As we approach tax season, many business owners and finance teams ask: “Can we deduct tax agent and statutory filing fees in the current year of assessment?” Let’s clear up the confusion. Tax Deduction Rule: “Incurred Basis” Applies Under Malaysian tax law, expenses are only deductible when they are incurred — not when they relate… Continue reading When to Claim Tax Agent & Statutory Filing Fees: Avoid Common Mistakes in YA 2024
Category: Taxation
Understanding Tax Treatment for Specialist Doctors in Private Hospitals-IRBM Guidelines
The Inland Revenue Board of Malaysia (IRBM) has issued specific guidance on how income earned by Specialist Doctors in private hospitals should be taxed. According to the IRBM Guidelines dated 16 March 2022, titled “Garis Panduan Layanan Cukai Ke Atas Pendapatan Pengamal Perubatan (Doktor Pakar) Di Hospital Swasta Sama Ada Ditaksir Di Bawah Individu Atau… Continue reading Understanding Tax Treatment for Specialist Doctors in Private Hospitals-IRBM Guidelines
Understanding Tax Penalties in Malaysia: A Comprehensive Guide
In Malaysia, the Inland Revenue Board (LHDN) enforces strict tax compliance to ensure the integrity of the national tax system. Non-compliance with tax obligations can lead to significant penalties, including fines, imprisonment, or both. This guide outlines the various tax offences and corresponding penalties to help taxpayers stay informed and compliant. 1. Failure to Furnish… Continue reading Understanding Tax Penalties in Malaysia: A Comprehensive Guide
Tax Quick Guide: Forest City Special Financial Zone Tax Incentive
Introduction of Forest City Forest City is an integrated residential development and private town located in Iskandar Puteri, Johor, Malaysia. It is situated in the southwestern part of Johor Bahru District, the second largest district in Malaysia by population. Forest City, with its combination of a duty-free island within a special financial zone, presents a… Continue reading Tax Quick Guide: Forest City Special Financial Zone Tax Incentive
Are you also STRUGGLING with these Tax Issues?
Five Common Tax Issues Taxpayers have many questions pertaining to the numerous tax and non-tax initiatives raised over time. Among those questions, today we will take a look at the five most common ones asked by taxpayers. Are grants received taxable? Generally, taxpayers are exempted from tax in respect of income received in relation to… Continue reading Are you also STRUGGLING with these Tax Issues?
Are F&B operators required to charge Service Tax?
Service Tax: Food and Beverage Did you know? Food and beverage (F&B) operators who have reached the prescribed threshold of having a total turnover in excess of RM1,500,000 for a period of 12 months must be registered under the Service Tax Act 2018, and they must charge service tax on the provision of taxable services… Continue reading Are F&B operators required to charge Service Tax?
Is the compensation for loss of employment taxable?
Tax Treatment of Compensation for Loss of Employment Picture this scenario:You have been happily employed at ABC Sdn. Bhd. for five years. However, the company has fallen on hard times due to the pandemic. As a consequence, your boss has decided to cease operations and close down the company. You were given a sum of… Continue reading Is the compensation for loss of employment taxable?
Is foreign-source income taxable in Malaysia?
The Taxability of Foreign-Source Income Is foreign-source income (FSI) taxable in Malaysia? Malaysia adopts the territorial principle of taxation where income accruing in or derived from Malaysia or received in Malaysia from outside Malaysia shall be chargeable to tax for that year of assessment (YA) in Malaysia pursuant to Section 3 of the Income Tax… Continue reading Is foreign-source income taxable in Malaysia?
What if I made a mistake on income tax return form?
Amending the Individual Income Tax Return Form Imagine this: you’re filing your taxes, and right after you click that submit button—oh no—you see an extra zero keyed in, or you could have missed out on some tax reliefs you were actually entitled to. You click away on the LHDN website in a frenzy, only to… Continue reading What if I made a mistake on income tax return form?
Is your business at risk of non-compliance?
Overview of Transfer Pricing Transfer pricing generally refers to the intercompany pricing arrangements for the transfer of goods, services, and intangibles between related or associated parties. In an ideal scenario, the transfer price should be the same as the prevailing market price. However, business transactions between associated parties may not always reflect the dynamics of… Continue reading Is your business at risk of non-compliance?