Day: August 26, 2022

  • Service Tax Policies (STP) on Digital Services

    Service Tax Policies (STP) on Digital Services

    STP No. 1/2022 dated 1 August 2022

    On August 1, 2022, the Royal Malaysian Customs Department announced the Service Tax Policy 1/2022 (only available in the Malay language) on the service tax exemption on providing digital payment services by local non-bank providers.

    This amendment came into effect on the first day of August 2022.

    This policy exempts digital payment services from the payment of service tax under Section 34(3)(a) of the Service Tax Act 2018 for the following local non-bank service providers (“LNBSP”)

    • Local non-bank payment instrument issuers;
    • Local non-bank merchant acquirers; and
    • Local non-bank payment system operators.

    The exemption is effective from 1 August 2022 to 31 July 2025.

    This exemption does not apply to foreign service providers or other digital services except for digital payment services rendered by the LNBSP mentioned above.

    139.1-Exemption-for-Digital-Payment-Services-by-Local-Non-Bank-Service-ProvidersDownload

    STP No. 10/2020 (Amendment No. 2) dated 1 August 2022

    In addition, the RMCD has published the Amendment to Service Tax Policy 10/2020 (Amendment No 2) (dated 1 August 2022) regarding Service Tax exemption on the provision of digital services connected to banking or financial services (only available in the Malay language).

    This amendment came into effect on the first day of August 2022. The Amendment includes the following:

    • the end date of the service tax exemption is from 1 January 2020 until 31 July 2025 concerning digital services related to banking/financial services provided by local service providers
    • in paragraph 4.1 of the Service Tax Policy, the word “and” has been replaced with the word “or.” The new paragraph is now read as follows: “Banks, investment banks, or any financial institution licenced under the Financial Services Act 2013 [Act 758], Islamic Financial Services Act 2013 [Act 759], the Labuan Financial Services and Securities Act 2010 [Act 704] or the Labuan Islamic Financial Services and Securities Act 2010 [Act 705].”
    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is therefore strictly at your own risk.

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  • Tax Incentive For Organising Conferences In Malaysia

    Tax Incentive For Organising Conferences In Malaysia

    Most of the time, a conference is a large meeting where researchers, academicians, and professionals can share their work and research in fields like medicine, law, science, engineering, technologies, business management, and so on.

    Since the year of assessment 1997, Malaysian organisers of conferences whose principal activities are to promote and run conferences have been given tax incentives if they bring in at least 500 foreign participants each year [Income Tax (Exemption) (No. 53) Order 2000].

    In Budget 2020, the government introduced tax incentives for qualifying persons whose principal activities are other than promoting or organising conferences. This is part of an effort to make Malaysia the best place for international conferences. These qualifying persons must bring at least 500 foreign people to conferences that they promote or organise every year [Income Tax (Exemption) (No.4) Order 2021].

    Consequently, the IRB published Public Ruling (PR) No. 2/2022 titled “Tax Incentive For Organising Conferences In Malaysia” on the 29th of July 2022 to explain the tax incentive that is now available.

    The Public Ruling outlines the tax incentive that was provided under:

    • The Income Tax (Exemption) (No. 53) Order 2000 [P.U. (A) 500]; and
    • The Income Tax (Exemption) (No.4) Order 2021 [P.U. (A) 195/2021].

    The Public Ruling also includes examples to exemplify the tax incentive.

    140.1-Tax-Incentive-For-Organising-Conferences-In-Malaysia-PR-No.-2_2022Download

    Income Tax (Exemption) (No.53) Order 2000 [P.U. (A) 500/2000]

    Effective from the year of assessment 1997 onwards, tax exemption is granted for eligible conference promoters:

    1. brought in at least five hundred (500) foreign participants to attend conferences held in Malaysia on the basis year for a year of assessment; and
    2. the exemption is on 100% of the statutory income derived from organising conferences held in Malaysia in the relevant year of assessment.

    Income Tax (Exemption) (No.4) Order 2021 [P.U. (A) 195/2021]

    Effective from the year of assessment 2020 until the year of assessment 2025, tax exemption is granted for eligible conference promoters who carry on business or activity other than business or activity of promoting and organising conferences in Malaysia, including the arranging of accommodation, tours and sightseeing for foreign participants:-

    1. need to bring in at least five hundred (500) foreign participants to attend conferences held in Malaysia on the basis year for a year of assessment; and
    2. the exemption granted is on 100% of the statutory income derived from organising conferences held in Malaysia in the relevant assessment year.
    140.2-Income-Tax-Exemption-No.4-Order-2021-P.U.-A-195_2021Download

    Other

    The income tax exemption will apply only if the qualifying person brings in at least 500 foreign participants in the YA.

    The PR reiterates that the exemption granted under P.U.(A) 500 or P.U.(A) 195 does not relieve the conference promoter or qualified person from the duty to submit any return, statement of accounts, or any other information as required under the ITA.

    It is required that a separate account be kept to track the revenue that is exempted according to both orders.

    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is therefore strictly at your own risk.

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  • Taxation Of Foreign Fund Management Company

    Taxation Of Foreign Fund Management Company

    Foreign Fund Management Companies in Malaysia

    A company that is incorporated in Malaysia and granted a licence under the Capital Markets and Services Act 2007 (Act 671) is considered to be a foreign fund management company.

    A foreign company incorporated for the exclusive purpose of providing fund management services to its customers is known as a foreign fund management company.

    To facilitate the establishment of fund management companies in Malaysia, the SC has issued the following instructions and documents:

    1. Guidelines on Islamic Fund Management ;
    2. Frequently Asked Questions Revised Guidelines on Islamic Fund Management and
    3. The Licensing Handbook.

    The Public Ruling (PR) No. 3/2022, entitled “Taxation of Foreign Fund Management Company,” was issued by the Inland Revenue Board (IRB) on July 29, 2022.

    This new Public Ruling with 21 pages takes the place of Public Ruling No. 7/2019, published on December 3, 2019.

    141.1-Taxation-Of-Foreign-Fund-Management-Company-PR-No.-3_2022Download

    The objective of the Public Ruling

    The purpose of this Public Ruling (PR) is to explain the tax treatment of revenue received by a foreign fund management company that provides fund management services to foreign and local investors.

    This PR does not apply to a foreign fund management company if the company issues, offers, or makes an invitation to subscribe or purchase units of conventional unit trust funds.

    This PR takes into consideration all of the laws that are currently in effect as of the day that this PR was released.

    The PR was revised to reflect the income tax exemptions granted under:

    • Income Tax (Exemption) (No. 7) Order 2021
    141.2-Income-Tax-Exemption-No.-7-Order-2021-PUA-283Download
    • Income Tax (Exemption) (No. 8) Order 2021
    141.3-Income-Tax-Exemption-No.-8-Order-2021-PU-A-284Download
    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is therefore strictly at your own risk.

    Keep in touch with us so that you can receive timely updates |

    要获得即时更新，请与我们保持联系

    1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

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  • WHT Form Submission & Withholding Tax (WHT) Payment of Small Value for Transactions That Recurring

    WHT Form Submission & Withholding Tax (WHT) Payment of Small Value for Transactions That Recurring

    The Inland Revenue Board of Malaysia (IRBM) has given its approval to the CTIM’s suggestion to submit withholding tax (WHT) forms and the payment of WHT of Small Value for transactions that occur repeatedly less cumbersome administratively and less expensive to comply with.

    An individual or body resident in Malaysia or conducting business in Malaysia that is required to pay WHT under Section 109 or Section 109B of the Income Tax Act 1967 and that does not exceed RM500 per transaction for transactions that recur may submit the WHT form and pay the WHT as follows, as stated in the Rules that were attached to the letter that IRBM addressed to CTIM on August 12, 2022:

    The above will take effect from August 2022.

    IRBM is now working on preparing the specific WHT forms that will be needed for the purposes above.

    185.1-Deferment-of-payments-of-small-value-withholding-tax-for-recurring-transactions-in-respect-of-royalty-interest-and-special-classes-of-income-1Download

    Disclaimer: The information in this article should not be construed as legal advice, and we assume no responsibility or liability for any decisions made or actions taken from this article should not be construed as legal advice, and we assume no responsibility or liability for decisions made or actions taken as a result of reading this article. ‍

    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is therefore strictly at your own risk.

    Keep in touch with us so that you can receive timely updates |

    要获得即时更新，请与我们保持联系

    1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

    4. Blog ✍ https://lnkd.in/e-Pu8_G 5. Google ✍ https://lnkd.in/ehZE6mxy

    6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/

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