Tax Espresso

Insights

Tax Espresso February 2017

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

In our February 2017 issue, we cover the following topics:

a) Malaysia and China sign Exchange of Notes to DTA
b) Further clarification on e-Filing of Form CP204 for tax estimate of less than 85%
c) Gazette Orders:
i. Income Tax (Deduction For Investment In A Bionexus Status Company) Rules        2016 [P.U.(A) 306/2016]
ii. Income Tax (Exemption) (No.11) Order 2016 [P.U.(A) 345/2016] and Income           Tax (Exemption) (No.12) Order 2016 [P.U (A) 346/2016]
iii. Income Tax (Deduction For Expenditure On Issuance Of Retail Debenture And      Retail Sukuk) Rules 2016 [P.U.(A) 347/2016]

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Thought Leadership

Publications


Deloitte: 6 Specific Business Industries Being Targeted by Tax Authorities

The Malaysian Inland Revenue Board (“MIRB”), under the direction of its new Chief Executive Officer, Datuk Sabin Samitah, is ushering in the new year by beefing up their operations starting 1 Jan 2017 – involving 272 intelligence officers and tax investigators (“task force”).

Read more about it here.

Chow Kuo Seng is the Business Tax Audit & Investigation Leader of Deloitte Malaysia that specialises in tax audit & investigation.

Deloitte: Automatic Exchange of Financial Account Information: No Longer When but with Which Countries?
In further reference to the Organisation for Economic Co-operation and Development’s (“OECD”) effort to combat tax avoidance and evasion at an international level, the Ministry of Finance (“MoF”) has issued the long-awaited Rules and Orders on 23 December 2016 to enable the implementation of Common Reporting Standard (“CRS”) in Malaysia. The “go-live” date for CRS in Malaysia shall be 1 July 2017.
Read more about the CRS here.

Chee Pei Pei is the Financial Services & Insurance (FSI) Tax Leader of Deloitte Tax Malaysia and Mohd Fariz Mohd Faruk is the Associate Director (FSI) of Deloitte Tax Malaysia. Chee Pei Pei and Mohd Fariz Mohd Faruk are both experts in the financial services and insurance industry.
Deloitte: Capital Statements: Do Your Assets Match Against Your Declared Income?

Since the introduction of self-assessment for individual in 2004, individual taxpayers are required to assess their own tax liabilities. The local tax authority will conduct a full examination on individual taxpayer’s records to test the accuracy of the information supplied by way of tax audit or tax investigation. Capital statement is one of the methods used in exercising a tax investigation on an individual taxpayer.

How does the Inland Revenue Board (IRB) know you under-declared your profit or income? This is the question asked by everyone when it is time to file the income tax. 

Read more to find out about capital statements here.

Wong Yu Sann is the Senior Tax Manager of Deloitte Malaysia that specialises in tax audit and investigation.

Malaysia Widens Withholding Tax Net

Deloitte Malaysia’s International Tax Leader, Tan Hooi Beng was quoted in the The Edge Malaysia Weekly, January 23-29, 2017 issue on the scope of withholding tax.

Read the special feature here.

The End of International Tax Planning?

In October 2015, the OECD secretariat published 13 final reports and an explanatory statement outlining consensus actions under the BEPS project. What exactly is BEPS? Does BEPS really matter to Malaysian corporates? This exclusive write-up in The Star newspaper by Tan Hooi Beng, Deloitte Malaysia’s International Tax Leader provides key highlights on BEPS and OECD.

Read the special publication here.

Speaking Engagement

2017: Another Black Swan Year?
18 January 2017

Deloitte Malaysia’s Financial Services Industry (FSI) Tax Leader, Chee Pei Pei and National Transfer Pricing Leader, Theresa Goh were invited to participate as guest speakers in a joint luncheon talk with ECM Libra that aims to target High Net Worth Individuals (HNWIs). The talk focuses mainly on Common Reporting Standard (“CRS”) and its implications to HNWIs. Held on the 18 January 2017 at Pietro Italiano Ristorante, Bangsar, the talk was attended by more than 80 guests.

Click here to view more photos.

Talent Engagement

Interns Unite Series

3 February 2017

As part of our Interns Unite Series, Deloitte’s six Audit interns Chin Wei Ting, Lim Jun Hong, Kuang Yue Fan, Wong Siew Yen, Sim Hui Ling, and Wong Yen Soo from University of Malaya (UM) met with Jimmy Lai, Audit Partner and University Mentor Partner (UMP) for UM and Sim Kwang Gek, Tax Partner and Co-UMP for UM on 3 February 2017. The session was also joined by our Senior Talent Engagement Manager Sunita Kaur, and the HR team.

The interns shared their experiences and provided feedback on their six months with Deloitte, highlighting what they have learned since the start of their internship in September 2016. These were most helpful for the future improvement of our internship programme. It was also heartening to receive commendations from the interns on the positive and good working culture at Deloitte, notably on the helpfulness of seniors who assisted them in settling in and invested time to guide them on assigned tasks.

Click here to view more photos on our Facebook page.

Upcoming event

Transfer Pricing: CbCR & New Reporting Requirements

15 February 2017

On 23 December 2016, the IRB issued Income Tax (Country-by-Country Reporting) Rule 2016 (CbCR Rules), in line with the final recommendations of OECD BEPS Action Point 13. CbCR is expected to assist IRB in conducting effective risk-based audits with more transparent information. The CbCR Rules will primarily impact multinational groups of companies with headquarters in Malaysia. The CbCR information requested by IRB is for assessing transfer pricing / BEPS risks.

If you are interested to find out more about:

• The CbCR framework and how it will affect your company
• Preparedness required for CbCR compliance – risk assessment of existing structure, data management, efficient centralised documentation approach, etc.
• Deloitte solutions and tools

Click on the following link to learn more about our event.

Transfer Pricing: Audit Trends & New Reporting Requirements

7 March 2017

On 23 December 2016, the IRB issued Income Tax (Country-by-Country Reporting) Rule 2016 (CbCR Rules), in line with the final recommendations of OECD BEPS Action Point 13. CbCR is expected to assist IRB in conducting effective risk-based audits with more transparent information.

If you are interested to find out more about:

• 2016 TP Audit Cases – our experience and mitigation measures; and
• CbCR & local TP documentation – what’s there in store for MNC subsidiaries and
domestic groups?

Click on the following link to learn more about our event.

Past events

  1. Burning International Tax Issues (Tax Workshop) (12 January 2017)
  2. 2016 Employer’s Income Tax Reporting Seminar
    (18 January 2017 - Penang)
    (19 January 2017 - Ipoh, KL)
    (8 February 2017 - KL)
  3. Malaysia 6th Annual Property Conference 2017 (18-19 January 2017)

Visit this page to view details about each past event.

Contact our Tax team if you need assistance.

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