19-25 November
KPMG: Possible reduction in corporate tax rate by 2019, 22 November 2017
There is a possibility that there will be a cut in Malaysia’s corporate tax rate by 2019 which will kickstart economic growth, higher productivity and competitiveness, said Ong Guan Heng of KPMG Tax Services Sdn Bhd. He pointed out that many countries have reduced corporate tax rates and are relying on broad-based indirect tax to increase revenue.
He acknowledged that the tax authorities will have their work cut out for them, should the rate be reduced to below 20%, and that the government will still need to find the balance between fiscal health and the tax regime.
Source: The Edge Markets, 20 November 2017
IRB focus on banks under Ops Mega 2017, 28 November 2017
The Inland Revenue Board (IRB) is auditing 15 banks in Malaysia that have offshore dealings as part of its “Operasi Mega 2017” (Ops Mega 2017).
According to the IRB deputy chief executive (compliance), phase one of the audit involves auditing the 15 banks (local and foreign) on their offshore transactions and transfer pricing issues (eg, tax rates imposed on entities in Labuan and Peninsular Malaysia). He declined to share the targeted collection amount from the banks.
The Ops Mega 2017, commenced on 20 November 2017 and will end on 1 December 2017, includes tax audit, tax investigation, tax collection, civil lawsuit, and raising awareness of taxation and compliance.
The IRB will be initiating 1,393 lawsuits over unpaid taxes totalling RM120.127m. It will also be conducting surprise visits to business premises, home or offices as part of its tax investigations. The IRB will be conducting briefings, distributing brochures and sending out emails as part of its efforts to increase awareness of taxation and compliance. Apart from that, it has sent out reminders and notices to 6,560 taxpayers with unpaid taxes totalling RM434.175m.
Source: The Edge Markets, 23 November 2017
IRB responds to MTUC’s comment on IRB needing a better system, 28 November 2017
The Inland Revenue Board (IRB) has released a response to a comment made by the Malaysian Trades Union Congress (MTUC) in a press report titled “IRB Needs a Better System”. The IRB informed that it is always improving its delivery service, which commenced upon the shift from the formal assessment system to self-assessment system (SAS). Pursuant to this, the IRB has implemented the e-filing and ByrHasil system to make it easier for taxpayers to declare their income and make tax payments. The IRB has then improved its e-filing system to allow taxpayers to amend their income tax returns online.
The IRB also informed that its website is always updated with the necessary information for the taxpayers and has provided access to various online services to ease the taxpayers’ management of their tax affairs.
Kindly visit the IRB website for further information.
Source: IRB website, 24 November 2017
Social media traders subject to same tax treatment as conventional businesses, 28 November 2017
Individuals or businesses that sell their wares on social media platforms such as Instagram and Facebook must declare their income and file tax returns despite not being registered with the Companies Commission Malaysia (CCM), said a spokesman for the Inland Revenue Board (IRB).
Although there are no particular provisions in the Income Tax Act 1967 (the Act) governing online businesses, s 4 of the Act provides that business income will be subject to tax after deducting allowable expenditure and tax reliefs. The tax authorities’ Guidelines on Taxation of Electronic Commerce provides that e-commerce businesses will be subjected to the same tax treatment as conventional businesses.
Source: The Sun, 27 November 2017
Like this article? Visit our page for more.
For similar future events,
Visit our Facebook page or subscribe to us to get more information.
