Please find the details of each topic below and we hope the information presented is useful to you.
Happy reading!
With compliments from,
M.S.Wong & Co.
i)I) WITHHOLDING TAX EXEMPTION ON PAYMENTS TO NON-RESIDENTS FOR SERVICES UNDER SECTION 4A(I) AND (II) (SPECIAL CLASSES OF INCOME) RENDERED OUTSIDE MALAYSIA
You may remember from our previous newsletters that the Finance Act 2017 which came into effect from 17 January 2017 made amendments to Section 4A of the Income Tax Act, 1967 (ITA) which resulted in payments made to non-residents for services under Section 4A(i) and (ii) being subjected to withholding tax, regardless of whether the services are performed in or outside Malaysia.
The exemption order is essentially a 360-degree turnaround, reverting to the treatment prior to 17 January 2017. From 6 September onwards, withholding tax will no longer apply to payments made to non-residents for services under Section 4A(i) and (ii) (Special Classes of Income) rendered outside Malaysia.
This is definitely a good news but there is still uncertainty on services rendered overseas for the period between 17 January 2017 and 6 September 2017.
Pursuant to Section 20(C) of the CCM Act 2001, CCM has issued a Practice Directory in last August that sets out the qualifying criteria for private companies being exempted from audit. Please refer to the following table for a quick overview of the qualifying criteria: –
Qualifying Companies
Dormant
Zero Revenue
Threshold Qualified Companies
Criteria
Dormant since date of incorporation, or
Remained dormant for 2 years (current + immediate preceding financial year)
For 3 (current + 2 immediate preceding years) consecutive years:
Zero revenue; or
Total assets do not exceed RM300,000
For 3 (current + 2 immediate preceding years) consecutive years:
Revenue does not exceed RM100,000;
Total assets do not exceed RM300,000 and
Employed not more than 5 employees
Effective Date
Incorporated after 31/1/2017 – Starting immediately
Existing companies – financial period starting from 1/9/2017
Incorporated after 31/1/2017 – Starting immediately
Financial period starting from 1/1/2018
Financial period starting from 1/7/2018
The Company that choose to be exempted from audit must ensure that they comply the following requirements:
Circulate the unaudited financial statements within 6 months after Companies financial year end;
The unaudited financial statements must be prepared in accordance with approved accounting standards (i.e. MPERS or MFRS) and complies with the requirements of the CA 2016.
Lodge Directors’ Report, Statement by Directors, Statutory Declaration and Unaudited Financial Statements and Audit Exemption Certification within 30 days of circulation.
If member(s) with more than 5% voting rights issues a written notice requesting the Company to be audited, Company must comply accordingly.
Please find the link appended below to the original Practice Directive issued by CCM.
Ever since we discussed about the proposed TTx framework in our newsletter issued in Jul’17, several changes have been taken place and the TTx was finally enforced on 1st September 2017. We summarise some of the key points for you to take note: –
A flax TTx rate at RM10/ room /night will be charged on a tourist staying at any accommodation premises made available by an operator in Malaysia.
Malaysian nationals or permanent residents who hold MyPR cards are exempted from payment of tourism tax.
Registration for TTx can be made online via www.myttx.customs.gov.my and new operator should apply within 30 days from the date the operator operates the accommodation premise.
Operator should account for TTx collected in Form TTx-03 not later than the last day of the month following the end of his taxable period.
Accommodation premises with not more than 4 rooms is exempted from TTx (proposed was 10 rooms previously).
For further information, please check on TTx website.
Please be informed that all applications relating to Standard/ Varied Taxable Period (VTP) must be made via Taxpayer Access Point (TAP). Customs will not process any application via letter to GST Division, Putrajaya or via ADM 21 form to GST Processing Centre, Kelana Jaya effective immediately.
Please check the link below for more information:-
Intellectual Property Technology Sdn Bhd will be holding a seminar that explores trademark and digital marketing on 1st November 2017 in Johor Bahru. The following are the basic details of the seminar: –
Date: 1st November 2017
Time: 9:00 am – 1:00pm
Location: Suite 21.03, 21st Floor, Menara Zurich, 15, Jalan Dato Abdullah Tahir, Taman Abad, 80300 Johor Bahru, Malaysia.
Course Fee: RM200
For more information, click on the link below for the brochure or contact Edmond
(016-7113220).
