Malaysia clarified tax treatment of income received by a foreign fund management company

11 September, 2014

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

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Malaysia-Poland: Ratified the income tax treaty

04 July, 2014

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

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Malaysia: Inclusion of the new check-the-box requirements and its consequences

03 July, 2014

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

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Malaysia – Transfer pricing documentation required for 2014 tax return

18 May, 2014

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

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Hong Kong and Malaysia Discuss Islamic Finance

27 April, 2014

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

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Malaysia – Steep Penalties in GST Bill

16 April, 2014

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

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Malaysia: increasing scrutiny of transfer pricing

23 March, 2014

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

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Malaysia – WTO Tracks Malaysian Tax Developments

16 March, 2014

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

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Malaysia- issues filing program for calendar year 2014

16 March, 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

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Malaysia: Flat corporate tax rate introduced for SMEs which merge

23 February, 2014

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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Malaysia: New Public Ruling on Withholding Tax on Special Classes of Income

17 February, 2014

The Inland Revenue Board of Malaysia issued Public Ruling No. 1/2014 (PR No. 1/2014) on Withholding Tax on Special Classes of Income on 23 January 2014. The special classes of income covered by the public ruling include amounts paid in consideration

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Malaysia Confirms Change of Policy on Vehicle Excise Tax Cut

03 February, 2014

Despite last year's election manifesto promise, and persistent calls for a reduction in Malaysia's high car prices, the International Trade and Industry Minister has confirmed that the Government has no plans to reduce vehicle excise duties at the

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Malaysia: Audits process

26 January, 2014

Under the transfer pricing audit framework for transfer pricing audit effective from 1 April 2013, a taxpayer may be selected for audit based on the significance of its controlled transactions before taking into account other risk analysis. The time

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GST in Malaysia supported by the IMF

19 December, 2013

It was reported on 19 December 2013 that the International Monetary Fund’s (IMF) Mission Chief for Malaysia said at the conclusion of discussions for the 2013 Article IV Consultation that he welcomes the country’s decision to introduce a Goods

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Malaysian Budget for 2014

06 November, 2013

Malaysia’s budget for 2014 proposes a new goods and services tax (GST) to replace the existing sales tax and service tax regimes. The GST would be effective from 1 April 2015. It would be imposed at a rate of 6% (with some goods and services

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Malaysia – GST implementation to be delayed beyond 2014

03 November, 2013

The Malaysian Budget for 2014 which may be presented to Parliament in the near future is unlikely to include details of the GST, which is due to replace the existing Sales Tax and Service Tax of 10% and 6% respectively. Plans to introduce a Goods

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Canada-Malaysia Tax Treaty Signed

22 October, 2013

Canada and Malaysia has signed a declaration of intent on October 7, 2013 to conclude a new tax agreement that will deduct tax obstacles and inspire to increase trade and investment. The new agreement will include provisions consistent with the

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Malaysia: Hike in Property Gains Tax

08 September, 2013

Malaysia is considering a hike in the real property gains tax (RPGT), which is imposed on the profits from the sale of properties within certain periods after their purchase. This would be done to restrict what is seen as too much speculation in the

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