Taxation

Increasing tax compliance obligations in Malaysia has added to the drain on management time, while a more investigative approach by the tax authorities recently have also resulted in harsher penalties for non-compliance. Put all these factors together and the tax burden on businesses can be much larger than what many would expect.

Our clients have relied on our Tax Compliance Team to provide assistance in the following areas.

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1. Corporations

   • Tax compliance

   • Filing of annual tax return

   • Tax incentive applications

   • Tax planning and consultancy

   • Stamp duty planning

   • Overseas income repatriation planning

   • Transfer pricing services

   • International tax services

   • Offshore tax haven and financial centre services

2. Individuals

   • Tax compliance

   • Tax audit

3. Employees

   • Directors remuneration and benefit package

   • Employees remuneration and benefit package

4. Expatriates/ Foreign investors and contractors

   • Tax compliance

   • Remuneration package planning

   • Withholding tax services

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Our tax consultants have the necessary experience and knowledge to deal with tax audit and investigation cases. Most clients face one or more of the following tax concerns:

• They are (or are about to be) the subject of a tax audit or investigation.

• They have received a request from the tax authorities for a site visit.

• They have received a request from the tax authorities for a meeting.

• They have been asked to provide business records.

• They have received an estimated tax or compound for tax default.

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Our tax consultants could assist by:

• Ensuring the client’s relationship with the tax authorities is as good as it can be.

• Negotiating the best possible outcome to any tax dispute or query.

• Defending all types of tax enquiries on behalf of client.

• Advising on tax payer rights, information rights, interest and penalties.

• Tax appeals, tribunals and litigation support.

• Assisting client with voluntary disclosures.

In Malaysia, stamp duty is a tax imposed on documents or written instruments specifies in the First Schedule of Stamp Duty Act 1949. Documents or instruments must be duly stamped within 30 days of its execution if executed within Malaysia. In the case that the instrument is executed outside Malaysia, it must be stamped within 30 days after it has been first received in Malaysia. Our team will assist in making the submission and liaison to obtain the stamping fee payable to Malaysia government.

Tax Clearance Letter (Surat Penyelesaian Cukai, SPC) is a certificate or letter from IRBM that will show any tax owe by a taxpayer. In Malaysia, a taxpayer needs to apply for a Tax Clearance Letter if he/she is retiring, leaving employment at the end of a contract, resigning, terminated from his/her employment, or leaving Malaysia for a period exceeding three months. The salary will be released upon receiving the Tax Clearance Letter from IRBM. In addition, when a taxpayer dies, their next of kin needs to apply Tax Clearance Letter. The Tax Clearance Letter applies to both Malaysians and expatriates or foreign Workers.

In Malaysia, a Certificate of Residence (COR) is an official document issued by Inland Revenue Board of Malaysia (IRBM) to confirm that the taxpayer is resident in Malaysia for tax purposes. The issuance of COR is to enable the taxpayer [that is tax residence in Malaysia] to get the benefit of the Double Taxation Agreement (DTA), to avoid being tax twice on the same income by the treaty countries. The validity period of a COR is 12 months from the endorsement date and the application of COR should be made when the current COR has expired, or when there is a request made by the client from the treaty country.

Under the Service Tax Act 2018 (which takes effect on Sep 1, 2018), Service Tax is a consumption tax levied on taxable services where the rate of service tax stands at 6%. Our consultants will be able to assist with the following:

• SST planning and preparation

• SST Malaysia registration

• Preparation and submission of SST return

• Sales tax rate evaluation

• SST compliance review and appeal

• Post SST support and consultation