Tax

Tax compliance.

Taxation systems and incentives in Malaysia are the most diverse in the world. The region has a broad range of rates of corporate and individual tax. Under today's self-assessment environment, tax affairs require even greater focus and accountability. Entrepreneurial is compelled to keep updating with the latest tax information.

At KTP Tax Consultants Sdn Bhd, we are in a position to assist businesses, individuals and organizations optimize tax efficiencies and strategies, implement innovative tax planning and maintain compliance whilst delivering a broad range of tax advisory services. We not only provide compliance services but also the solutions to businesses.

The Inland Revenue Board of Malaysia is one of the main revenue collecting agencies of the Ministry of Finance. Our main services are corporate and personal tax advisory. We also provide services in the application of wide ranges of grants and incentives, especially for SME.

Tax incentive.

In Malaysia, tax incentives no matter direct or indirect, are provided for in the Promotion of Investments Act 1986, Income Tax Act 1967, Customs Act 1967, Sales Tax Act 1972, Excise Act 1976 and Free Zones Act 1990. These Acts cover investments in the manufacturing, agriculture, tourism (including hotel) and approved services sectors as well as R&D, training and environmental protection activities. The direct tax incentives grant partial or total relief from income tax payment for a specified period, while indirect tax incentives were in the form of exemptions from import duty, sales tax, and exercise duty.

To provide greater financial accessibilities, the government through its agencies offers various grants and incentives to SMEs. Partial grants are provided to finance product, process and quality improvements, market development, skills upgrading, factory audit and acquisition of strategic technology.

Read a real-life reinvestment allowance case study.
Read a real-life pioneer status case study.

Tax audit.

A tax audit is conducted by the Inland Revenue Board (IRB) and its' may be done randomly, or maybe undertaken because the tax authority believes that there is a problem with the taxpayer's return. If an audit finds an error or a misstatement on the tax return, the taxpayers may have to pay the additional taxes as well as penalties.

Appeal to Special Commissioner.

Content a person has the right to appeal to the Special Commissioners of Income Tax (SCIT) only if he is dissatisfied with an assessment that has been made or deemed to have been made by the Director General of Inland Revenue Malaysia (DGIRM).

Tax investigation.

A tax investigation is carried out by IRB officers paying a surprise visit, is an examination by the tax authorities of the taxpayers' business, records and documents to verify and assess that the correct of taxable income has been reported and the correct amount of tax had been paid by the taxpayers in accordance with tax laws and regulations.

Transfer pricing.

Transfer pricing documentation is required by law. This documentation must substantiate how the intercompany business is set up and evidencing that the intercompany pricing applied would have been applied between third parties as well. Having adequate transfer pricing documentation available helps to prevent companies from being confronted with a shift of the burden of proof with respect to transfer pricing adjustments imposed by tax authorities, as well as double taxation. Moreover, non-compliance with transfer pricing documentation requirements can lead to penalties.

Read a real-life transfer pricing case study.