FAQ on 2% WHT deducted from payment by payer companies to agents, dealers, or distributors
Section 107D was incorporated into the Income Tax Act of 1967 (ITA) on January 1, 2022. It says that companies that make payments to agents, dealers, or distributors due to sales, transactions, or schemes must withhold tax at 2% of the gross amount. This applies to payments made to agents, dealers, or distributors who are individuals and […]
Registration of a Labuan Trust or Labuan Special Trust
A Labuan Trust has the same meaning assigned to it by Part II of the Labuan Trusts Act 1996 (LTA). What is trust? An agreement through which a party (an individual or a settlor) gives the right to another party (the trustee) to manage various assets and properties in the name of a beneficiary (or […]
Labuan Companies (Amendment) Regulations 2022
In Labuan, offshore and foreign offshore companies can be incorporated, registered, and administered under the Labuan Companies Act of 1990. Labuan companies are permitted to do business in Malaysian currency with a Malaysian resident and to conduct petroleum activities in Malaysia as of March 20, 1997, under the Labuan Companies (Amendment) Act 1996. The sponsors […]
Mallalieu v Drummond: Different treatments for ‘Uniform’, ‘Costume’ and an ‘Everyday Wardrobe’
If you’re a businessman, you shouldn’t be able to deduct money spent on the clothes you wear every day. This is still the case even if formal attire is mandated by some other factor, such as the regulations of a professional organisation. No deduction is allowed from trading profits for the costs of clothing that […]
Characteristics of the Tax System
The better way to understand taxation’s meaning is by examining taxation’s characteristics. 1. An Obligatory Payment The payment of taxes is voluntary for certain people. Before any individual is obligated to make tax payments, they must satisfy various prerequisite conditions. Only those individuals who are considered to be “taxable persons” are required to make tax […]
The Badges of Trade: Frequency of Transactions
Even if a single transaction could be considered a trade, the idea of trading is more likely to be implied when a lot of transactions are done in a planned way. When different sets of actions, none of which are traded on their own, are done on various occasions that aren’t too far apart, the […]
The Badges of Trade: Motive/Intention of Taxpayer
ALF Properties Sdn Bhd v Ketua Pengarah Jabatan Hasil Dalam Negeri Civil Appeal No W-01-203-97. Appeal from the High Court, Kuala Lumpur – Income Tax Appeal No R1-14-13-95. Court of Appeal, Putrajaya. Judgment was delivered on 14 May 2005 and 18 August 2005 1. The appellants, a private limited company, were incorporated on 8 August […]
The Badges of Trade: Motive/Intention of Taxpayer – Bukit Yew
High Court Malaya, Kuala Lumpur Harun Hashim J [Tax Appeal No. A3/83] 6 February 1987 JUDGMENT Harun J: This is an appeal from the Special Commissioners of Income Tax against their decision to confirm the additional assessment raised by the Revenue in respect of income tax for the year of assessment 1980. The agreed statement […]
The Principles Of A Good Tax System
The primary objective of the tax system was to generate TAX revenue. Tax revenue is vital for a developing country to meet its needs and provide essential public services. Therefore, how a country’s tax system is to be set up should first and foremost take into account its own needs, both in terms of helping […]
Is Income Received as Compensation Subject to Taxation?
Income Connotes a Periodical Monetary Return “coming in” with some sort of Regularity. Bombay High Court The Commissioner Of Income Tax vs Shaw, Wallace And Co. on 14 March 1932 Equivalent citations: (1932) 34 BOMLR 1033 Author: G Lowndes Bench: Blanesburgh, Tomlin, G Lowndes JUDGMENT George Lowndes, J. 1. This is an appeal from a […]
