Our taxation services

Our taxation services are, but not limited to below –

- Acting as Tax Agent for your company or individual (local and foreigner)

- Tax filing and submission with IRB

- Assist you or your company during tax audit or investigation by IRB

- Analysis and implementation of the upcoming Goods and Services Tax (“GST”)

- Application of tax incentive with IRB, MIDA, MOF, etc

- Tax risk management

- Tax planning and advisory

- Tax compliance review – corporate tax, withholding tax, payroll, etc

Taxation system

In Malaysia, we operate on a self assessment taxation systems, where company is required to determine their own tax liability and make payment to Malaysian Inland Revenue Board (“IRB”).

Beginning from year 2008, the repatriation of company profit by way of dividends is based on single-tier systems, where under this system, a company pays its corporate tax and is then free to declare dividends from its “after tax profit” to the company’s shareholders. The tax paid by the company is final and all dividends paid are exempt from tax in the hands of the shareholders.

There is no capital gain tax in Malaysia, other than Real Property Gain tax, which deals with real property transactions in Malaysia.

Scope of charge & tax rate

A company, whether resident or not, is assessable on income accrued in or derived from Malaysia. Income derived from sources outside Malaysia and remitted to Malaysia is exempted from tax.

Corporate tax rate is at 25% from Year of Assessment 2009 onwards. However, for resident companies with paid up capital of RM2.5 million and less, the first RM500,000 chargeable income is tax at 20%.

Corporate residence

A company is resident in Malaysia for a basis year if at any time during that basis year the management and control of its business or any one businesses are exercised in Malaysia.

The determination of where the management and control taken place in Malaysia is a question of facts, in practice, the place where normally the directors board meeting held is the place where the management and control took place, the place where the company is incorporated or registered has never been a conclusive determination of resident status for tax purposes.

Withholding tax – an amount of tax to be withheld by the payer on payment to a non-resident person so that the non-resident person receives only the net sum. Not all payments subject to withholding tax. In general, the payment for the provision of technical services, rental of property, interest, royalty, contract payment, etc will fall within its scope to withhold tax. The rate varies according to the type of payment and the double tax agreement signed with the contracting country, if any.