Tax Strategies for Businesses in Malaysia: Deciphering Malaysia’s Tax Regime
Introduction: Malaysia’s tax landscape is undergoing significant changes, and businesses operating here must adapt to these developments. Whether you’re an established business or considering entering the Malaysian market, understanding these tax intricacies is crucial for optimising your financial strategy. Key Highlights of Tax Planning in Malaysia 1. Entity Selection and Business Operations: Choosing the right […]
HASiL Revised Operational Guideline on Special Voluntary Disclosure Programme 2.0
HASiL – Operational Guideline 2/2023 on Special Voluntary Disclosure Programme 2.0 (Amended) dated 22 August 2023 replaces the Guideline on SVDP 2.0 dated 2 June 2023. The key difference between Guideline 2/2023 on Special Voluntary Disclosure Programme 2.0 (Amended) dated 22 August 2023 and the previous Guideline on SVDP 2.0 dated 2 June 2023 is […]
Are You an Employee or an Independent Contractor? Understanding the Legal Distinction
In a recent legal battle that made its way to the High Court, a multinational company found itself at the centre of a critical question: Are certain individuals rightfully classified as employees, or should they be considered independent contractors? The outcome of this case has far-reaching implications for the company involved and businesses that engage […]
Landmark Ruling: Compulsory Acquisition Compensation Exempt from Income Tax
Introduction: In a historic decision, the Federal Court of Malaysia has ruled that compensation received for properties or land forcefully acquired by the government should not be subject to income tax. This landmark ruling marks the first time a provision of the Income Tax Act has been struck down for violating the Federal Constitution. Let’s […]
Entering Employment in Malaysia: A Simple Guide for Employers and Employees
Introduction: Entering into an employment relationship in Malaysia involves a series of considerations, from contract terms to probationary periods and legal requirements. Whether you’re an employer looking to hire or an employee seeking clarity on your rights, understanding the basics is crucial. This article explores the essentials of the employment landscape in Malaysia, offering insights […]
Tax and Duty Implications for Exporters: Use of New Code for Export of Finished Goods
The notification from the Royal Malaysian Customs Department (RMCD), dated 24 May 2023, is of utmost importance for companies engaged in exporting activities. Starting from 1 June 2023, these companies are mandated to use the code “XE – EXPORT FINISHED GOODS WITH EXEMPTION” within the Customs Information System (Sistem Maklumat Kastam (SMK)) when declaring the […]
Customs Revised Guides on Accommodation
Some significant amendments to the Service Tax Regulations 2018 under the Service Tax (Amendment) Regulations 2023 [P.U. (A) 150/2023], which was gazetted on 12 May 2023. These Regulations come into operation on 15 May 2023. We would like to inform you that the RMCD released an updated service tax guide on accommodation services on 27 […]
Update on Employment Laws: Employment (Exemption) Order 2012 Revoked
The Employment (Exemption) (Revocation) Order 2023 [P.U. (A) 257/2023], gazetted on 29 August 2023, revokes the Employment (Exemption) Order 2012 and will be effective from 1 September 2023. The Minister of Human Resources, Sivakumar A/L Varatharaju Naidu issued the order. The Employment (Exemption) Order 2012 is a regulation that grants exemption from certain sections of […]
Offer to Compound Offences Under Copyright Act 1987
The Copyright (Compounding of Offences) Regulations 2023 [P.U. (A) 265/2023] allow certain copyright offences to be settled by paying a fine instead of going to court. The offences that can be compounded are listed in Schedule 1 of the regulations. The compounding process involves issuing a compound offer, which the offender can accept. Payment of […]
Practice Note 1/2023 – Explanation on the tax treatment on forex gain & losses under PITA 1967
The Inland Revenue Board of Malaysia (HASiL) issued Practise Note No. 1/2023 on 15 June 2023 to explain how foreign exchange (forex) gains and losses are taxed for a chargeable person under the Petroleum (Income Tax) Act 1967 (PITA) based on the rules set out in Public Ruling No. 12/2019 and MFRS 121 Guidelines. Foreign […]
