Transfer Pricing Documentation

Effective 1 January 2021, it is mandatory for taxpayers to prepare and maintain contemporaneous Transfer Pricing (TP) documentation. The TP documentation must be prepared in the format depicted in the TP legislation and guidelines 2012. Failure to furnish TP documentation within 14 days upon request by the tax authorities will result in a penalty ranging […]

Covid-19 Economic Stimulus Package

The RM35 billion Economic Recovery Plan (PENJANA) that was recently announced by the Malaysian Prime Minister included a variety of initiatives to stimulate Malaysia’s overall economy. Among the initiatives announced are: 1. Remission of penalties of 50% for late sales and service payments (Jul-Sep 2020), 2. Extension of Accelerated Capital Allowances for Machinery and ICT […]

Malaysia introduces new Beneficial Ownership framework

The Companies Commission of Malaysia has made it mandatory for all legal persons to disclose their Ultimate Beneficial Owners In March 2020, the Companies Commission of Malaysia (SSM) produced guidelines which outlined rules surrounding the disclosure of Beneficial Owners for legal persons in Malaysia. As of March 1, 2020 all companies and Limited Liability Partnerships […]

Introducing Digital Service Tax

The Digital Service Tax will be introduced on 1 January 2020 at the rate of 6%. Digital service is defined as any service that is delivered or subscribed over the internet or other electronic network and which cannot be obtained without the use of information technology and where the delivery of the service is essentially […]

Redefinition of SMEs and Preferential Tax Rate

With effect from Year of Assessment 2020, the definition of SMEs has been amended as follow: SMEs refer to resident companies that have paid up capital of RM2.5 million or less at the beginning of a basis period for a YA.  SMEs enjoy a preferential rate of  17% on the first RM600,000 chargeable income and […]