Starting 1 December 2024, a new chapter in corporate reporting begins in Malaysia with the mandatory implementation of MBRS 2.0. The enhanced system by the Companies Commission of Malaysia (SSM) requires all companies to file their annual financial statements digitally using the eXtensible Business Reporting Language (XBRL) format.   What is MBRS 2.0? MBRS 2.0 is a digital platform designed to streamline the submission of financial statements, annual returns, and exemption applications. The XBRL format facilitates the structured tagging of financial data, making data analysis and comparison more efficient.   Types of Submissions under MBRS 2.0 MBRS 2.0 mandates the submission of the following documents in XBRL format: Annual Returns (AR): Effective Date: 25 September 2024 Description: Companies are required to file their annual returns electronically through the MBRS platform. Financial Statements and Reports (FS): Phase 1: Effective Date: 1 December 2024 Description: Unaudited financial statements under Companies Act, 2016; Financial Statement for Exempt Private Company (FS-EPC) under Companies Act, 2016; Application for extension of time (EOT) Application & Submission of Court Order Rectification for Unaudited Financial Statement under Companies Act, 2016. Phase 2: Effective Date: 1 March 2025 Description: Financial Statements under Companies Act, 1965; Certificate for Exempt Private Company (Section 260) under Companies Act, 1965; Financial Statement regulated by Bank Negara Malaysia under Companies Act, 1965 & 2016. Application & Submission of Court Order Rectification for Audited Financial Statement under Companies Act, 1965. Effective Date: 1 June 2025 Description: Audited financial statements for all companies under the Companies Act 2016; Application & Submission of Court Order Rectification for Audited Financial Statement under Companies Act, 2016. Phase 3:   Important Points to Note: Digital Submission: All submissions must be made electronically through the MBRS platform. XBRL Format: Financial statements require conversion into XBRL format using the MBRS Preparation Tool (mTool). Compliance is Crucial: Compliance with all MBRS 2.0 regulations is essential, as penalties may be imposed for any non-compliance.'' Embrace the Future of Corporate Reporting MBRS 2.0 represents a significant step towards modernizing corporate reporting in Malaysia. By embracing this new system, businesses can streamline their reporting processes, enhance data accuracy, and improve transparency. 𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru   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 Instagram http://bit.ly/3Rkw6hP Linkedin http://bit.ly/3sapf5l   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   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 read more

What is CP58? CP58 is a tax form issued by Lembaga Hasil Dalam Negeri (LHDN), Malaysia’s Inland Revenue Board. It is used by businesses to declare commission payments made to agents, dealers, or distributors. Who Needs to Issue CP58? Any company that pays commissions exceeding RM5,000 annually to an agent, dealer, or distributor is required to issue a CP58 form. Even if the amount is below RM5,000, businesses may choose to issue it voluntarily. Why is CP58 Important? Tax Compliance – Ensures LHDN can track commission income. Income Declaration – Helps recipients report income in their tax returns. What Information Does CP58 Contain? Payer details – Company name, tax reference, and address. Recipient details – Name, NRIC/Company No., and address. Commission details – Amount paid, including incentives, bonuses, or rewards. When Should CP58 Be Issued? Companies must issue CP58 by 31st March of the following year for commissions paid in the previous year. Are Recipients Required to Pay Tax on CP58? Yes, recipients must report the commission income in their personal or business tax filings. Consequences of Not Issuing CP58 While there is no direct penalty for failing to issue CP58, businesses may face compliance risks under the Income Tax Act 1967, including: Failure to Report Commission Payments – May result in additional taxes, penalties, or an audit. Failure to Maintain Proper Records – Businesses must retain records for 7 years under Section 82A. Incomplete records may lead to fines. Recipient’s Non-Declaration of Income – Agents, dealers, or distributors who fail to declare CP58 income may face penalties for under-reporting. By ensuring proper issuance of CP58, businesses can remain compliant with tax regulations and avoid unnecessary risks. For any further assistance, feel free to contact us! 𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru   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 Instagram http://bit.ly/3Rkw6hP Linkedin http://bit.ly/3sapf5l   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   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 read more

We offer innovative financial management solutions tailored to empower businesses like yours to thrive. By focusing on practical, results-oriented strategies, we help you to optimize resources, moniter progress, and build resilience in an ever-evolving market. Scope of financial management: Cash Flow Management: Ensure operational stability and readiness for growth with solutions designed to forecast, analyze, and maintain a healthy cash flow. Budget Planning & Optimization: Turn your goals into actionable strategies through customized budgets that drive efficiency and align with your business objectives. Key Performance Indicators Development & Tracking: Empower your decisions and growth with tailored KPIs that measure individual and business performance, linking contributions to overall success. Our key strength: Focused Expertise: Our dedicated team brings deep insight and practical know-how to address your financial management needs. Custom Solutions: Every business is unique, and so are our strategies. We focus on what works for you. Collaborative Partnership: We go beyond service provision to become your trusted partner, working hand-in-hand to achieve shared success. read more

Aligned with the strategy and support for the reform agenda to strengthen government governance and the corporate sector ecosystem, the Companies Commission of Malaysia (SSM), has begun phased enforcement of the Limited Liability Partnerships (Amendment) Act 2024 effective from 31 January 2025. The Act will be enforced in stages starting from 31/01/2025, by the SSM. It will be carried out in 3 phases. What will be the Key Changes with the Amendment Act 2024? Key Changes: Beneficial Ownership: The Act sets out new requirements for reporting and disclosing information about the beneficial owners of Limited Liability Partnerships (LLPs). According to Sections 2, 3, 4, 5, Sub-Section 11(a), and Section 13, LLPs are required to identify and record their true owners. Corporate Rescue Mechanisms: New frameworks and provisions related to procedures to support the implementation of sustainable LLP governance under Sections 8, 9, 10 and Sub-Section 11 (b). Sustainable Governance: The amendment strengthens procedures to ensure better governance and sustainability within LLPs as stated in Sections 6, 7, and 12. 3 Phases Implementation: Phase 1 – Following the implementation of the Limited Liability Partnerships (Amendment) Act 2024, all LLPs are granted a 3-month grace period from 01 February 2025 to 30 April 2025 to identify their beneficial owners and record the beneficiary ownership details at the LLP's registered office. From 01 May 2025 to 31 October 2025, LLPs must submit the beneficial ownership information to SSM. During this period, SSM will waive any late fees and correction charges, and no enforcement action will be taken. Phase 2 – Aim to establish procedures that support sustainable LLP governance, with implementation expected by 31 March 2025. Phase 3 - It involves provisions related to the corporate rescue mechanism, which is expected to be enforced by 31 December 2025 The implementation of the Limited Liability Partnerships (Amendment) Act 2024 aims to reduce liability for partners in traditional partnerships, while also enhancing transparency, governance, and support for businesses, and minimizing risks and liabilities for LLPs partners.   LLPs are required to identify and obtain information on beneficial owners, and if an individual is aware that they are a beneficial owner, they have the obligation to inform the LLP, and vice versa. 𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru   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 Instagram http://bit.ly/3Rkw6hP Linkedin http://bit.ly/3sapf5l   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   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 #Thk #Myktp #ktplifestyle #ktpcareer #24years read more

(Tax Update) Unlocking the Johor-Singapore Special Economic Zone (JS-SEZ): Tax Incentives Package from MIDA What is JS-SEZ? Johor is set to become a thriving economic hub with the newly established Johor-Singapore Special Economic Zone (JS-SEZ). This initiative, born out of a collaboration between Malaysia and Singapore, aims to attract businesses and investors by offering an attractive package of tax incentives and business-friendly policies. With the Malaysian Government officially announcing the JS-SEZ tax incentive package on 8 January 2025, many businesses are keen to understand how they can benefit from these incentives. If you’re planning to invest in Johor, this is the perfect time to explore what JS-SEZ has to offer. Who Can Apply? The application period for tax incentives runs from 1 January 2025 to 31 December 2034, and companies must submit their applications to the Malaysian Investment Development Authority (MIDA) via MIDA's online platform. But what exactly are these incentives? Let’s break them down into key categories. Manufacturing Tax Incentives Manufacturing companies investing in JS-SEZ will enjoy significant tax advantages, particularly in sectors like AI and Quantum Computing, Medical Devices, Pharmaceuticals, and Aerospace Manufacturing. Here’s what’s in store for investors: New Companies Companies investing more than RM1 billion: 5% tax rate for 15 years Companies investing between RM500 million to RM1 billion: 5% tax rate for 10 years Existing Companies Companies investing above RM500 million in a new business segment (not an expansion) will receive an Investment Tax Allowance (ITA) of 100% on qualifying capital investment for 5 years, offset against 100% of statutory income. Key Investment Zones: Kulai-Sedenak (AI & Quantum Computing, Medical Devices, Pharmaceuticals) Senai-Skudai (Aerospace Manufacturing & MRO Services) Global Services Hub: A Tax-Friendly Base for Regional Expansion Businesses engaged in strategic business planning, corporate development, regional P&L, and global treasury operations can benefit from a 5% special tax rate for up to 15 years. Eligibility Criteria: Annual operating expenditure of at least RM50 million Business control over at least 10 network companies Minimum annual sales turnover of RM500 million, with foreign exchange inflows into the Malaysian banking system At least 50% of high-value positions (minimum RM10,000 salary) must be filled by Malaysians Key Investment Zones: Johor Bahru Waterfront (Flagship A) Iskandar Puteri (Flagship B) Integrated Tourism Projects: A Boost for Johor’s Hospitality & Attractions For those venturing into tourism, the JS-SEZ provides an Investment Tax Allowance (ITA) of 100% for qualifying capital expenditure incurred within five years, which can be offset against 70% of statutory income each year. Additionally, companies making cash or in-kind contributions to hallmark events within JS-SEZ can enjoy a tax deduction of up to RM1 million per year. Eligibility Criteria: The company must not have an existing tourism-related entity in Malaysia Minimum RM2.5 million paid-up capital Minimum RM500 million investment (excluding land) Development must include a hotel with at least 80 rooms and one major tourist attraction (e.g., water park, convention centre, outdoor sports facility) Key Investment Zones: Desaru-Penawar (Flagship G) Smart Logistics: Investing in the Future of Supply Chains Businesses investing in smart logistics—such as regional distribution hubs, integrated logistics services, cold chain facilities, and dangerous goods storage—will benefit from Investment Tax Allowance (ITA) of 100% on qualifying capital investment within five years, offset against 100% of statutory income. Eligibility Criteria: Minimum RM500 million investment (excluding land) Smart warehouse complex of at least 50,000 m² Compliance with Industrial Building System (IBS) standards set by CIDB 80% of the workforce must be Malaysians 30% of high-value positions (earning RM10,000+) must be filled by Malaysians Key Investment Zones: Tanjung Pelepas (Flagship C) Downstream Specialty Chemicals: Special Tax Rates for High Capital Investments Companies investing in specialty chemicals, polymers, fertilizers, and oleochemicals can benefit from a 5% or 10% tax rate for up to 10 years, depending on investment size. Alternatively, they may opt for an ITA of 100% on qualifying capital investment within five years, offset against 100% of statutory income. Eligibility Criteria: Investment of at least RM500 million (excluding land) Companies must be either new or diversifying into eligible activities Minimum RM2.5 million paid-up capital Key Investment Zones: Tanjung Langsat-Kong Kong (Flagship D) Expanded Renovation Cost Incentive Qualifying businesses operating within JS-SEZ can claim Accelerated Capital Allowance (ACA) for renovation costs, covering: Electrical, gas, and water systems Kitchen and sanitary fittings Flooring, partitions, and ceilings Air-conditioning systems Employee facilities (e.g., daycare centres, recreation rooms, surau) Smart solutions and green elements This incentive is applicable once throughout the business operation in JS-SEZ. Conclusion: A Golden Opportunity for Investors The Johor-Singapore Special Economic Zone (JS-SEZ) is an unprecedented opportunity for businesses looking to expand in Malaysia. With tax incentives spanning manufacturing, logistics, tourism, and global services, the region is set to become a premier investment hub. Companies looking to capitalize on these incentives should act quickly and submit applications before the 31 December 2034 deadline. For further assistance, visit MIDA’s website or contact Invest Malaysia Facilitation Centre Johor (IMFC-J) at IMFC-J’s website. Stay tuned for more updates from KTP as we continue to guide businesses in navigating Malaysia’s tax landscape! read more

A bonus share, also known as a scrip issue or capitalization issue, is a free additional share given to existing shareholders in proportion to their current holdings. Instead of paying dividends in cash, the company issues additional shares. This process does not involve any new capital from shareholders; it merely capitalizes a portion of the company's retained earnings or reserves, converting them into share capital.   Key Characteristics of Bonus Shares: Proportional Allocation: Bonus shares are allotted to existing shareholders based on a specific ratio (e.g., 1 bonus share for every 2 existing shares). No Additional Cost: Shareholders do not pay any extra money for the bonus shares. They receive them for free, proportionate to their current shareholding. The issuance of bonus shares involves converting the company's reserves (such as retained earnings, share premium account, or capital redemption reserve) into share capital. The total share capital of the company increases, but the overall value of the shareholders' investment remains the same because the market price of the shares typically adjusts downward to reflect the increased number of shares. The increase in the number of shares can improve the liquidity of the company's shares in the stock market, making it easier for shareholders to buy and sell. Capitalization of Reserves: Increase in Share Capital: Enhanced Liquidity: Example If a shareholder owns 100 shares of a company, and the company declares a 1:1 bonus issue, the shareholder will receive an additional 100 shares, resulting in a total holding of 200 shares. However, the market price of each share may be adjusted accordingly to reflect the increased number of shares in circulation.   Purpose of Issuing Bonus Shares Reward Shareholders: Bonus shares serve as a reward to shareholders by giving them additional shares without cost, effectively increasing their investment. Signal of Confidence: Issuing bonus shares can signal the company's confidence in its future profitability and financial stability. By increasing the number of shares outstanding, the company can enhance the marketability and trading volume of its shares. For shareholders, receiving bonus shares can be more tax-efficient compared to receiving cash dividends, depending on the tax regulations in their jurisdiction. Improving Market Liquidity: Tax Efficiency: In summary, bonus shares are an effective way for companies to reward shareholders, increase the equity base, and improve stock liquidity without affecting the shareholders' proportionate ownership. 𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru   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 Instagram http://bit.ly/3Rkw6hP Linkedin http://bit.ly/3sapf5l   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   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 #Thk #Myktp #ktplifestyle #ktpcareer #24years read more

JS-SEZ对柔佛中小企业的影响 最近柔佛的天气非常炎热，尽管过去一周有下过雨。 去年，我们见证了森林城市特别金融区的成立，以及几个大型数据中心的建立。今年，柔佛-新加坡特别经济区（JS-SEZ）已经启动。看起来柔佛正朝着成为下一个深圳迈进！ JS-SEZ的重点信息 JS-SEZ专注于11个经济领域，包括制造业、物流、食品安全、旅游业、能源、数字经济、绿色经济、金融服务、商业服务、教育和医疗。 其他优先领域还包括航空航天、医疗器械、电子电器、化学和制药行业。 ✅ 特殊企业税率：对于从事高增长和高附加值活动的新投资公司，最高享受15年5%的企业税率。 ✅ 特殊个人所得税率：符合条件的知识型员工在JS-SEZ可享受最高10年15%的个人所得税率。 JS-SEZ对柔佛中小企业的潜在益处 柔佛-新加坡特别经济区（JS-SEZ）是中小企业的“游戏规则改变者”，为企业加速增长提供了丰富的机会。以下是潜在益处的简要概述： ✅ 进入更大的市场 JS-SEZ将吸引跨国公司，为中小企业扩大客户群和增加销售量创造了新机会。中小企业还可以作为供应商或服务提供商融入更大的供应链，确保业务更加稳定。 ✅ 改善的基础设施 借助更先进的物流和现代化设施，中小企业可享受运输成本降低、更快的交付，以及更方便获取市场和原材料的优势。 ✅ 财务增长 JS-SEZ的外国投资将通过增加需求、建立合作伙伴关系和改善融资渠道为中小企业带来机会。 ✅ 创新与技能发展 该区通过与大型公司的知识交流和技能发展计划，帮助中小企业创新，提高竞争力。 ✅ 政府支持 税收优惠和专门的商业支持计划可以帮助中小企业提升运营能力，开拓新市场。 JS-SEZ对中小企业来说潜力巨大，但关键在于企业是否能够适应并抓住这些机遇。 JS-SEZ的潜在威胁 当然……JS-SEZ也为本地中小企业带来挑战，包括外国企业的激烈竞争、技能短缺、成本上升、供应链中断以及技术差距等问题。 本地中小企业必须适应不断变化的市场、新法规和消费者行为，才能在压力下茁壮成长，并充分利用这些新兴机遇。 read more

(Tax Update) An Overview of The Johor-Singapore Special Economic Zone (JS-SEZ) The Johor-Singapore Special Economic Zone (JS-SEZ) has recently been established, marking a significant milestone in economic cooperation between Malaysia and Singapore. Here's an update on key aspects of the JS-SEZ that investors should be aware of : Overview and Objectives The JS-SEZ, spanning 3,505 sq. km in southern Johor, aims to strengthen economic ties between Malaysia and Singapore. The zone's primary objectives include: Creating 20,000 skilled job opportunities within the first five years Supporting the expansion of 50 projects in the initial five years and 100 projects in its first decade Attracting high-value investments and promoting economic growth in both countries Key Sectors and Incentives The JS-SEZ focuses on 11 economic sectors, including manufacturing, logistics, food security, tourism, energy, digital economy, green economy, financial services, business services, education, and health. Additional priority sectors include aerospace, medical devices, electrical and electronics, chemicals, and pharmaceuticals. Investors can benefit from the following incentives: Special corporate tax rate of 5% for up to 15 years for companies undertaking new investments in high-growth and high value-added activities Special tax rate of 15% for up to 10 years for eligible knowledge workers in the JS-SEZ Additional tailor-made incentives for businesses operating in certain flagship zones Infrastructure and Connectivity The JS-SEZ aims to improve cross-border connectivity between Singapore and Johor through: Passport-free QR code clearance at Singapore's land checkpoints with Malaysia (implemented since March 2024) Development of the Rapid Transit System Link (RTS), a 4km light-rail link scheduled to commence operations by the end of 2026 Streamlined customs procedures for land intermodal transshipments Investment Opportunities For investors, the JS-SEZ presents opportunities in various sectors: Construction and property development, with demand for industrial buildings, offices, and infrastructure Renewable energy projects and cross-border energy trading High-tech industries such as AI, quantum computing, aerospace, and medical devices manufacturing Economic Impact The JS-SEZ is projected to contribute significantly to Malaysia's economy : Expected to add 117.1 billion ringgit (approximately US$28 billion) annually to Malaysia's economy by 2030 Potential to rival the Klang Valley as Malaysia's economic engine within the next decade. Invest Malaysia Facilitation Centre – Johor (IMFC-J) Invest Malaysia Facilitation Centre - Johor (IMFC-J) is a recently established one-stop center designed to streamline and expedite investment processes in the Johor-Singapore Special Economic Zone (JS-SEZ). Here are the key aspects of IMFC-J : IMFC-J serves as the primary investment focal point in Johor, acting as an intermediary between investors and key government bodies and agencies. Its core objectives include: Facilitating and coordinating end-to-end investment-related processes Expediting various approval procedures Offering a streamlined experience for investors interested in setting up businesses in Johor IMFC-J offer Consulting and advisory services tailored to Johor's unique challenges and opportunities Handling of all investment matters in Johor Coordination with various government agencies and departments Contact IMFC-J Interim Office :Level 3, Wisma Sunway Big Box,Persiaran Medini 5, Sunway City Iskandar Puteri,79250, Johor Bahru, Johor, Malaysia. Tel : +607 233 3000 Fax : +607 233 3001 Email : imfcj@irda.com.my As an investor, it's important to monitor the progress of the JS-SEZ, particularly regarding infrastructure development, regulatory clarity, and the achievement of investment and job creation targets. The success of this ambitious project will depend on effective implementation and the ability to address these challenges. Let’s wait for full details on JS-SEZ from IMFC-J most likely after the Chinese New Year. Stay tune for any updates from KTP. 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/3jZuZuI 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. 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(Tax Update) Transfer Pricing Guidelines 2024 The Inland Revenue Board of Malaysia (IRBM) released the Malaysia Transfer Pricing Guidelines 2024 (MTPG 2024) on 24 December 2024, effective from the year of assessment 2023. This new guideline expands upon the previous 2017 version, offering detailed clarifications and introducing new directives for taxpayers in preparing contemporaneous transfer pricing documentation (CTPD) in Malaysia. Scope and Exemptions for CTPD Preparation To alleviate compliance burdens, MTPG 2024 exempts certain individuals and entities from preparing CTPD: Individuals not engaged in business activities. Individuals conducting business (including partnerships) involved solely in domestic controlled transactions. Entities engaged in controlled transactions totaling no more than MYR1 million. Entities involved exclusively in domestic controlled transactions with another party, provided both parties: Do not benefit from tax incentives. Are subject to the same headline tax rate. Have not incurred losses for two consecutive years prior to the controlled transactions. Despite these exemptions, all parties must adhere to the arm's length principle and maintain relevant documentation to substantiate their transfer pricing positions. This requirement ensures readiness for potential audits, where proof of compliance may be necessary. Revised Thresholds for Full and Minimum CTPD MTPG 2024 updates the criteria for preparing full CTPD: Full CTPD: Required for taxpayers with: Gross business income exceeding MYR30 million. Engaging in cross-border controlled transactions totaling MYR10 million or more annually. Receiving or providing controlled financial assistance exceeding MYR50 million annually. Taxpayers below these thresholds may opt for a minimum CTPD, which includes: Worldwide group structure. Organizational structure. Details of key controlled transactions related to principal activities or constituting 20% or more of operating revenue. Pricing policy. All CTPD must be prepared before the tax return filing deadline for the relevant assessment year. Notably, while minimum CTPD does not explicitly require a comparability analysis, the IRBM may request one to justify transfer pricing, suggesting that preparing such an analysis proactively could be beneficial. Safe Harbor Rule The guidelines introduce a safe harbor rule for low value-adding intra-group services (LVAS), permitting a 5% mark-up without the need for a benchmarking study under the simplified approach. This rule aims to streamline compliance for specific transaction types. To qualify as LVAS, the services must meet the following criteria: they should be supportive in nature, not integral to the core business of the MNE group, and should neither involve nor result in the creation of unique or valuable intangibles. Additionally, they must not involve the assumption or control of significant risks by the service provider or lead to the creation of such risks. Arm’s Length Range The guidelines redefine the arm's length range (ALR), narrowing it from the 37.5th to the 62.5th percentile. This change may increase the risk of financial deviations from the ALR, potentially triggering transfer pricing adjustments. The two-step approach is outlined as follows: Step 1: Determine the arm's length range If the tested price falls within the arm's length range, it is deemed to comply with the arm's length principle. If it falls outside the range, proceed to Step 2. Step 2: Calculate the median The median is calculated as the midpoint between the lower quartile and the upper quartile. Penalties and Enforcement The MTPG 2024 addresses penalties for non-compliance, which can be substantial: Fines ranging from RM20,000 to RM100,000 per year of assessment Potential imprisonment Surcharges of up to 5% on transfer pricing adjustments made by the IRBM Transfer Pricing Audit Framework 2024 Alongside MTPG 2024, the IRBM introduced the Transfer Pricing Audit Framework 2024 (TPAF 2024) on December 24, 2024, effective from January 1, 2025. This framework outlines the procedures and expectations for transfer pricing audits, emphasizing: Audit Selection: Based on risk assessments considering factors like transaction value, complexity, and compliance history. Audit Process: Involves information gathering, analysis, and discussions with taxpayers to assess compliance with the arm's length principle. Documentation: Stresses the importance of maintaining comprehensive and accurate CTPD to facilitate efficient audits. Penalties: Details consequences for non-compliance, including potential adjustments and penalties. TPAF 2024 aims to enhance transparency and consistency in transfer pricing audits, encouraging voluntary compliance among taxpayers. Implications for Taxpayers Taxpayers should assess their transactions against the updated thresholds to determine the appropriate level of documentation required. Even if exempt from full CTPD, maintaining sufficient records to demonstrate compliance with the arm's length principle is crucial. Proactive preparation can mitigate risks during potential audits. In summary, MTPG 2024 and TPAF 2024 represent significant advancements in Malaysia's transfer pricing landscape, promoting clarity, compliance, and alignment with international standards. Taxpayers are advised to familiarize themselves with these guidelines to ensure adherence and prepare for the enhanced audit framework. 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/3jZuZuI 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. 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