DTA between Belarus and Malaysia initialed
Malaysia and Belarus initialed a tax treaty following successful negotiations held from 10 to 13 March 2015 in Malaysia. Once signed, in force and effective, the new treaty will replace the former USSR - Malaysia Income Tax Treaty
See MoreIMF comments on Malaysia’s economic position
On 13 February 2015 the IMF executive board concluded consultations with Malaysia under Article IV of the IMF’s articles of agreement. The report indicates that the Malaysian economy has recently performed well. Economic growth was 5.9% in 2014
See MoreMalaysia: Decentralization of Income tax Files Subsequent to the Setting Up of Large Taxpayer Branch (LTB) and Large Taxpayer Unit (LTU)
To improve the quality of services to clients, Inland Revenue Board of Malaysia (IRBM) released a press notice to inform that with effect from 1 January 2015, the Corporate Tax Department has been renamed to Large Taxpayer Branch (LTB) and will
See MoreMalaysia: IRB Issues Public Ruling On Qualifying Plant And Machinery For Claiming Capital Allowances
The Inland Revenue Board of Malaysia (IRBM) released a public ruling (No.12/2014) on qualifying plant and machinery for claiming capital allowances on December 31, 2014. The objective of this Public Ruling (PR) is to explain whether an asset is a
See MoreMalaysia: IRB Issues Public Ruling On Small Asset Tax Allowance
The Inland Revenue Board of Malaysia (IRBM) has issued a new public ruling providing guidance on the 100 percent special allowance afforded to businesses for capital expenditure incurred on their purchase of small value assets. The objective of this
See MoreMalaysia: Approves budget for 2015
Malaysia’s Finance Minister delivered the 2015 Budget on 10 October 2014. The current statute of limitation for tax adjustment in Malaysia is five years. According to the budget assessments or additional assessments may be made within five years
See MoreMalaysian Prime Minister Defends the Introduction of a Goods And Services Tax
The Malaysian Prime Minister has defended the introduction of a goods and services tax (GST) in Malaysia with effect from April 2015. The Government has stated that it will bring 300,000 taxpayers out of the income tax base with revenues which will
See MoreMalaysian 2015 budget cuts Individual and Corporate Tax rates
The Malaysian Prime Minister and Minister of Finance Najib Razak announced a cut in Individual and Corporate tax rates in his budget speech in October 10, 2014 though not until 2016. Individual Tax: The rate of Individual tax rates to be cut by one
See MoreMalaysia clarified tax treatment of income received by a foreign fund management company
A public ruling has been issued by the Inland Revenue Board of Malaysia explaining the tax treatment of income received by a foreign fund management company that provides fund management services to foreign and local investors. Foreign fund
See MoreMalaysia-Poland: Ratified the income tax treaty
The income tax treaty between Malaysia and Poland (2013) was released on 23 June 2014 after sanctioned by Malaysia this new treaty will replace the Malaysia-Poland tax treaty of
See MoreMalaysia: Inclusion of the new check-the-box requirements and its consequences
A new check-the-box named “Box R4” has been inserted on the 2014 tax return form (Form C) of Malaysia to declare by the corporate taxpayer for the confirmation that the preparation of contemporaneous transfer pricing documentation is complied in
See MoreMalaysia – Transfer pricing documentation required for 2014 tax return
The Malaysian transfer pricing rules imposing the arm’s length principle are contained in section 140A of the Income Tax Act. The Inland Revenue Board has been increasing its scrutiny of the transfer pricing issues of large taxpayers and is
See MoreHong Kong and Malaysia Discuss Islamic Finance
The Hong Kong Monetary Authority (HKMA) and Bank Negara Malaysia (BNM) took part in a meeting on 14 April 2014 to discuss Islamic finance. They are aiming to increase interest in the financial instrument known as sukuk as a viable financing and
See MoreMalaysia – Steep Penalties in GST Bill
Malaysia is to introduce a new Goods and Services Tax (GST) Act to replace a draft Act originally put forward in 2009. The new Act will contain harsh penalties for taxpayers who fail to comply with its provisions. The GST rates and structure are not
See MoreMalaysia: increasing scrutiny of transfer pricing
The transfer pricing landscape in Malaysia continues to develop with the Malaysian tax authority becoming increasingly proactive and vigilant in examining the controlled transactions of multinational enterprises (MNEs). The intensity of tax audits
See MoreMalaysia – WTO Tracks Malaysian Tax Developments
The World Trade Organization (WTO) has recently stated in its Trade Policy Review of Malaysia that the country needs to implement fiscal consolidation and tax reforms to ensure equitable and sustainable growth. The WTO noted the country's plans for
See MoreMalaysia- issues filing program for calendar year 2014
The Inland Revenue Board of Malaysia has issued the filing program for 2014: Non-corporate entities: Form Deadline period for submission Form E – Return Form of Employer 31 March 2014 hand
See MoreMalaysia: Flat corporate tax rate introduced for SMEs which merge
On 14 February 2014, the International Trade and Industry Minister announced a flat rate of 20% for 5 years for Small-Medium Enterprises (SMEs) which have merged to form larger entities. Currently, SMEs only enjoy the reduced corporate tax rate of
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