navigate company incorporation, and our team is ready to guide you through every step.

(Sec) How to Incorporate a Private Limited Company in Malaysia: A Step-by-Step Guide for Investors With over 50,000 private limited companies incorporated in Malaysia in 2023, the country remains a hot spot for new businesses. Whether you're a local or international investor, setting up a company in Malaysia is an attractive option. To make the process smoother, here are six essential steps to help you get started on your entrepreneurial journey. 1. Company Name Choosing your company name is the first step. The name must be unique, not identical to an existing company, and must meet the standards set by the Companies Commission of Malaysia (SSM). Your company secretary will handle the name submission to ensure it meets SSM's requirements and is available for registration. 2. Business Activity When incorporating your business, you will need to select up to three categories from the MSIC (Malaysia Standard Industrial Classification) code. These categories define your business's nature and scope, and getting them right is key to starting off on the right foot. 3. Share Capital While the minimum paid-up capital in Malaysia can be as low as RM1, it is recommended to have more than RM1,000 to facilitate the opening of a bank account. A higher capital not only reflects better financial standing but also helps in building credibility with banks and clients. 4. Registered Office Address Every company must have a registered office address for receiving official correspondence. This is usually provided by your corporate secretary, ensuring all legal documents and notifications are properly handled. 5. Director and Shareholder Requirements Your company needs at least one director and one shareholder, both of whom must be over 18 years old. If your company only has a foreign director, they must reside in Malaysia to meet local regulations. 6. Opening a Company Bank Account Opening a traditional bank account can be challenging for newly incorporated companies without solid business documentation. Many opt for electronic banking solutions like Payoneer at the start, until they can provide sufficient business evidence, such as contracts and proof of revenue growth. Most banks will also require a valid business address as part of their compliance process. By following these steps, you’re on your way to incorporating your private limited company in Malaysia. To learn more about how we can assist you with this process, visit our blog at KTP or THKs. We specialize in helping investors navigate company incorporation, and our team is ready to guide you through every step. 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 Website www.ktp.com.my Instagram https://bit.ly/3Rko5kN Linkedin https://bit.ly/3sapf4l 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. 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 vacancies in Johor Bahru for interns, graduates & experienced candidates. Instagram https://bit.ly/3u2PxHg Facebook http://bit.ly/3rPxz9o #Thk #KTP read more

公司成立后许可证常见问题 | THK (www.thks.com.my) 在马来西亚创业？别担心，THK 为您解答公司成立后关于许可证的常见问题。 无论您是刚刚成立公司，还是准备扩展业务，遵守法律法规是非常重要的。 我们将讨论以下关键问题： 我成立公司后，第一项必须完成的强制性注册是什么？ 我们公司刚招聘了一名新员工。是否需要注册与员工相关的组织？ 计划在实体办公室经营？要合法设立业务场所需要什么许可证？ 想要开办制造业？需要申请哪种特定许可证？ 如果从事贸易行业，您的业务需要什么许可证？ 其他行业需要哪些注册？ 保持信息更新，确保合法合规。有关适合您业务的许可证或注册的更多指导，请联系 THK (www.thks.com.my) – 您在柔佛州中小企业合规方面的可靠伙伴。 不要错过专家建议。订阅我们的频道，获取 THK 的最新动态！ 点击观看我们的视频：https://youtu.be/-X5_lUPHwSE read more

(Tax Update) LHDN’s New E-PCB PLUS System Dear Valued KTP Clients, We hope this newsletter finds you well. We have some crucial updates from the Inland Revenue Board of Malaysia (LHDN) that we believe you should be aware of. LHDN has recently made an early announcement regarding the transition to the new E-PCB PLUS system via the MyTax platform. This transition is expected to bring significant changes to the way employers handle monthly tax deductions (PCB) for their employees. As your trusted partner in navigating the complex world of taxation, we want to ensure you are fully prepared for these upcoming changes. Context The Inland Revenue Board of Malaysia (LHDN) has taken a proactive step by announcing an early transition to the E-PCB PLUS system, a move aimed at modernizing and streamlining the payroll tax deduction process for employers. This transition is set to enhance the efficiency and accuracy of calculating and remitting monthly tax deductions (PCB) through the MyTax platform. Here’s what you need to know about this important development and how it might impact your business operations. 1. What is the E-PCB PLUS System? The E-PCB PLUS system is an upgraded electronic platform introduced by LHDN to simplify the monthly tax deduction process for employers. Unlike the current system, the E-PCB PLUS system integrates directly with the MyTax platform, offering a more comprehensive and user-friendly experience. This new system will not only streamline the calculation of PCB but also improve the accuracy of data submission, reducing the likelihood of errors and ensuring compliance with tax regulations. 2. Why is LHDN Making This Transition? The transition to the E-PCB PLUS system reflects LHDN’s commitment to embracing digital transformation and enhancing its services for taxpayers. By adopting this new system, LHDN aims to provide a more efficient, transparent, and reliable tax filing experience for employers. The E-PCB PLUS system is designed to reduce administrative burdens, minimize errors in PCB calculations, and facilitate easier access to tax records through the MyTax portal. 3. Key Features and Benefits for Employers Employers will benefit from several new features with the E-PCB PLUS system. These include automated updates on the latest tax rates, a streamlined interface for submitting employee tax data, and enhanced security measures to protect sensitive information. The system’s integration with the MyTax platform allows employers to manage all their tax-related activities in one place, from filing tax returns to monitoring payment statuses. This centralized approach will save time and reduce the hassle associated with managing multiple tax filings. 4. Preparing for the Transition: What Should You Do? To ensure a smooth transition to the E-PCB PLUS system, we recommend that all employers familiarize themselves with the new system requirements and functionalities. LHDN is expected to provide detailed guidelines and training sessions in the coming months to help employers adapt to the new platform. We also encourage you to review your current payroll processes and systems to ensure compatibility with the E-PCB PLUS system. 5. How Can KTP Help? As always, KTP is here to support you through this transition. Our team of experts is ready to assist you in understanding the new system and its implications for your business. We can provide personalized guidance on how to integrate the E-PCB PLUS system into your existing payroll processes, ensuring a seamless shift and continued compliance with LHDN requirements. Conclusion The introduction of the E-PCB PLUS system marks a significant step towards a more efficient and modern tax administration in Malaysia. As we move closer to the implementation date, we encourage all our clients to stay informed and proactive in preparing for these changes. Should you have any questions or need further assistance, please do not hesitate to reach out to our team. We look forward to helping you navigate these changes smoothly. Warm regards, KTP Team 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 Website www.ktp.com.my Instagram https://bit.ly/3Rko5kN Linkedin https://bit.ly/3sapf4l 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. 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 vacancies in Johor Bahru for interns, graduates & experienced candidates. Instagram https://bit.ly/3u2PxHg Facebook http://bit.ly/3rPxz9o #Thk #KTP read more

(Tax Update) Interest-Free Loans – Are You at Risk? Dear Valued Clients, Are you providing interest-free loans between your companies? If so, it's time to take a closer look! The Malaysian Inland Revenue Board (IRB) has ramped up its scrutiny on these transactions, and they’re not playing around. What’s Happening? The IRB is closely examining interest-free loans between related parties, including those from directors to their companies. Even if no interest is charged, the IRB considers these loans as generating ''deemed interest income,'' which is taxable. This could result in an unexpected tax bill, plus a 5% surcharge tax penalty for what the IRB views as unpaid interest. Why Now? Although the rules have been in place for years, the IRB is now strictly enforcing them. Under Section 140B of the Income Tax Act 1967 and Public Ruling No. 8/2015 Loan or Advances to Director by a Company, the IRB has the power to retroactively tax interest income on these loans, with a look-back period of up to seven years. This means you could be liable for back taxes on past transactions. Legal and Compliance Risks If you haven't been reporting these loans or justifying their interest-free nature, you could face penalties. The IRB argues that interest-free loans violate the arm's length principle—meaning they're not conducted on terms that independent parties would agree to. There is also no guarantee that a company making a payment under such a loan will receive a corresponding tax deduction. Deductions are only allowed if the payment meets the 'wholly and exclusively for the production of income' rule. But it doesn't stop at loans. The IRB’s scrutiny also covers other financial arrangements such as cash advances, payments on behalf of related parties, long-outstanding trade debts, financial support, and guarantee fees. It’s essential to determine whether these are genuine loans or could be seen as equity instruments. IRB’s Active Enforcement The IRB is actively enforcing these rules, sending letters to taxpayers requesting explanations for their interest-free loan arrangements. If the IRB isn't satisfied with your explanations or documentation, you could face hefty fines and back taxes. What Should You Do? Best Practices to Follow To protect your business from these risks, it’s crucial to: Keep Proper Documentation Always have loan agreements in place and maintain clear records justifying any interest-free loans. Review Your Financial Arrangements Conduct a thorough review of all transactions to ensure they are properly classified and reported. Seek Professional Guidance Engage with tax professionals to help navigate these complex rules and ensure your compliance with all tax regulations. Transfer Pricing and Tax Evasion Remember, transfer pricing—pricing transactions between related entities to minimize taxes—is a primary method of tax avoidance that the IRB is targeting. Make sure your transactions are compliant with Malaysian laws to avoid being flagged for tax evasion. Conclusion With the IRB’s increased scrutiny, it’s more important than ever to ensure your financial practices are in line with current tax laws. Don’t wait until it’s too late—take action now to review your interest-free loans and related transactions to avoid any surprises. Stay informed, stay compliant, and reach out to us at KTP if you need any assistance navigating these changes. Thank you for reading our weekly newsletter! Best regards, KTP Team Credit : 'Interest-Free Loans Blitz Is Now Haunting Taxpayers,' as reported by Thannees.com.''   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 Website www.ktp.com.my Instagram https://bit.ly/3Rko5kN Linkedin https://bit.ly/3sapf4l 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. 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 vacancies in Johor Bahru for interns, graduates & experienced candidates. Instagram https://bit.ly/3u2PxHg Facebook http://bit.ly/3rPxz9o #Thk #KTP read more

(Tax Update) MIDA Reinvestment Incentive Eligibility Dear KTP Clients, As a licensed tax agent with years of experience, I’ve seen how the right tax incentives can make a significant difference for businesses in Malaysia. Recently, a client of ours, the boss of a well-established manufacturing company producing automotive spare parts, approached me with a question that I believe many of you in similar industries might be asking: “Am I eligible for the new reinvestment incentive under the New Industrial Master Plan 2030 (NIMP 2030)?” Let’s walk through the scenario. This particular company has been in operation for over 10 years, a solid track record in the industry. Previously, they claimed Pioneer Status, a tax incentive that many companies in the manufacturing sector have benefited from. Now, as they consider expanding their operations to meet increasing demand, the question of eligibility for the new reinvestment incentive arises. The Incentive: What’s on the Table? Under the NIMP 2030, the government has introduced a tiered Investment Tax Allowance (ITA) aimed at encouraging businesses to reinvest in high-growth, high-value activities. The incentive is split into two tiers: ✅ Tier 1: Offers an ITA of 100% of qualifying capital expenditure (QCE), which can be set off against 100% of statutory income (SI). ✅ Tier 2: Provides an ITA of 60% of QCE, set off against 70% of SI. Both tiers come with a 5-year incentive period, a substantial benefit for companies looking to expand or diversify their operations. Are You Eligible? Here’s where it gets interesting. To qualify for this incentive, your company must meet several criteria: ✅ Operational History Your company must be a resident manufacturing company incorporated under the Companies Act 2016 and must have been in operation for at least 36 months. Given that your company has been running for over 10 years, this criterion is clearly met. ✅ Previous Incentives If your company has previously claimed a tax incentive, such as Pioneer Status under the Promotion of Investment Act 1986, the incentive period for that must have ended. With your Pioneer Status period now behind you, this opens the door to new opportunities like the NIMP 2030 incentive. ✅ Project Type The incentive applies if your company is undertaking an expansion (increasing production capacity or market share) or diversification (introducing new products) project within the manufacturing sector. ✅ Timing This is crucial. The company must submit the incentive application to MIDA before the commencement of the proposed project. In this context, ‘commencement’ is specifically defined as the issuance of the first sales invoice related to the proposed project. If you’re planning an expansion or diversification project, I strongly recommend that you prepare your application as soon as possible to ensure it is submitted to MIDA before you issue the first sales invoice for the project. Past blog 15 August 2024 New Tax Incentive Under the Industrial Master Plan 2030 https://www.ktp.com.my/blog/reinvestment-incentive-under-the-industrial-master-plan/15aug2024 Note: The information provided in this newsletter is for general guidance only and should not be considered as professional advice. Always consult with a tax professional before making any business decisions.   PS : Authored by Mr Koh Teck Peng, the Group Principal, in his personal LinkedIn post https://bit.ly/3YT8GgA read more

(Tax Update) Tax Deductible for Hungry Ghost Praying Expenses In Malaysia, many businesses observe the Hungry Ghost Month by holding prayer sessions, which may include offerings and ceremonies. Understanding the tax implications of these expenses is crucial, especially given the cultural significance of this period. Most taxpayer Here’s a detailed explanation of how these expenses can be categorized and which are tax-deductible. 1. Tax Deductible Expenses (Section 33, Income Tax Act 1967) Under Section 33(1) of the Income Tax Act 1967, expenses that are ''wholly and exclusively incurred in the production of income'' are deductible. For businesses, this includes expenses that are directly related to operations and maintaining employee morale or customer relations. a) Staff Refreshments Expenses for food, drinks, and other refreshments provided during the prayer sessions can be classified as staff refreshments. These expenses are generally deductible under Section 33(1) if they are part of the company’s customary practice to foster goodwill and maintain good working relationships with employees. The deductibility is further supported by Public Ruling No. 1/2003 on ''Perquisites From Employment,'' which clarifies that reasonable staff welfare expenses, such as refreshments during events, are allowable. b) Expenses for Staff Welfare Related expenses, such as venue setup and basic offerings that are part of the staff’s well-being during the prayer ceremony, can also be considered deductible under the same section. These are seen as necessary for maintaining a harmonious workplace, thus directly contributing to the production of income. 2. Non-Deductible Expenses (Section 39, Income Tax Act 1967) Under Section 39(1) of the Income Tax Act 1967, certain expenses are specifically disallowed as deductions, even if they are related to business activities. a) Ceremonial Items Expenses incurred for ceremonial items such as papercraft, incense papers, and other related materials used during prayers fall under this category. These items are considered non-business expenses, primarily personal or cultural, and therefore, do not qualify for a deduction under Section 39(1). b) Excessive Expenditure If the expenses for refreshments or other related items are deemed excessive or extravagant, they could also be disallowed under Section 39(1) as they may not be seen as wholly and exclusively for business purposes. 3. Other Relevant Sections and Public Rulings Beyond Sections 33 and 39, Public Ruling No. 3/2013 on ''Entertainment Expenses'' provides additional insights. It clarifies that expenses on food and beverages for employees during work-related events are generally allowable, provided they are reasonable and not excessive. Summary In conclusion, when it comes to tax-deductible expenses during the Hungry Ghost Month: Expenses for food, drinks, and related items provided during prayers can be tax-deductible under Section 33(1) and can be categorized as staff refreshments or staff welfare. Expenses for papercraft, incense papers, and similar items are not deductible under Section 39(1). Businesses should ensure that these expenses are reasonable, directly related to the production of income, and properly documented to support their tax filings. For further guidance, consulting with a licensed tax agent is advisable to ensure compliance with the Income Tax Act 1967 and related public rulings. read more

(Tax Update) Consolidated Self-Billed for Import of Goods or Services According to the Inland Revenue Board of Malaysia (IRBM) letter dated 12 August 2024, addressed to the Chartered Tax Institute of Malaysia (CTIM), the following key issues were clarified regarding the implementation of consolidated self-billed e-invoices for the import of goods or services: Timing During Relaxation Period Even during the six-month interim relaxation period, taxpayers must issue consolidated self-billed e-invoices monthly, within seven days after the end of the month. Importation of Goods For goods cleared by customs in August 2024, self-billed e-invoices must be issued as follows: Individual e-invoice: By 30 September 2024. Consolidated e-invoice: By 7 October 2024. Importation of Services: For services either paid for or invoiced in August 2024: Individual e-invoice: By 30 September 2024. Consolidated e-invoice: By 7 October 2024. Clarifications No e-invoice is required if goods/services were paid for or invoiced before the mandatory implementation date. Further Action IRBM will provide more details in upcoming FAQs to clarify the e-invoice requirements. This should provide a clear and concise understanding of the recent e-invoicing updates. 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 Website www.ktp.com.my Instagram https://bit.ly/3Rko5kN Linkedin https://bit.ly/3sapf4l 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. 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 vacancies in Johor Bahru for interns, graduates & experienced candidates. Instagram https://bit.ly/3u2PxHg Facebook http://bit.ly/3rPxz9o #Thk #KTP read more

(Tax Update) Understanding the Manufacturing License in Malaysia: What You Need to Know If you're running a manufacturing business in Malaysia or planning to start one, understanding the manufacturing license is crucial. This license isn't just a formality; it's a key requirement that can impact your business operations, particularly when dealing with local authorities. In this blog, we'll break down what a manufacturing license is, how to apply for it, why it's important, and who MIDA is. What is a Manufacturing License? A manufacturing license is an official permit issued by the Malaysian Investment Development Authority (MIDA) that allows businesses to carry out manufacturing activities in Malaysia. This license is mandatory under the Industrial Coordination Act 1975 for any manufacturing company with a share capital of RM2.5 million and above or employing 75 or more full-time workers. How to Apply for a Manufacturing License? Applying for a manufacturing license is a straightforward process but requires careful preparation. Here’s a step-by-step guide: Prepare Your Documentation Ensure all your company documents are in order, including your business plan, company profile, and relevant financial statements. Submit an Online Application Applications for the manufacturing license must be submitted through MIDA's online system, which includes filling out the necessary forms and uploading your documents. MIDA Review Once submitted, MIDA will review your application. This process may involve a site visit to verify your operations. Approval and Issuance If your application is successful, MIDA will issue the manufacturing license. This license should be renewed periodically as required. Why is the Manufacturing License Important? The manufacturing license is essential for several reasons: Compliance with the Law Operating without a license can lead to penalties, including fines or business shutdowns. Local Council Requirements It's rumored that local councils in Malaysia are increasingly requiring manufacturing licenses as part of the criteria for approving business and signboard licenses. Without it, your business may face difficulties in obtaining these necessary approvals. Facilitating Investment A valid manufacturing license can also make it easier to attract investors, as it demonstrates that your business complies with Malaysian regulations. Who is MIDA? The Malaysian Investment Development Authority (MIDA) is the principal government agency responsible for promoting the manufacturing and services sectors in Malaysia. MIDA assists companies in the application process for manufacturing licenses and provides support in navigating the regulatory environment. Established in 1967, MIDA has been pivotal in driving Malaysia's industrial development. When Should You Apply? You should apply for a manufacturing license as soon as you plan to engage in manufacturing activities that meet the criteria under the Industrial Coordination Act 1975. Early application ensures you can legally operate your business and avoid delays in starting your operations. Conclusion Securing a manufacturing license is a critical step for any manufacturing business in Malaysia. Not only does it ensure compliance with local laws, but it also supports your business in obtaining necessary approvals from local councils. If you're unsure where to start, KTP is here to guide you through the process. Contact us today to learn more about how we can assist you in securing your manufacturing license. For more detailed information on manufacturing licenses, visit our website at www.ktp.com.my. 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 Website www.ktp.com.my Instagram https://bit.ly/3Rko5kN Linkedin https://bit.ly/3sapf4l 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. 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 vacancies in Johor Bahru for interns, graduates & experienced candidates. Instagram https://bit.ly/3u2PxHg Facebook http://bit.ly/3rPxz9o #Thk #KTP read more

(Tax Update) New Tax Incentive Under the Industrial Master Plan 2030 Dear KTP Clients, We hope this newsletter finds you well. At KTP, we are committed to keeping you informed about the latest developments in tax regulations that could impact your business operations. Today, we would like to bring to your attention a significant new tax incentive under the New Industrial Master Plan 2030 (NIMP 2030), which could benefit your company. Introducing the Reinvestment Incentive The Malaysian government, through the Malaysian Investment Development Authority (MIDA), has introduced a reinvestment incentive aimed at encouraging companies to continue investing in high-growth and high-value activities. This incentive comes in the form of a tiered Investment Tax Allowance (ITA) and is particularly beneficial for companies that have exhausted their Reinvestment Allowance (RA) period. Who Is Eligible? To qualify for this incentive, your company must meet the following criteria: Incorporated and Operating Your company must be a resident manufacturing company incorporated under the Companies Act 2016 and must have been in operation for at least 36 months. If your company has previously received tax incentives under the Promotion of Investment Act 1986 or the Income Tax Act 1967, those incentive periods must have ended. If your company is currently claiming Reinvestment Allowance under the Income Tax Act 1967, you can choose to claim either RA or the new reinvestment incentive under the NIMP 2030 for a particular year of assessment. However, the 15-year RA incentive period will continue, even if you opt for the new incentive. Expansion or Diversification Your company must be involved in an expansion or diversification project within the manufacturing sector. This means either increasing production capacity or venturing into new product lines that require different sets of skills, knowledge, or machinery. One Round Only Your company is eligible for only one round of the reinvestment incentive under the NIMP 2030. If a related company has already been approved for this incentive, your company can only apply for a different product or activity. Eligible Sectors: Aerospace, Automotive, Chemical, Electrical & Electronics, Food Processing, Halal, Machinery & Equipment, Medical Devices, and more. How Does the Incentive Work? The reinvestment incentive is available in two tiers, depending on the nature and scope of your investment: Tier 1 Offers an ITA of 100% on qualifying capital expenditure (QCE), which can be set off against 100% of your statutory income. This tier is available for five years. Tier 2 Offers an ITA of 60% on QCE, which can be set off against 70% of your statutory income, also available for five years. The tiering is based on an outcome-based approach, where Tier 1 requires companies to meet additional conditions, such as: Creating high-value jobs with a basic monthly salary of MYR 10,000 for Malaysian employees. Utilizing local suppliers and service providers. Adopting green technologies or contributing to sustainable economic development. Application Process Applications for this incentive can be submitted to MIDA between 1 January 2024 and 31 December 2028. It is important to note that your application must be submitted before issuing the first sales invoice for the proposed project. What Should You Do Next? If your company is planning an expansion or diversification project, we highly recommend exploring this incentive to maximize your tax benefits. This could be an excellent opportunity to reduce your tax burden while contributing to Malaysia's industrial growth. At KTP, we are here to help you navigate the application process and ensure you meet all the necessary conditions. Please do not hesitate to contact us if you need further information or assistance. 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 Website www.ktp.com.my Instagram https://bit.ly/3Rko5kN Linkedin https://bit.ly/3sapf4l 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. 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 vacancies in Johor Bahru for interns, graduates & experienced candidates. Instagram https://bit.ly/3u2PxHg Facebook http://bit.ly/3rPxz9o #Thk #KTP read more