Are Blackpink obliged to pay tax while performing in Malaysia?

Withholding Tax: Public Entertainer  Do you know what Blackpink, Ariana Grande, and Jacky Cheung have in common when they hold their concert tours in Malaysia?   The answer is their income would be subject to withholding tax (WHT) pursuant to section (s.) 109A of the Income Tax Act (ITA) 1967. In Malaysia, public entertainers who… Continue reading Are Blackpink obliged to pay tax while performing in Malaysia?

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Avoid being IRBM’s target: Why is capital statement important?

Overview of Capital Statement of Individual Tax Payers  Capital Statement is requested by the Inland Revenue Board of Malaysia (IRBM) during a tax investigation to assess if an individual is able to substantiate his or her spending with the income generated. It is a combination of balance sheets and profit and loss accounts of an… Continue reading Avoid being IRBM’s target: Why is capital statement important?

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How to utilize business losses to save tax?

Business Loss Current year adjusted business losses can be used to set off against other income from the aggregate income for that year of assessment in ascertaining its total income. The other types of income such as other businesses, rental income, interest income, employment income, etc. After offsetting the current year losses against the other… Continue reading How to utilize business losses to save tax?

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What should an employer do after an employee leaves?

Personal Tax Clearance Letter  On top of reporting obligations under the Income Tax Act 1967, employers are also responsible for informing the Malaysian Inland Revenue Board (IRB) of an employee’s cessation of employment, retirement, death, or departure from Malaysia for a period exceeding 3 months so that the tax clearance letter (TCL) can be issued. The TCL notifies the employer… Continue reading What should an employer do after an employee leaves?

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Loss of Employment? Is the compensation taxable?

Loss of Employment? Do you know you can get Tax Treatment?  While the recession hasn’t “officially” arrived, Malaysians are still feeling the heat with the rate of retrenchments and budget cuts due to the falling ringgit. If you are unfortunate enough to be laid off and receive the compensation, will this income be taxed? In this… Continue reading Loss of Employment? Is the compensation taxable?

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Who should pay Withholding Tax?

Withholding Tax on Foreign Service Provider in Malaysia As business owners, we want the best for our businesses. Therefore, sometimes we may enlist the services of foreign providers who are known to be the cream of the crop in their respective industries. When we make payments to these non-resident service providers, something called “withholding tax”… Continue reading Who should pay Withholding Tax?

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What if I fail to pay Withholding Tax?

Consequences of Not Remitting Withholding Tax   When the withholding tax (WHT) is not appropriately deducted and remitted to the Malaysian Inland Revenue Board (HASiL), serious consequences will follow. What Constitutes Non-Compliance? The payer fails to pay WHT at the prescribed rate (whether deducted or not). The payer pays WHT late (not within the period… Continue reading What if I fail to pay Withholding Tax?

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