Tax Espresso

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Tax Espresso

August 2022

The Tax Espresso is our monthly newsletter covering the latest tax updates.

In our August 2022 issue, we cover the following topics:

1. Public Ruling No. 1/2022 - Time Limit for Unabsorbed Adjusted Business Losses Carried Forward

2. Administrative changes to the 2% withholding tax deduction by a payer company on payment to a resident individual agent, dealer or distributor

3. Technical Guidelines on Tax Treatment of Developers or Management Bodies for the Maintenance and Management of Buildings and Joint Property

4. Discussion forum between HASiL and CTIM on Profiling Issues

5. Gunung Lang Development Sdn Bhd v DGIR (HC)

6. Jurutera Teras Bistari v Pesuruhjaya Khas Cukai Pendapatan & Anor (HC)

7. Petronas Trading Corporation Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri (HC)

8. Seiwa Podoyo Sdn Bhd v KPHDN (HC)

Get to know the latest updates by downloading a copy of the Tax Espresso newsletter on the right!

Deloitte Malaysia is recognised as Malaysia Tax Firm of the Year 2021 and Transfer Pricing Firm of the Year 2021 by the International Tax Review. As the country’s leading tax expert, we hold various tax events and workshops, in addition to participating in speaking engagements at tax seminars.
 

Click the links below to view the Tax Espresso archive:

Awards

International Tax Review Asia Tax Awards 2021

In the recently announced International Tax Review (ITR) Asia Tax Awards 2021, Deloitte Malaysia has won two ITR awards.

For the fourth time in the last 5 years, we have been named the coveted Malaysia Tax Firm of the Year. We were also recognised as the Malaysia Transfer Pricing Firm of the Year for 2 consecutive years. These achievements showcase the strengths of Deloitte’s long-standing capabilities in the areas of Tax and Transfer Pricing. The standard of excellence consistently attained by our Tax practice is made possible with formidable support of the entire Firm where everyone across all businesses work collaboratively.

To all our valued clients, thank you for the trust and confidence you place in us as your advisors and partners. We look forward to continuing this partnership with you, especially during this challenging period.

Media Coverage

The Star – Preparing for a global tax reform

The proposed global minimum corporate tax (GMT), to curtail tax competition and shifting of profits, is set to benefit Malaysia if it follows international tax developments and does not forgo taxing rights on the profits generated here to other countries. Tan Hooi Beng, Deloitte Southeast Asia International Tax Leader, said having an early understanding of the GMT’s impact and being prepared, is key to an effective and efficient implementation. To ensure effective implementation, among others, it is essential to perform impact assessment from a group-wide perspective and identify risk areas, he said.

Click here to view.

New Straits Times – Shoring up government coffers

There is a need for the government to introduce new taxes to shore up revenues especially as the economy gradually recovers, economists said. Deloitte Malaysia Tax Leader, Sim Kwang Gek said the amount of tax revenue collected should increase in tandem with the gradual recovery of the economy. "On reducing tax leakages, I applaud the tax authorities' move to introduce the Tax Identification Number for all individuals aged 18 and above and the Tax Compliance Certificate as a pre-condition for government tenders,” said Sim.

Click here to view.

TV3 – Government advised to delay collection of taxes on low value imported goods

The government is advised to postpone the implementation of sales tax on low value imported goods (LVG) sold online, which will come into force on 1 January 2023. Deloitte Malaysia Indirect Tax Leader, Tan Eng Yew said, this delay is also to ensure that traders and customs are ready for tax collection activities. Clear and effective laws need to be implemented so that buyers and sellers understand sales tax operations and can easily adopt them.

Click here to view.

BFM – The Business Station - Podcast Morning Brief: Taxman cometh to shore up our fiscal position

With 10% tax on imported low-value goods, GST, and global minimum tax of 15% on MNC, what do these new taxes mean for us and for the government coffers? Senthuran Elalingam, Deloitte Malaysia Tax Executive Director shared his sentiments.

Click here to view.

Upcoming Events

Global Minimum Tax - What MNCs operating in Malaysia need to know
19 August 2022

In 2023, the world’s largest international tax reform is anticipated to take effect. As one of the 137 members of the OECD Inclusive Framework, Malaysia has agreed to the Two-Pillar tax reform and is expected to implement the Global Minimum Tax (“GMT”) rules. On 1 August 2022, the Ministry of Finance of Malaysia published a Public Consultation Paper in relation to the implementation of the said rules in Malaysia.

It is expected that a number of Malaysian subsidiaries of foreign-based MNCs would be within scope as the rules target MNCs with global consolidated revenue of at least €750 million. These groups would need to start assessing the impact of such rules. The timeline for implementation, the possibility of domestic minimum tax, the impact on tax incentives etc are some of key issues that are of interest to MNCs.

We are thus pleased to invite Tax and Finance Leaders of MNCs operating in Malaysia to a Roundtable Discussion on GMT.

Click here to register.

Latest on RMCD VA Program
22 August 2022

Phase 1 of the Special Voluntary Disclosure and Amnesty (“VA”) Program ended on 30 June 2022. At the closing date, the Royal Malaysian Customs Department (“RMCD”) has registered over 13,000 participants for the VA Program.

In our time working with clients and the RMCD on the program, we have observed a variety of issues that businesses face in ensuring compliance with indirect tax requirements. As we move into Phase 2, we are organising a complimentary face-to-face seminar to provide an update on the VA Program, lessons learnt from Phase 1, and what is in store for the next few months.

Click here to register.

Transfer Pricing Changes for YA 2022 Income Tax Return Breakfast talk
2 September 2022

In recent years, Malaysia has taken an increasingly aggressive stance in enforcing transfer pricing compliance. Most notably, from 2021, Malaysia has introduced some landmark changes to transfer pricing law and associated penalty regime. Recently, the tax authority of Malaysia (“IRB”) has released a new format of the Company Return Form (Form C) that would come into effect from the Year of Assessment (“YA”) 2022. In IRB’s continued efforts at tightening transfer pricing compliance, they have included additional disclosure requirements on controlled transactions in the updated return form.

These changes would affect corporate income tax returns and the transfer pricing compliance strategy of taxpayers. Hence, taxpayers should familiarise themselves with the changes to avoid unfavourable positions and penalties in the case of an audit. This session will provide you insights into these developments as well as the implications arising. We will also share how you can approach the additional disclosure requirements in the return.

Click here to register.

Contact our Tax team if you need assistance.

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