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Special Programme for Voluntary Disclosure (Updates: Deadline extended to 30 September 2019)
381,979 taxpayers had voluntarily disclosed their previously undeclared income to the Inland Revenue Board (IRB) under the Special...
Apr 10, 20192 min read
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...
Apr 4, 20193 min read
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...
Mar 8, 20192 min read
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 21, 20188 min read
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...
Nov 19, 20182 min read
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,...
Oct 5, 20188 min read
Bitcoin and Tax Implications
Are gains from Bitcoin (and other virtual currencies / cryptocurrencies) taxable? The Inland Revenue Board Malaysia (IRBM) has not issued...
Jun 14, 20184 min read
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 31, 20182 min read
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...
May 9, 20182 min read
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...
Apr 9, 20183 min read
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...
Mar 5, 20182 min read
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...
Jan 8, 20183 min read
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 29, 20173 min read
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...
Dec 13, 20171 min read
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...
Nov 1, 20173 min read
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...
Oct 27, 20172 min read
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...
Jul 12, 20172 min read
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...
Apr 12, 20172 min read
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...
Feb 20, 20171 min read
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....
Jan 20, 20172 min read
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