Construction Company’s Management Fee Deduction Rejected by SCIT
CMSB v e Director General Inland Revenue This case involves a tax dispute between a taxpayer company (CMSB) and the Inland Revenue Board (IRB) over the deductibility of management fees for two construction projects. Background Facts CMSB claimed deductions for management fees paid to a related company (CIWE) for two dam construction projects. IRB disallowed […]
Income Tax (Relocation of Manufacturing Business Incentive Scheme) Rules 2023
The Ministry of Finance has gazetted the Income Tax (Relocation of Manufacturing Business Incentive Scheme) Rules 2023 which provide tax incentives for manufacturing companies relocating to Malaysia. The scheme is deemed to have taken effect from the year of assessment 2021. It applies to new manufacturing companies relocating facilities or setting up new operations in […]
Income Tax (Exemption) Order 2023: 5-year Tax Exemption for Manufacturers Relocating to Malaysia
The Income Tax (Exemption) Order 2023, which is deemed to have taken effect from the year of assessment 2021, introduces a tax exemption for existing manufacturing companies that relocate their operations to Malaysia. To qualify, companies must: The tax exemption is on statutory income derived from qualifying new manufacturing activities. It is equivalent to the […]
Deduct or Not Deduct? – The Murky Tax Waters Around Bumiputera Quota Release Payments (Discount)
This involves two court cases where property development companies claimed a tax deduction on payments made to the state housing authority to obtain the release of unsold Bumiputera quota units to be sold to non-Bumiputera buyers. Case No 1: Ketua Pengarah Hasil Dalam Negeri v Taman Equine (M) Sdn Bhd Case No 2: Ketua Pengarah […]
Luxury Apartment Developer Fails to Prove Gains are Capital, Taxed as Trading Income Instead
BEVERLY TOWER DEVELOPMENT SDN BHD v. KETUA PENGARAH HASIL DALAM NEGERI High Court Malaya, Kuala Lumpur 10 August 2022 This was an appeal by Beverly Tower Development Sdn Bhd against the decision of the Special Commissioners of Income Tax (“SCIT”), which held that the gains from the disposal of 50 apartment units were trading receipts […]
Deduction for Expenses in relation to Listing on Main, ACE Market or LEAP Market
Effective from the year of assessment 2018 until the year of assessment 2023, the Minister makes the Income Tax (Deduction for Expenses in relation to Listing on the Main Market, Access, Certainty, Efficiency (ACE) Market or Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia Securities Berhad) Rules 2023 [PUA 235_2023] under paragraph 154(1)(bb) of […]
