TRAVEL bans are being used by the tax authorities to pressure taxpayers to settle outstanding liabilities, whether or not those liabilities are correct in law.
Tax Matters – Is a travel ban a fair collection tactic?
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Tax Matters – Treatment of mutual fund distributions for individuals
IN THE Malaysian marketplace, total assets under management (AUM) by unit trusts or mutual funds amount to more than RM1 trillion.
Tax Matters: SST exemptions – are businesses leaving savings on the table?
BUSINESS enterprises, including companies, are merely supposed to be tax collectors on behalf of the government under the Sales and Service Tax...
Tax Matters – When capital statements may misrepresent undisclosed income
A CAPITAL statement is a tool used by income tax authorities worldwide to estimate, in a “rough” manner, fluctuations in an individual’s wealth by...
Tax Matters – Transfer pricing: How to get your benchmarking correct
EXTERNAL comparability analysis, or benchmarking, is one of the most important yet often misunderstood aspects of transfer pricing. The essence of...
Tax Matters – Intra-group loans frequently raised in audits
IT IS very common for a group of companies to provide loans to one another. The primary reason is to utilise the internal funds before going to...
Tax Matters – Overview of the Global Minimum Tax
THE Global Minimum Tax (GMT) was introduced to address profit shifting by very large multinational enterprises (MNE) to low-tax or tax-free...
Tax Matters – Understanding the Mutuality Principle
THE Mutuality Principle is a principle that is not commonly used and understood by many taxpayers. The underlying concept is a simple proposition...
Tax Matters – Understanding the different types of IRB assessments
TAXES cannot be collected without a formal assessment. All taxpayers must submit the tax returns provided for in legislation in the prescribed forms...
Tax Matters – Transfer pricing deadline looms for Dec 31 year-end taxpayers
ALL taxpayers undertaking related party transactions other than those who are specifically exempted by the Malaysian Transfer Pricing Guidelines...
Tax Matters – Opportunity to rectify e-invoice issues
DESPITE the introduction of the e-invoice for business that commenced from Aug 1 2024, beginning progressively from large enterprises to enterprises...
Tax Matters: CGT or RPGT – which one applies to your capital gain?
UNTIL Jan 1 2024, taxpayers were very clear that only income that is accrued in or derived from Malaysia or received in Malaysia from outside the...
Tax Matters – Time running out on Stamp Duty Special Voluntary Declaration Programme
THE Stamp Duty Special Voluntary Declaration Programme (SVDP), which commenced on Jan 1 this year, is scheduled to end on June 30. One of its key...
Tax Matters – Rising risks in withholding tax compliance amid IRB enforcement
WITHHOLDING taxes on interest and royalties have existed in Malaysia since the enactment of the Income Tax Act 1967. Significant changes to the...
Tax Matters – Inland Revenue Board crackdown on mule accounts
A MULE account is an account used to receive and transfer money on behalf of others, without the account holder being the true owner of the funds or...
Tax Matters – Do not overlook taxation issues in succession planning
MANY local companies in Malaysia, including listed ones, remain family-controlled. These businesses are often founded and managed by...
Tax Matters: RMCD eases burden on exporters affected by Middle East conflict
EXPORT-ORIENTED registered manufacturers, especially those reliant on international markets, are under pressure from many angles. Rising oil and gas...
Tax Matters: Common mistakes businesses are making with e-invoicing
MALAYSIA'S e-invoicing regime, which commenced on Aug 1, 2024, is no longer merely a “future compliance” exercise. Today, the majority of medium and...
Tax Matters: Bad debt deductions – understanding the restrictions
ANY enterprise carrying on a genuine business does not deliberately create bad debts to obtain a tax advantage. In commercial reality, businesses...
Tax Matters – Be careful when waiving debts
DEBT waivers are commonly used by companies, particularly within group structures, as a means of streamlining balance sheets and improving financial...
Tax Matters – The interaction between tax residence and taxation in M’sia
UNDERSTANDING the concept of tax residence is fundamental in determining an individual’s tax position in Malaysia. A recent public ruling issued by...
Tax Matters – Maximising tax reliefs and optimising deductions
AS Malaysia enters the individual tax filing season, taxpayers are encouraged to move beyond last-minute submissions and adopt a more strategic...
Tax Matters – Retrospective resolution of SST misunderstanding via voluntary declaration
SINCE the introduction of the Sales and Service Tax (SST) in September 2018, many taxpayers have struggled to interpret the regulations and...
Tax Matters – Correcting past stamp duty non-declaration through Self Voluntary Disclosure Programme
STAMP DUTY is applicable on all agreements specified in the First Schedule of the Stamp Act 1949. The agreements are referred in the Act to as...
Tax Matters – CP204 beyond compliance – a strategic tax tool
THERE is a fundamental misunderstanding by taxpayers that the CP204 is a means to collect taxes in advance. The truth of the matter is the tax is...
Tax Matters – Welcome boost as IRB accelerates refunds
IT WAS a bumper year for tax refunds in 2025, with the Inland Revenue Board (IRB) refunding RM22.45 billion in direct taxes. This will be a welcome...
Tax Matters – Entering India’s market: considerations for Malaysian businesses
WITH Indian Prime Minister Narendra Modi’s recent visit to Malaysia highlighting closer economic ties between the two countries, India’s growing...
Tax Matters – Aggressive tax planning under IRB’s spotlight
OVER the past decade since the publication of the Base Erosion and Profit Shifting documents by the Organisation for Economic Cooperation and...
Tax Matters – Offshore income: what is really taxable?
RECENTLY, there was a media announcement by the Inland Revenue Board (IRB) that it has identified 14,858 Malaysian tax residents with RM10 billion...
Tax Matters – Stamp Duty Special Voluntary Disclosure Programme 2026 an opportunity not to be missed
STAMP duty is no longer in hibernation. Since 2025, the Inland Revenue Board (IRB) has significantly intensified stamp duty audits, turning...
Tax Matters: Transfer pricing audits on the rise – are you prepared?
IN RECENT YEARS, Malaysia’s Inland Revenue Board (IRB) has stepped up its focus on transfer pricing audits. Businesses engaging in related...
Tax Matters – Common mistakes made in preparing Form E and Form EA
EMPLOYERS are required to accurately report all forms of employee remuneration in Form EA and Form E. This includes all types of income received by...
Tax Matters – Clearing misconceptions over CP500
CP500 has been in place for many years and it is not a new initiative by the Inland Revenue Board (IRB). In the past, individual taxpayers with...
Tax Matters – Treatment of court-awarded contract damages
WHEN a party to a contract fails to perform in accordance with the stated terms and conditions, legal action can be taken by the other party to seek...
Tax Matters – Be prepared for challenges in 2026
THE Malaysian tax scene has been very active in 2025 with various important measures introduced on direct and indirect tax areas. On the indirect...
Tax Matters – Maximise your reliefs and deductions before Dec 31
THE end of the tax year – Dec 31 2025 – is around the corner. You still have just nine days or so to ensure that you pay the correct amount of tax...
Taxpayers face dilemma with switch to self-assessment system for stamp duty
ALL taxpayers should be aware by now that the stamp duty regime is being migrated from the official assessment system to the self-assessment system...
Tax Matters – Interest-free loans under scrutiny
IT IS not uncommon for companies within a group to provide financial assistance to one another in the form of loans, advances or trade credits. The...
Tax Matters – Still many issues lingering over e-invoicing
E-INVOICING was introduced in Malaysia to digitalise tax administration, improve efficiency and enhance overall compliance. The first three phases...
Tax Matters – Challenges faced by construction companies in implementing SST
ALL construction services are subject to service tax at 6% from July 1 2025. To a layman, construction services should be confined to only...
Tax Matters: Intangibles — the untold story
THERE is often little attention given to intangibles in tax matters, even though they represent a significant portion of value in many transactions....
Tax Matters – Are you ready for stamp duty self-assessment in 2026?
THERE will be a big change in the stamp duty regime from the official assessment system where the tax authorities will determine the duty payable to...
Tax Matters – Insight into treatment of festive gifts
THIS is again another season where festive gifts will be given to those celebrating Deepavali. Similarly, since Malaysia is a multicultural society,...
Expect strengthening of tax governance to fund next year’s budget
Prime Minister Datuk Seri Anwar Ibrahim has once again introduced the biggest budget in Malaysia’s history, amounting to RM419bil. What is...
Tax Matters – Malaysia charts new course with self-funded Budget 2026
BUDGET 2026 is a game changer because the government has chosen to fund its expenditure with minimal increases in taxes, and the increases has been...
Tax Matters – Responsible tax management best defence against audits
THE frequency and intensity of tax audits by the Inland Revenue Board of Malaysia (IRB) is on the increase. There is a perception that if an audit...
Tax Matters – Best practices for handling transfer pricing in intra-group loans
INTRA-GROUP financing (IGF) has become one of the most scrutinised areas in taxation. The taxman looks at these transactions as a form of financial...
Tax Matters – What constitutes ‘control’ in transfer pricing?
TRANSFER pricing is triggered whenever there are transactions between associated persons where one party has control over the other, or where both...
Tax Matters – Practical problems surrounding capital statements
A CAPITAL statement is a summary of your assets and liabilities for a tax year to assess whether your declared income for that same period matches...
Tax Matters – Importance of determining business commencement date
THE date of incorporation of a company is commonly misinterpreted to be synonymous with the commencement of the business for income tax purposes....
Tax Matters – Decoding the treatment of hybrid financial instruments
A HYBRID financial instrument is a financial security that combines the features of both debt and equity. These instruments are widely used across...
Tax Matters – Insight into taxation of cash trusts
DISCUSSION of cash trusts has been brought up by the media recently since the amount of money flowing into these trusts runs into billions of...
Tax Matters – Casual and miscellaneous receipts can be taxed
MALAYSIA'S income tax law is comprehensive and is designed to catch all income with very few exceptions. You do not need to be in business to be...
Tax Matters – SST challenges faced by construction industry
FROM July 1, 2025, all construction services are subject to a 6% tax, except those provided solely for residential projects, which certainly...
Tax Matters – Timely for businesses to review their stamp duty position
ALTHOUGH stamp duty has been present since 1949, compliance has not been the top focus of taxpayers since the tax authorities have been relaxed over...
Tax Matters – How are clubs, associations and trade bodies taxed?
CLUBS, associations and trade bodies/associations are distinguished from business enterprises, and the prime differentiator is that making profit is...
Tax Matters – Risks around shadow ownership through nominee arrangements
IT IS common in many industries such as the oil and gas industry or industries that require government licensing where there are strict ownership...
Tax Matters – Non-reviewable contracts: Relief or missed opportunity from SST?
IT IS very common for businesses to sign long-term contracts that will go beyond one year. At the time of signing these contracts, the parties to...
Tax Matters – Corporates, do not overpay your taxes
OVERPAYING your taxes will not earn any brownie points with the tax authorities. Paying extra taxes adds to the authorities’ burden to monitor the...
Tax Matters – How should businesses prepare for Sales and Service Tax expansion?
ALL businesses will be affected directly or indirectly by the significant expansion of the Sales and Service Tax (SST) regime which will become...
Tax Matters – Highlights of SST expansion affecting businesses
THERE are significant changes to sales tax and service tax. Some 3,400 items have been moved from the exempt category to 5% and 10% sales tax...
Tax Matters – Are independent directors employees or consultants?
ARE independent directors’ employees of the company, or are they consultants providing services to the company? The treatment for e-invoicing,...
Tax Matters – Should contracts related to employment be stamped ?
THERE is significant discussion in the media and in various publications on whether contracts related to employment should be stamped. This has...
Tax Matters – Can you claim credits for tax paid overseas?
INDIVIDUALS and other taxable entities such as companies, trusts, limited liability partnerships, cooperatives, etc, exporting goods and services or...
Tax Matters – Clearing up uncertainties about stamp duty
THE Stamp Office of the Inland Revenue Board (IRB) has been visiting taxpayers to review their compliance with the stamp duty legislation. In this...
Tax Matters – Failing to register for service tax can lead to hefty penalties
THE Royal Malaysian Customs Department (RMCD) is undertaking a special operation to identify businesses which have not registered for service tax...
Tax Matters – Tax Corporate Governance Framework the way forward for large businesses
THE Inland Revenue Board (IRB) has opened its doors to large taxpayers and offer them an opportunity to cooperate with them to manage their tax...
Tax Matters – Do not miss the deadline – file your return on time
INDIVIDUALS not carrying on a business will need to file their personal tax returns latest by May 15. It must be done electronically as manual...
Tax Matters – Are you paying the right RPGT under self-assessment?
FROM January 2025, it is mandatory for taxpayers to self-assess Real Property Gains Tax (RPGT) on disposal of any real property and submit returns...
Owing taxes? You might be barred from leaving Malaysia
MOST of our tax statutes contain a similar theme to deal with taxpayers who have outstanding taxes. If you don’t pay your taxes, you can be barred...
Tax Matters – Inland Revenue Board’s efforts have paid off in increased collections
THE Inland Revenue Board (IRB) increased its tax collection for 2024 to RM184.8 billion, a rise of RM1.5 billion compared to RM183.3 billion in...
Tax Matters – Importance of proper legal documents in taxation
WHENEVER there are transactions between different persons, whether they are related or not, it will inevitably have to be recorded or understood by...
Tax should not be an afterthought in business restructuring
Business restructuring in Malaysia involves numerous tax considerations that needs to be carefully managed to avoid unintended tax consequences...
Pay closer attention to compliance
Failure to pay attention to proper compliance can be very expensive in the form of additional taxes, penalties, surcharges, and in the event any...
Fragmented contracts not a means for tax avoidance
Industries that require significant expenditure in infrastructure and plant and machinery together with specialised technology from overseas will...
Tax Matters – Challenges in Settling Intercompany Balances
AS BUSINESSES expand, they often form groups with multiple subsidiaries or associate companies to provide specialised services and support one...
Tax Matters – Providing incentives does not mean a loss for the government
MOST countries, especially emerging markets, have used tax incentives to attract foreign direct investments. Even developed economies such as Europe...
Tax Matters – How can problems related to e-invoicing be resolved?
THERE have been numerous articles in the media in the past two weeks complaining about the difficulties taxpayers are facing in implementing the...
Tax Matters – Unveiling the highlights of the Johor-Singapore Special Economic Zone
ON JAN 6, the prime ministers of Singapore and Malaysia signed a historical agreement creating the Johor-Singapore Special Economic Zone (JS-SEZ),...
SIGNIFICANT CHANGES TO STAMP DUTY FROM 2025 – PART 2
LAST Week, Part 1 dealt with some of the changes to stamp duty proposed in the Finance Bill 2024. The Bill has become law on 31 December 2024....
Tax Matters – Expect significant changes to stamp duty from 2025
TAXPAYERS usually do not pay attention to stamp duty unless there is a transfer of property that requires the title to be transferred, or...
Tax Matters – Problems faced by importers and exporters
INTERNATIONAL trade is extremely important to Malaysia. In the first 10 months of 2024, exports rose 4.8% to RM1.243 trillion and imports increased...
Estimated assessments and penalties on the way for non-filers
NOT filing any of your tax returns is a serious offence. It can lead to penalties up to 300%, or if the matter is taken to court, there will be...
NAVIGATING THE YEAR END ADJUSTMENTS
THIS is the final month for many Malaysian companies since December financial year end is in alignment with the tax year. The adjustments are needed...
Year-end Personal Tax Planning
THE tax year-end of Dec 31, 2024 is around the corner. You still have about three weeks to ensure you pay the amount of tax, after taking into...
JUSTICE FOR TAXPAYERS: A COSTLY ENDEAVOUR
IN Malaysia, taxpayers who disagree with positions taken by the Inland Revenue Board (IRB) or Customs (RMCD) have the right to appeal to the Special...
RPGT self-assessment likely to trigger challenges
WITH any self-assessment system, the responsibility to file the correct tax return to pay the correct taxes is passed on to the taxpayer. Any...
Challenges in defending capital gains
A High profile case that was reported in the media in September which involved the Inland Revenue Board (IRB) and the disposal of a long-term...
How US election outcome affects M’sian businesses
THE election of Donald Trump as the next president of the United States will move the country towards protecting itself in the trade arena and,...
Taking stocks from your own business can be costly
BUSINESSMEN, whether operating under a corporate umbrella or otherwise, generally assume that using their own stocks for personal use or...
Pragmatic budget but were expectations met?
BUDGET 2025 focuses on the need to steer Malaysia forward in these turbulent times. We have been blessed with a good administration that is...
Malaysia’s new dividend tax aimed at T20 could touch some M40, but minimal impact at 2pc rate
DO you dabble in investing in the Malaysian stock market and are worried you will have to start paying a two per cent personal income tax on...
Budget 2025: Journey towards reforms
THE policies announced deals head on with the reforms that are urgently needed, particularly the commitment to debt management and rationalisation...
Steering Malaysia’s economy in the correct direction
BUDGET 2025 is a refreshing budget that appears to have hit the nail on the head. Despite the fact that our prime minister did not introduce any...
Understanding restructuring and IPO CGT exemptions
MALAYSIA'S finance minister announced the introduction of capital gains tax (CGT) on the disposal of unlisted shares by companies, trusts, limited...
What should be ruled out in Budget 2025
THE economic outlook for Malaysia is very bright, and this is reflected in the 5.9% second quarter gross domestic product (GDP) growth year-on-year...
Forgetting imported service tax will ‘bite’ taxpayers
MOST taxpayers tend to focus on the income tax aspect when one is dealing with the payment to non-residents for the purchase of services. The...
How do you claim your foreign tax credits?
MALAYSIAN taxpayers may have numerous sources of foreign income which have been subjected to tax in the countries concerned. The types of income...
Tax-exempt status of charities no longer guaranteed
MAJORITY of the charitable institutions work in helping the public in the areas of healthcare, education, alleviation of poverty, providing services...