Notification of Functions of Company Director and Director’s Representative in MyTax for Submission
Starting from 1 January 2023, taxpayers with the role of Company Director in MyTax can appoint representatives online. The appointed representative must possess a Tax Identification Number (TIN) and an Individual Digital Certificate. The Inland Revenue Board of Malaysia (LHDNM) reserves the right to obtain a letter of appointment for the representative, which should be […]
Income Tax (Exemption) (No. 2) Order 2023: Existing Principal Hub
Here is an announcement covering the critical information from the Income Tax (Exemption) (No. 2) Order 2023 [P.U. (A) 251/2023], which is deemed to have effect from the year of assessment 2019. A principal hub referred to under this Order is a company which— The government has introduced a tax exemption incentive for principal hubs […]
Flat 15% Tax to Draw Global Talent in Approved Company
IN exercise of the powers conferred by paragraph 154(1)(b), read together with paragraph 2 of Part XVIII of Schedule 1 to the Income Tax Act 1967 [Act 53], the Minister makes the Income Tax (For an Individual Resident Who is Not A Citizen and Holds C Suite Position in An Approved Company) Rules 2023 [P.U. […]
TRSB v KPHDN: Taxpayer’s Tax Forms Were Right, Taxman’s Penalty Was Wrong
Here is an analysis of the TR Sdn Bhd (TRSB) tax case in October 2022: Introductory Paragraph This was an appeal by TR Sdn Bhd (“Appellant”) against a decision of the Special Commissioners of Income Tax (“SCIT”), which upheld penalties imposed by the Inland Revenue Board (“IRB”) under Section 112(3) of the Income Tax Act […]
What Happens if Illness Strikes on Your Day Off?
Section 59 of the Employment Act is read as below: (1) Every employee shall be allowed in each week a rest day of one whole day as may. be determined from time to time by the employer, and where an employee is allowed more than one rest day in a week the last of such […]
Clinic and Taxman Lock Horns Over Expense Deductions
A clinic wanted to reduce some of their expenses on their tax return. But the taxman looked deeper into some of the expenses, including: and didn’t seem to agree. Instead, the clinic said these expenses were related to caring for patients and selling healthcare products and were, therefore, very important expenses for the business. However, […]
Sales Incentives Ruled Business Expenses, Not Entertainment
Here is an analysis of the Khind-Mistral (Borneo) Sdn Bhd tax case: Introductory Paragraph This is an income tax case involving the deductibility of sales incentive trips provided by Khind-Mistral (Borneo) Sdn Bhd (“Company”) to its dealers who achieved sales targets. The trips were claimed as deductible expenses under Section 33(1) of the Income Tax […]
Navigating the Rules: Traveling Expenses and Tax Deductions
Introduction The deductibility of travel expenses has been a common issue disputed between taxpayers and tax authorities. Several landmark UK tax cases have established important principles that guide the resolution of such disputes in Malaysia as well. Revenue Law Under Malaysian tax law, expenses are deductible under Section 33(1) if they are wholly and exclusively […]
Initial Financing Costs Sink Manufacturers’ Tax Appeal
PM v DGIR, PR v DGIR, PI v DGIR 20.1.2020 The petitioners are called PM, PR, and PI, which seem to be abbreviations for company names. Obtaining financing can be costly for businesses, but can those costs be deducted against taxable income? Three manufacturing companies found out that the answer is often no, as tax […]
10 Reasons to Learn Finance
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