Form C YA 2022 – Transfer Pricing Aspects of Business Restructurings
Recent changes were made to Form C by the Inland Revenue Board in preparation for the YA 2022. One of the most critical changes is for those businesses participating in transfer pricing arrangements. As a result, the disclosure items have been significantly expanded to cover new areas. These new areas include stating the characterisation of your company by reference to […]
Whether the 8 Hours of Work Inclusive or Exclusive of Meal Breaks?
Employment Act 1955 s.60A(1) of the Employment Act 1955 reads: Except as hereinafter provided, an employee shall not be required under his contract of service to work – Provided that – Whether the 8 hours of work is Inclusive or Exclusive of meal breaks was discussed in Toong Fong Omnibus Co. Bhd. v Transport Workers […]
Form C YA 2022 – Characterisation of Entities for Transfer Pricing Purposes: Service Activities
Recent changes were made to Form C by the Inland Revenue Board in preparation for the YA 2022. One of the most critical changes is for those businesses participating in transfer pricing arrangements. As a result, the disclosure items have been significantly expanded to cover new areas. These new areas include stating the characterisation of your company by reference to […]
“Hours of Work” and “Normal Hours of Work”
There is a significant difference between the terms “hours of work” and “normal hours of work”, and it is essential to make this distinction. Section 60A(9) defines “hours of work” as the time during which an employee is at the employer’s disposal and is not free to dispose of his own time and movements. “Normal […]
Form C YA 2022 – Characterisation of Entities for Transfer Pricing Purposes: Distribution Activities
Functional Analysis (“FAR”) The necessity to carry out a Functional Analysis, which determines whether controlled and uncontrolled transactions are equivalent, is an essential part of the Arm’s Length Principle. This functional analysis aims to identify and compare the economically relevant activities and responsibilities (i.e. Functions) that were carried out by the parties to the transaction, […]
Form C YA 2022 – Characterisation of Entities for TP Purposes: Manufacturing Activities
Recent changes were made to Form C by the Inland Revenue Board in preparation for the YA 2022. One of the most important changes is for those businesses participating in transfer pricing arrangements. As a result, the disclosure items have been significantly expanded to cover new areas. These new areas include, among other things, stating the characterisation of your company […]
Double Tax Deduction for the Cost of Detection Test of Covid-2019
In the exercise of the powers conferred by paragraph 154(1)(b) read together with paragraph 33(1)(d) of the Income Tax Act 1967 [Act 53], the Minister, on September 9, 2022, gazetted the Income Tax (Deduction for Expenses in relation to the Cost of Detection Test of Coronavirus Disease 2019 (COVID-19) for Employees) (Amendment) Rules 2022 (P.U. […]
Restriction on Deductibility of Interest (S.140C, ITA 1967)
History In addition to the basic anti-avoidance measures that were already in place, Malaysia began enforcing the Thin Capitalisation restrictions that are outlined in section 140A of the Income Tax Act 1967 (“ITA”) on January 1, 2009. Under section 140A, if the Director General of Inland Revenue (“DGIR”) believes that the value or aggregate of […]
Foreign Account Tax Compliance Act (FATCA)
Understanding the laws and regulations of FATCA The global tax structure is being altered as a result of globalisation, rising economies, and more regulation, which is presenting difficult-to-overcome issues for financial institutions located all over the world. Changes of a fundamental structural nature have been made to both the Foreign Account Tax Compliance Act (FATCA) […]
Income Tax (Restriction on Deductibility of Interest) (Amendment) Rules 2022
In the exercise of the powers conferred by paragraph 154(1)(ed) of the Income Tax Act 1967 [Act 53], the Minister, on January 31, 2022, gazetted the Income Tax (Restriction on Deductibility of Interest) (Amendment) Rules 2022 (P.U. (A) 27/2022) (“Amendment Rules“) to amend the Income Tax (Restriction on Deductibility of Interest) Rules 2019 [P.U. (A) […]
