Separate Source & Separate Account for Para 7 of the P.U. (A) 161/2019, 162/2019 and 163/2019
Before we get into the details of paragraph 7, let’s first understand the context of these income tax exemption orders. The orders, namely P.U. (A) 161/2019, 162/2019, and 163/2019, were gazetted on 7th June 2019. They provide income tax exemptions for companies that promote exporting certain manufactured products and agricultural produce. Now, let’s focus on […]
MIA Webinar Series: Interview For Approved Company Auditors
I am honoured to be one of the facilitators for the Today Malaysian Institute of Accountants (MIA) Webinar Series: Interview For Approved Company Auditors. It is a privilege to contribute to this important event and engage with professionals in the accounting field. I am committed to delivering a valuable and informative session for all participants. […]
Foreign income received in Malaysia which is exempted from tax from 1.1.2022 until 31.12.2026
Effective 1 January 2022, the tax exemption for foreign-sourced income (“FSI”) received by Malaysian residents provided for under Para 28 was removed following the Budget 2022 made on 29 October 2021. Hence, Foreign Income received in Malaysia which is eligible for the tax exemptions are as follows: Below is a summary of the exemption of […]
Foreign Source Income: Meaning of “Received in Malaysia”
Effective 1 January 2022, the tax exemption for foreign-sourced income (“FSI”) received by Malaysian residents provided for under Para 28 was removed following the Budget 2022 made on 29 October 2021. The removal of the tax exemption for foreign-sourced income received by Malaysian residents implies that this type of income will be taxable in Malaysia, […]
New Requirements for Tax Exemption on Foreign Dividend Income in Malaysia
Effective 1 January 2022, the tax exemption for foreign-sourced income (“FSI”) received by Malaysian residents provided for under Para 28 was removed following the Budget 2022 made on 29 October 2021. Hence, Foreign Income received in Malaysia which is eligible for the tax exemptions are as follows: The exemption in paragraph 1.4(a) does not apply […]
Changes to Tax Exemption for Foreign-Sourced Dividend Income in Malaysia
Summary: This article discusses the removal of tax exemption for foreign-sourced income received by Malaysian residents, effective January 1, 2022, as well as the new conditions for tax exemption on foreign dividend income received in Malaysia. The article also covers the additional requirement for tax exemption announced by the Malaysian Inland Revenue Board on December […]
Tax Exemption on Foreign Dividend Income Received in Malaysia: Requirements and Conditions
Summary: The Malaysian government removed the tax exemption for foreign-sourced income (FSI) received by Malaysian residents on January 1, 2022, except for foreign dividend income received in Malaysia by a resident company, resident LLP and resident individual in relation to a partnership business in Malaysia. However, an additional requirement was announced on December 29, 2022, […]
“Economic Substantive”: Amendments to the tax return may be required if the taxpayer fails to comply
Effective 1 January 2022, the tax exemption for foreign-sourced income (“FSI”) received by Malaysian residents provided for under Para 28 was removed following the Budget 2022 made on 29 October 2021. On December 29, 2022, the Malaysian Inland Revenue Board (IRB) issued a press release (available only in Bahasa Malaysia) announcing an additional requirement for […]
Economic Substance Requirements for Foreign Dividend Income
On December 29, 2022, the Malaysian Inland Revenue Board (IRB) issued a press release (available only in Bahasa Malaysia) announcing an additional requirement for tax exemption on foreign-source dividend income received in Malaysia by eligible persons. In accordance with this additional requirement, amendments have been made to the Guidelines for tax treatment in relation to […]
Qualifying Plant Allowances for Computers and IT Equipment and Cost of Prov. of Computer Software
The Inland Revenue Board of Malaysia (IRBM) has issued their responses dated 16 February 2023 to CTIM members’ issues dated 18 January 2023 on the following: – In this article, we will see IRBM’s response regarding item no. 2, the Qualifying Plant Allowances for Computers and Information Technology Equipment, and Cost of Provision of Computer […]
