TAX CONSULTANCY SERVICES

• With vast experience working with more than 1500 local and foreign investors, we are capable to offers range of tax services to give our client a best advantages on their business. A successful and high quality tax planning will help the business drives growth and profitability. Clients engage with us because we combine expert knowledge in business and industries and maintain a good relationship with the tax authorities.
• Identify tax risk on your business.
• Understanding and meet your business goals.
• Resolve the outcome and problems from tax authorities as arise.
• Provide a quality tax service and accounting and demonstrate a best approach.

TAX COMPLIANCE

Income tax is a direct tax regulated under Income Tax Act 1967. The Inland Revenue Board (IRB) is responsible for the overall administration of direct taxes in Malaysia at the moment. Taxation in Malaysia has gone through tremendous changes in recent years. Under today’s self-assessment, there is the new IRB strategy of compliance management through taxpayer education, desk audit, field audit and tax investigation. With the ever changing business environment, the increasing complexity of business transactions and the need to ensure proper record-keeping to capture these transactions for tax purposes, entrepreneurial are essential to keep updating with the latest tax information.

TAX AUDIT

• Under the Self-Assessment System, tax audit is a primary activity of the Inland Revenue Board of Malaysia (IRBM). It is aimed at enhancing voluntary compliance with the tax laws and regulations. A taxpayer can be selected for an audit at any time.
• A tax audit is an examination of a taxpayer’s business records and financial affairs to ascertain that the right amount of income should be declared and the right amount of tax should be calculated and paid are in accordance with tax laws and regulations. IRBM carries out two (2) types of audit, namely desk audit and field audit.
• If it is discovered following an audit finding that there has been an understatement or omission of income, a penalty will be imposed under subsection 113(2) or paragraph 44B(7)(b)* of the ITA in which the penalty rate is equal to the amount of tax undercharged (100%) accordingly. However, the DGIR in exercising his discretionary powers under subsection 124(3) may impose a lower penalty of 45% on the tax undercharged.

CORPORATE TAX

Companies, limited liability partnership, trust bodies and cooperative societies which are dormant and/ or have not commenced business are required to furnish the ITRF (including Form E) with effect from Year of Assessment 2014.

Every taxpayer who is liable to tax is required to declare his income to IRB. The taxpayer is responsible for:-

• Furnish the estimated tax payable (CP204) via e-Filing (e-CP204);
• Pay the estimated tax payable by using CP207 on / before 15th day of every month;
• Furnish income tax return form (Form C) via e-filing (e-C);
• Pay the balance of tax payable (if any) by using CP207
• Keep record and account book for 7 years

TAX INCENTIVE

• Malaysia has enacted a number of tax incentives to encourage particular forms of economic activity. Many tax incentives simply remove part or of the burden of the tax from business transactions. There are a number of tax incentives given to entrepreneurs to encourage business growth and development (For example: Pioneer Status, Investment Tax Allowance, Double Tax Deduction, Reinvestment Allowance)
• In Malaysia, tax incentives, both direct and indirect, are provided in the Promotion of Investment Act 1986, Income Tax Act 1967, Customs Act 1967, Sales Tax Act 2018, Excise Act 1976 and Free Zones Act 1990. These Acts cover investments in the manufacturing, agriculture, tourism (including hotel) and approved services sectors as well as R&D, training and environmental protection activities.

WITHHOLDING TAX DEDUCTION

• The Income Tax Act, 1967 provides that where a person is liable to make payment as listed below (other than income of non-resident public entertainers) to a non-resident person (NR payee), he shall deduct withholding tax at the prescribed rate from such payment and (whether such tax has been deducted or not) pay that tax to the Director General of Inland Revenue within one month after such payment has been paid or credited to the NR payee.
• All withholding tax payments (other than for non-resident public entertainers) must be made with the relevant payment forms, duly completed, together with copy of invoices issued by the NR payee and copy of payment documents as proof of date of payment /crediting to the NR payee.
• Please ensure that the forms are completed accurately furnishing the Malaysian tax reference number for the payer, payee as well as the payee’s country of origin.
• Where the payer fails to pay or pays withholding tax late (not within the period of one month after the date of payment / crediting to the NR payee), he is imposed an increase in tax of a sum equal to ten percent (10%) of the amount which he fails to pay is imposed.

EMPLOYMENT INCOME

Every expatriates and employees has the duty to file their Personal Income Tax (Form BE or Form M) on a yearly basis for their income earned and all other income derived from Malaysia.

Employment income subject to tax:-

• Salary, wages, bonus, director’s fee, commission, allowance, perquisite, gratuity, overtime payment, tips, compensation, Employees Share Option Scheme (ESOS), tax borne by employer, etc (item paid in cash or convertible to cash)
• Benefits-In-Kind from employers (cars, handphone, driver, maid, etc)
• Value of Living Accommodation provided by employer
• Employer’s contributions for employee made to an unapproved pension provident fund
• Compensation for loss of employment

Responsibility of employee:-

• Complete and submit Form e-BE or Form M via e-Filing. (Form BE is for Malaysians and expatriates who is regarded as residents while Form M is for non-resident status employees)
• Paying the income tax payable
• Keeping records for audit purposes

SOLE PROPRIETORSHIP/PARTNERSHIP

A sole proprietorship/partnership is required to file an annual income tax return (Form B or Form P) for their individual business income earned during the year.

Responsibility:-
a) Sole proprietor/Business partner:

• Complete and submit Form B (e-B) via e-Filing

b) Business partner:

• Completes Form P (e-P) and CP30 (Apportionment of partnership income)
• (Responsibility of the Managing Partner)
• Submit Form P via e-Filing (e-P)
• Inform in writing to LHDNM if partnership ceases operation or changes to sole proprietorship or becomes a limited company

c) To comply with the Notice of Installment Payment (CP500)
d) Keep business documents, records and accounts for 7 years

SERVICES

• Preparation of tax computation and submission of income tax file return (Form C) on a timely basis;
• To advice, prepare and submission of initial tax estimation (CP204);
• To advice, prepare and submission of 6th and 9th month’s revision of estimated tax payable (CP204A);
  Correspondence with IRB in the event of tax appeals;
• Providing timely reminders of deadlines;
• Application of tax incentives and claim for company allowance (eg. industrial building allowance, double deduction and reinvestment allowance)
• Preparation of tax computation and submission of income tax file return (Form B, Form BE, Form M, Form P) on a timely basis.

OTHER TAX SERVICES

• Applications of income tax file and employer number;
• Preparation and submission of Form EA and Form E;
• Preparation and remittance of withholding tax form;
• Application of tax clearance;
• Managing and assist in tax audit and investigation.
• Personal tax with biz income
• Application of income tax file number
• Reinvestment allowance
• Double deduction
• Draft tax computation for CP204A
• Appeal letter

HOW CAN WE HELP YOU

• Assist foreign investors in their investments in Malaysia
• Advise on setting up a new business in Malaysia
• Application for applicable licenses / approvals
• Advise on the appropriate tax incentives and regulatory requirements
• Advise on the preparation and submission of tax
• Assist applications to the relevant Ministries / Authorities for approval
• Coordinate and liaise with the relevant Authorities
• Provide update of tax incentives regulatory requirements