Earnings Stripping Rules (Thin Capitalisation Rules)
S.140C has been added to Income Tax Act 1967 to restrict interest deduction where an entity is excessively debt funded by a related...
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- Mar 8, 2019
- 2 min
Tax Exemption for Rental Income from Residential Property (YA 2018)
It was proposed in Budget 2018, which was tabled in parliament on 27 October 2017: i. 50% tax exemption will be granted on rental income...
- Nov 21, 2018
- 8 min
Benefits in Kind (BIK)
Generally, non-cash benefits (e.g. accommodation or motorcars) provided by employers to their employees are treated as income of the...
- Nov 19, 2018
- 2 min
Voluntary Disclosure of Under Declared Tax
In an effort to boost revenue for the country, the Inland Revenue Board is offering a special tax amnesty called the Special Programme...
- Oct 5, 2018
- 8 min
Payments that are subject to Withholding Tax (WHT)
Generally, any person making certain payments such as royalties, interest, contract, payments, remuneration to a public entertainer,...
- Jun 14, 2018
- 4 min
Bitcoin and Tax Implications
Are gains from Bitcoin (and other virtual currencies / cryptocurrencies) taxable? The Inland Revenue Board Malaysia (IRBM) has not issued...
- May 31, 2018
- 2 min
GST Rate will be revised from 6% to 0%
The newly elected government of Malaysia has announced the reduction of the Goods & Services Tax (GST) rate from 6% to 0% effective 1...
- May 9, 2018
- 2 min
Advance payments are taxable!
Is business income taxed on accrued or receipt basis? Prior to year of assessment 2016, it was a generally accepted principle that...
- Apr 9, 2018
- 3 min
Online advertising services provided by non-residents are subject to withholding tax
The Inland Revenue Board of Malaysia (IRBM) has issued a practice note entitled “Practice Note 1/2018 – Tax Treatment on Digital...
- Mar 5, 2018
- 2 min
Accrued Director Fee and Tax Treatment
Prior to year of assessment 2015, directors fees are taxable in the hands of the directors when they are paid. However, with Section...
- Jan 8, 2018
- 3 min
IRB knows how much you have in that offshore bank account (AEOI explained in layman’s terms)
Key points: a. Malaysia is a participating country of AEOI System (Automatic Exchange of Information) initiated by the OECD. b. Malaysian...
- Dec 29, 2017
- 3 min
Tax Deductibility of Professional Indemnity Insurance Premium
Key points of this update: 1. Insurance premium paid for professional indemnity insurance is tax deductible if the professional carries...
- Dec 13, 2017
- 1 min
Clarifications on effective date of Income Tax (Exemption) (No. 9) Order 2017
The Inland Revenue Board Malaysia (IRBM) has issued Practice Note No. 3/2017 to clarify the effective date of the abovementioned...
- Nov 1, 2017
- 3 min
RM37,000 Fine for Failure to Keep Business Record
An owner of a car accessories and car parts company was fined RM37,000 by the magistrate’s court for 6 counts of failing to keep his...
- Oct 27, 2017
- 2 min
U-turn on withholding tax for service fees paid to non-residents (Income Tax (Exemption) (No. 9) Ord
The Ministry of Finance has gazetted the latest exemption order referred to as “Income Tax (Exemption) (No. 9) ) Order 2017”. Under the...
- Jul 12, 2017
- 2 min
Withholding tax for service fee payments made to non-residents (Practice Notes from IRBM)
1. The Inland Revenue Board of Malaysia (IRBM) has, on 23 June 2017, issued Practice Note No. 1/2017: Amendment of Section 15A of the...
- Apr 12, 2017
- 2 min
100% Penalty on Defaulted Tax
Starting from 1 Jan 2018, the Inland Revenue Board Malaysia (IRBM) will impose a 100% penalty on the tax of individuals and companies...
- Feb 20, 2017
- 1 min
Alert: RMCD aims to collect RM3.0 billion of unpaid GST by this year
The Royal Malaysian Customs Department (RMCD) has set a new target to collect RM3.0 billion in Goods and Services Tax (GST) this year (up...
- Jan 20, 2017
- 2 min
Amendments to withholding tax regulations passed
Finance Act 2017 has been passed and gazetted. Some of the changes that could affect withholding tax requirements are highlighted here....
- Dec 20, 2016
- 3 min
Expanding scope of withholding tax (WHT)
There are some impending changes to the withholding tax regulations that will affect your business. Please pay close attention to this...
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