(Tax Update) Capital Gain Tax: Guidelines on Capital Gains Tax for Unlisted Shares The Inland Revenue Board of Malaysia has issued the Guidelines on Capital Gains Tax for Unlisted Shares dated 1 March 2024 on its website. The CGT Guidelines explain the CGT treatment on the gains or profits from the disposal of: a.   Shares of a company incorporated in Malaysia not listed on the stock exchange; and b.   Shares of a controlled company incorporated outside Malaysia that owns real property situated in Malaysia or shares of another controlled company or both. Key Summaries of the Exemption Order Introduction of CGT under the Income Tax Act 1967 (ITA) effective from January 1, 2024, with implementation starting March 1, 2024. CGT applies to profits from the disposal of capital assets, including unlisted shares of companies incorporated in Malaysia and foreign-controlled companies owning property in Malaysia or shares in other controlled companies. The guideline provides explanations for terms such as ''capital asset,'' ''consideration,'' ''disposal,'' ''stock exchange,'' and ''shares.'' Entities liable for CGT include limited liability partnerships, trusts, cooperatives, including Labuan entities subject to tax under ITA. CGT imposition based on the year of assessment in which the disposal transaction occurs. Methodology for determining the disposal and acquisition dates and values of capital assets. Calculation of profits or gains from the disposal of capital assets and the handling of unabsorbed losses. Transfer of capital assets to stock in trade and disposal of shares in relevant companies as per Section 15C of the ITA. Claiming foreign tax credits, the CGT rate, and reporting requirements. Exemptions and conditions under which CGT may not apply or be calculated differently. Past Blog on CGT Read our past blog on CGT Capital gain tax https://www.ktp.com.my/blog/malaysias-budget-2024-capital-gain-tax-part1/23nov23 Exemption Period on CGT https://www.ktp.com.my/blog/capital-gain-tax-malaysia-2024/04jan24 Real property company under CGT https://www.ktp.com.my/blog/real-property-company-under-capital-gain-tax/10jan24 Capital Gain Tax: Filing Deadline https://www.ktp.com.my/blog/capital-gain-tax-filing-deadline/30jan24 Capital Gain Tax: Unresolved Questions https://www.ktp.com.my/blog/capital-gain-tax-unresolved-questions/23feb24 Capital Gain Tax : Gains From Disposal Of Capital Asset Arising From Outside Malaysia Received in Malaysia https://www.ktp.com.my/blog/capital-gain-tax-exemption-foreign-source-income/05march24 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 read more

(Tax Update) Service Tax Increase To 8% We discuss the service tax rate will increase from 6% to 8% on all taxable services with effect from 1 March 2024, except for F&B, telecommunication services, vehicle parking space services and logistic services. The scope of service tax will also be widened to include karaoke centre services, delivery services, brokerage and underwriting services, logistics services as well as repair and maintanence, effective 1 March 2024. Key Summary Service Tax Rate Increase Starting from 1 March 2024, the service tax rate will go up to 8%. Some services like food, beverages, telecom, parking, and logistics will still be taxed at 6%. Credit card fees will stay at RM25 per card per year. Other services like accommodation, clubs, and professional services will be taxed at 8%. Transition Rules for the Tax Increase Services provided before 1 March 2024, will be taxed at 6%, but services after that date will be taxed at 8%. If a service spans 1 March 2024, part of it will be taxed at 6% and the rest at 8%. Payments made before 1 March 2024, for services after that date will be taxed at 6% if provided within six months, and 8% if provided after six months. Special rules will apply to businesses offering services taxed at different rates. Expansion of Taxable Services New services like karaoke centers, brokerage, and logistics will be taxed. Logistics services involve managing the movement and storage of goods and information efficiently. Some services like food delivery and transshipment won't be taxed. Businesses providing logistics services to other businesses will be exempt from tax. Expansion of Taxable Services - Repair & Maintenance Royal Malaysian Custom Departments released the Service Tax guidance for maintenance or repair services in Malaysia, as of February 26, 2024. Key points include: Introduction of service tax on maintenance or repair services under the Service Tax Act 2018 from September 1, 2018. Mandatory registration for providers exceeding a threshold, with a focus on maintenance or repair services. Details on taxable and exempt services, including specific examples. Clarification on the tax treatment of various maintenance and repair activities. Guidelines for service providers on registration, tax imposition, and compliance requirements.The government has unexpectedly decided to expand the scope of the sales and service tax (SST) to include almost all types of repair and maintenance jobs. Maintenance management services related to residential land or buildings provided by developers, joint management bodies, management corporations, or residential associations are not subject to service tax. 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 read more

(Tax Update) Form E FAQ Form E 常见问题呢 阅读我们过去在 Facebook 上的 E/EA 表格上的分享 : 1) Tax Filing Deadline 2022 Malaysia dated on 10/01/2022 https://bit.ly/3r5k2go 2) E呈报(E Filing)Form E 终极秘籍 dated on 15/03/2021 https://bit.ly/35pjcm9 3) 温馨提示 - Form E 截至日期为31/03/2021 dated on 12/03/2021 https://bit.ly/35wKebq 4) Form EA 有什么? Dated on 22/02/2021 https://bit.ly/3g1LQMg 5) 花红几时需要报进Form EA? Dated on 16/02/2021 https://bit.ly/349JSGZ 6) 公司给员工红包可不可以扣税? Dated on 10/02/2021 https://bit.ly/3KPMI4G 7) Deadline for Form E submission is approaching! dated on 09/02/2021 https://bit.ly/3KMqsZL 是时候呈报𝐅𝐨𝐫𝐦 𝐄了，让我们为您复习一遍！dated on 28/01/2021 各位雇主与员工请注意！！！ https://bit.ly/3u4aSCz 9) 你知不知道 ... IRB不再打印+发E表格(Form E) 给雇主! Dated on 25/01/2021 https://bit.ly/349K4pH 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 read more

(Tax Update) Capital Gain Tax: Unresolved Questions Introduction Effective from 1st January 2024, company, limited liability partnership, trust body, and co-operative society which receives gains or profits from the disposal of capital assets consisting of: share of a company incorporated in Malaysia not listed on the stock exchange; or share of a controlled company incorporated outside Malaysia that owns real property situated in Malaysia or shares of another controlled company or both, are subject to Capital Gains Tax (CGT) under the Income Tax Act 1967. Exemption Period Any disposal for the period of 1st January 2024 to 29th February 2024 is exempted from Capital Gains Tax under The Income Tax (Exemption) (No. 7) Order 2023. The taxpayer is not required to submit a tax return for the disposal of that capital asset within the above period. CGT Filing and Tax Payment Deadline IRBM has published Capital Gains Tax Return Form (CGTRF) Filing Programme on 15 January 2024 with key takeaways is summarised as below : Taxpayers are to submit CGT tax returns and make tax payments within sixty (60) days of the date of disposal. For assessments raised under sections 91, 96A, and subsections 90(3), 101(2) of ITA 1967, the tax / balance of tax shall be paid within 30 days from the date of assessment. Nevertheless, a grace period of 7 days is given. Taxpayers are required to submit tax returns through e-Filing (e-CKM Form). Kindly visit MyTax portal at https://mytax.hasil.gov.my to access e-CKM Form from 1st March 2024. Taxpayers shall have a Tax Identification Number (TIN) and Digital Certificate to access e-CKM. Unresolved Questions On January 15, 2024, the Inland Revenue Board of Malaysia (IRBM) shared the filing process for the Capital Gains Tax Return Form (CGTRF) but didn't provide further guidance. With the new Capital Gains Tax (CGT) beginning on March 1, 2024, the lack of clear instructions has left taxpayers and businesses unsure about how to proceed. The Exemption Order does not change the start date for a lower 2% tax option on unlisted shares bought before 2024. If bought between January and February 2024, future sales are taxed at 10%, not 2%. There might be a ''tax-free'' period due to a technicality, but this wasn't officially announced. Redeemable preference shares' redemption isn't clearly defined as a ''disposal'' for CGT, suggesting future clarification. The term ''real property'' lacks a clear definition for CGT purposes, and it's unclear how the 75% test for foreign company disposals applies over time. Exemptions mentioned previously might be added later. For foreign-sourced gains to be tax-exempt, companies must meet certain economic substance requirements in Malaysia. It's uncertain how losses from domestic and foreign asset disposals are treated for tax purposes, indicating a need for further guidance. Past Blog on CGT Read our past blog on CGT Capital gain tax https://www.ktp.com.my/blog/malaysias-budget-2024-capital-gain-tax-part1/23nov23 Exemption Period on CGT https://www.ktp.com.my/blog/capital-gain-tax-malaysia-2024/04jan24 Real property company under CGT https://www.ktp.com.my/blog/real-property-company-under-capital-gain-tax/10jan24 Capital Gain Tax: Filing Deadline https://www.ktp.com.my/blog/capital-gain-tax-filing-deadline/30jan24 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 read more

(Sec update) Role of Company Secretary Under the AMLD Malaysia What is the Role of the Company Secretary’s play as a reporting institution under the Anti-money Laundering, Anti-terrorism Financing and proceeds of Unlawful Activities Act 2001 (AMLA)? What is Malaysian AMLA regime? Before we determine our role, we should understand the meaning of money laundering. Money laundering is a process of converting cash, funds or property derived from criminal activities to give it a legitimate appearance. It is a process to clean ‘dirty’ money to disguise its criminal origin. How about terrorism financing? It is an act of providing financial support to terrorists or terrorist organisations to enable them to carry out terrorist acts or to benefit any terrorist or terrorist organisation. Like many other countries, Malaysia government is highly concerned about this area, where money laundering, terrorism financing and proliferation financing pose a significant challenge to the financial system and the overall business sector. What is The Role of Company Secretary Under AML Company secretaries are required to comply with Bank Negara Malaysia’s (BNM) Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Designated Non-Financial businesses and professions & non-Bank financial institutions policy documents (BNM Policy Document). Company secretaries are appointed as one of the reporting institutions by Bank Negara Malaysia (BNM), they are playing an important role in this area. They are required to take the necessary steps to prevent Money laundering / Terrorism Financing and have a system to report suspected transactions to the Financial Intelligence and Enforcement Department (FIED). Company secretaries have to carry out the following measures to prevent Money Laundering / Terrorism Financing : Compliance with laws Cooperation with law enforcement agencies Establishing internal Control Risk-based approach Customer Due Diligence A Company Secretary is mandated to conduct CDD on customers when establishing business relations by overseeing transactions. To identify and verify the customer’s identity using reliable, independent source documents, data or information such as identification card. Additionally, it is crucial to verify the authorization of any person acting on behalf of the customer and confirm their identity. The company secretary must ensure the beneficial ownership’s identity by using reliable information to ensure confidence in their identification. AMLA Reporting Entity There are many appointed Reporting Institutions, both in the financial and non-financial sectors. For examples: Financial Intermediaries, Lawyers, Accountants, Registered Estate Agents, and etc. All appointed reporting Institutions to work hand in hand with the Malaysian Government and Bank Negara Malaysia to prevent money laundering and terrorism financing, contributing to Malaysia’s brighter future.   PS : Authored by Hui Ting, our secretary associate in THK, in her personal LinkedIn post 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) Form E 常见错误 回顾我们过去在2021年3月16日为 KTP|THK 客户举办的免费网络研讨会 -Form E 常见错误. 这是一次富有成效的活动，为参与者提供了宝贵的见解和知识. 活动由资深专家 Ms. Caroline Lim 担任主持和发言人，她的专业知识和丰富经验为整个研讨会增添了深度和价值. Ms. Caroline Lim 以其独特的洞察力和精湛的表达能力，深入探讨了 Form E 表格常见的错误和解决方法. 她不仅详细解释了可能导致错误的原因, 还分享了有效的纠正措施和最佳实践, 帮助参与者避免在填写表格时犯下相同的错误. 通过她的专业指导, 参与者们对如何正确地填写Form E表格有了更清晰的理解, 增强了他们的专业能力和信心. 这种开放式的交流氛围使每个人都能从彼此的经验中学习, 并共同探讨解决问题的方法, 进一步丰富了整个研讨会的内容和成果. 总的来说，这次研讨会为KTP|THK客户带来了实质性的帮助和价值. 感谢 Ms. Caroline Lim 及所有参与者的付出和贡献, 期待未来我们能继续举办类似的活动，为客户提供更多优质的服务和支持. 在我们的 YouTube 上观看 15 分钟视频 https://youtu.be/84szaL-0Tok 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 read more

(Tax Update) What is the new SST rate in Malaysia 1 March 2024?   In this blog, we discuss the service tax rate will increase from 6% to 8% on all taxable services with effect from 1 March 2024, except for F&B, telecommunication services, vehicle parking space services and logistic services. The scope of service tax will also be widened to include karaoke centre services, delivery services, brokerage and underwriting services, as well as logistics services, effective 1 March 2024. Key Summary Service Tax Rate Increase   Starting from 1 March 2024, the service tax rate will go up to 8%. Some services like food, beverages, telecom, parking, and logistics will still be taxed at 6%. Credit card fees will stay at RM25 per card per year. Other services like accommodation, clubs, and professional services will be taxed at 8%. Transition Rules for the Tax Increase:   Services provided before 1 March 2024, will be taxed at 6%, but services after that date will be taxed at 8%. If a service spans 1 March 2024, part of it will be taxed at 6% and the rest at 8%. Payments made before 1 March 2024, for services after that date will be taxed at 6% if provided within six months, and 8% if provided after six months. Special rules will apply to businesses offering services taxed at different rates. Expansion of Taxable Services:   New services like karaoke centers, brokerage, and logistics will be taxed. Logistics services involve managing the movement and storage of goods and information efficiently. Some services like food delivery and transshipment won't be taxed. Businesses providing logistics services to other businesses will be exempt from tax. Overall, these changes could affect how much tax businesses and consumers pay for certain services in Malaysia. 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

(Sec update) What Directors Should Do After Incorporation Embarking on the corporate journey in Malaysia involves more than just the initial setup. Directors play a crucial role in steering the company through ongoing responsibilities. This article outlines key post-incorporation tasks, including filing Annual Returns, submitting Financial Statements, and managing Tax Returns to LHDN. Adhering to these deadlines is essential to avoid penalties and ensure regulatory compliance. Join us as we explore the vital steps directors must take after incorporation for sustained success in the Malaysian business landscape. Annual Return According to the Companies Act 2016 in Malaysia, the Annual Return is a statutory document that companies need to file with the Companies Commission of Malaysia (SSM). This document allows companies to update and confirm their registered information with the SSM, including details about shareholders, directors, registered office address, share capital, and financial position. Typically, the Company Secretary will prepare the Annual Return for the Director's review, approved via the Directors' Written Resolution. Once approved, the Company Secretary will submit the Annual Return (Section 68) via MBRS. Companies are required to file the Annual Return within 30 days from the anniversary of their incorporation date. Financial Statement The board of directors must ensure that the company's financial statement is submitted within the specified deadline to SSM. The board oversees the financial reporting process, ensuring that management fulfills its responsibilities in preparing accurate and reliable financial statements. After the management account is ready, an approved auditor audits the report to provide assurance in accordance with relevant auditing standards. The auditor expresses an opinion on whether the financial statements present a true and fair view of the company's financial position, results of operations, and cash flows. This opinion is crucial for stakeholders such as bankers, shareholders, employees, and creditors. Once the audited report is ready, the director circulates it within 6 months from the financial year-end to shareholders by conducting a meeting. After circulation, the auditor passes the audited report to the secretary to arrange for submission to SSM within 30 days from the circulation date. Tax Return to the Inland Revenue Board of Malaysia (LHDN): Form E Employers must submit Form E annually to report employees' income details, including their name, identification number, employment income, and tax deductions. Employers are responsible for deducting the appropriate amount of income tax from employees' salaries and remitting it to the tax authorities. The deadline for submitting Form E is typically in March of the following year, done electronically through the e-filing system provided by the Inland Revenue Board. CP204 Used by companies to declare estimated chargeable income and determine installment payments for the upcoming year, CP204 is part of the corporate tax filing process in Malaysia. Companies must submit CP204 within 7 months from the end of their accounting period. Based on the estimated chargeable income declared, companies must make installment payments through the e-filing system. Form C Form C is used by companies to report actual chargeable income, tax adjustments, and other relevant details to the Inland Revenue Board. The deadline for submitting Form C is usually within seven months from the end of the company's financial year. Companies need to provide details of financial transactions, income, expenses, and other relevant financial information. Form C, along with audited financial statements, is typically submitted electronically through the e-filing system. Conclusion Late submission of these crucial documents may result in penalties or compounds imposed by SSM or LHDN. Directors must adhere to these deadlines to maintain compliance and avoid legal repercussions. Engaging these professionals from company secretaries, auditors, accountants, and tax agents not only ensures compliance with regulatory requirements but also provides valuable insights, allowing directors to navigate the intricacies of corporate governance with confidence and precision. This collaboration ensures precision in meeting regulatory requirements, offering directors the necessary support to steer their businesses toward sustained success.   PS : Authored by Syazwan, our secretary associate in THK, in her personal LinkedIn post 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 read more

(Tax Update) Tax Treatment on Company Trip In this blog, we discuss the tax treatment for both local and overseas trips provided by a company to its employees. Here's a key takeaway for your understanding. Company-Sponsored Employee Trips: Understanding Tax Implications When a company offers its employees the opportunity to embark on trips, whether within their home country or abroad, it's important to consider the tax implications for both the employer and the employee. In this article, we'll delve into the tax treatment of these trips in detail. 1. Tax Treatment for Employer and Employee for Local and Overseas Trips Let's break down the tax treatment for both local and overseas company-sponsored trips from the perspective of the employer and the employee: Local Trips: For Employers: The costs incurred for airfares, meals, and accommodation related to local trips are eligible for a full deduction when calculating the company's taxable income. This is classified as an entertainment expense according to the Addendum to Public Ruling No.1/2003 Tax Treatment on Leave Passage. For Employees: Local trips do not impact the employee's taxable income, as there is no leave passage cost associated with these journeys. Overseas Trips: For Employers: In the case of overseas trips, the cost of airfares (treated as leave passage cost) is not deductible for the employer. However, the costs related to food and accommodation are deductible as entertainment expenses, with the condition that they are restricted to the amount spent on the employee. For Employees: For the first overseas trip in a calendar year, employees are eligible for an exemption on the leave passage cost (airfares), limited to a maximum value of RM3,000.00. However, for second overseas trips onwards, the cost of airfares (leave passage cost) becomes assessable as employment income. 2. Key Facts Local Trip: According to the Addendum to Public Ruling No.1/2003 Tax Treatment on Leave Passage, expenses incurred by an employer to facilitate a yearly event within Malaysia involving the employer, employee, and immediate family members fall under the category of entertainment expenses. As such, local company trips are fully deductible in the company's tax computation. From the employee's perspective, these trips do not affect their taxable income, as no leave passage cost is involved. Overseas Trip: Paragraph 10 of Public Ruling No.1/2003 states that expenditures related to leave passages, whether within or outside Malaysia, are not deductible in the company's tax computation. However, the ruling further elaborates: Only the cost of airfares is treated as leave passage cost and is not allowed for deduction. Other costs, such as food and accommodation, are deductible as entertainment expenses but are limited to the amount spent on the employee. For employees, paragraph 8(ii) of this public ruling outlines that an exemption, limited to a maximum value of RM3,000, is granted on the leave passage cost (airfares) for one overseas trip outside Malaysia in a calendar year. Subsequently, for the second overseas trip onwards, the cost of airfares becomes assessable as employment income. Source : Reference Public Ruling No.1/2003 – Tax Treatment of Leave Passage https://phl.hasil.gov.my/pdf/pdfam/PR1_2003.pdf Addendum to Public Ruling No.1/2003 – Tax Treatment of Leave Passage https://phl.hasil.gov.my/pdf/pdfam/PR1_2003_Add1.pdf Income Tax Act 1967 https://phl.hasil.gov.my/pdf/pdfam/Act_53_20190101.pdf Public Ruling No.4/2015 – Entertainment Expense https://phl.hasil.gov.my/pdf/pdfam/PR_4_2015.pdf PS : Authored by Bryan Kam Shi Zhen and Gan Yong Chun, our audit associates with KTP, in their personal LinkedIn post. 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

We Are Hiring Now Are you curious about the KTP experience?   In this enlightening session conducted in English on the Zoom platform, we invite you to dive deep into the diverse experiences at KTP as shared by our dynamic team members: 1. Ain, an enthusiastic intern. 2. Aiman, a motivated fresh graduate. 3. Fatira, an experienced professional. They'll be candidly sharing their personal journeys and insights gained during their first six months at KTP. Don't miss this opportunity to gain insider perspectives and valuable insights into life at KTP! Watch the full (40 minutes) interview in our YouTube   https://youtu.be/GHEiCH0-3MQ Send in your full resume to careers@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/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. 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