Arris Group believes in continuous re-evaluating of business environment, competitive advantage and sharpening its strategy. In doing so, we have to stay on top of the current trends, latest topics and regulations facing businesses today. We are dedicated to inspire our clients to do the same and have created this publications section as a source for information and sharing of thought and knowledge. We hope to provide timely tax alerts, various viewpoints, technical updates to help answer questions, clarify complex issues and provide decision making tools to help our clients evaluate the opportunities and understand the issues that are critical to their business success.
Accounting Article
This area provides access to the most recent ACT Partners' articles:
For the final edition of Arris Notes for 2015, we are pleased to provide a summary of the 2016 Malaysian Tax Budget to enlighten on the taxation as well as the business perspectives.
- Taxation Perspective Read More»»
- Business Perspective Read More»»
This Arris Note on Goods And Services Tax (GST) highlights clarification provided by the Director General (DG) of the Royal Malaysian Customs Department (RMCD) in relation to:
- Imported services
- Foreign exchange rate
We also wish to remind that services “consumed in Malaysia” in relation to imported service means any service which is used, utilised or enjoyed in Malaysia. A recipient of imported services shall be liable for GST for the portion of the services consumed in Malaysia.
A recipient who receives the imported services for the purpose of any business carried on by him is required to account for GST by a reverse charge mechanism. The GST liability shifts from the supplier to the recipient if the recipient’s fixed or business establishment or his usual place of residence is in Malaysia. Hence, the recipient is liable to account GST on the supply made for the purpose of any business carried on by him.
Click here to read the entire report summary
This Arris Note on Goods And Services Tax (GST) highlights certain Input Tax Credit in relation to:
- Business expenses billed to employees
- Utilities billed to owner of business premises
- Pre-registration input tax
Click here to read the entire report summary
GST Bad Debt Relief.
Bad debt relief must be claimed immediately after the expiry of six months from the date of supply. If the bad debt relief is not claimed immediately after the expiry of six months, then the taxable person has to notify the Director General of Customs within 5 days after the expiry of the six month on his intention to claim at a later date.
Click here to read the GST Bad Debt Relief summary
GST Treatment for Passenger Motor Vehicles.
This Arris Note will discuss the relevant GST Law with regard to Treatment for Passenger Motor Vehicles and conclude with the latest clarification provided by RMCD via their Director General’s Decisions.
Click here to read the GST Treatment for Passenger Motor Vehicles summary
Special Sales Tax Refund.
ACT Partners are pleased to advise that we will undertake the responsibilities of producing an audit certificate certifying the amount of special sales tax refund in respect of stock on hand at 1 April 2015 ie at the introduction of the GST.
Please refer to the enclosed Arris Note for the scope of work, objectives, key tasks and deliverables for this assignment. We remain committed to assist our Clients in implementing sound GST practices into existing operations.
Click here to read the special sales tax refund summary
The list of GST items under Zero-Rated Supply, Exempt Supply & Relief Order 2014 have been gazetted.
The list of items in the Goods and Services Tax under the exempt supply, zero-rated supply and relief order have been gazetted. It is important for business owners to understand how these products will impact their pricing and company once GST start in April 1, 2015. Below are the links to all the three documents gazetted in October 13, 2014.
Click here to download the Goods And Services Tax (Exempt Supply) Order 2014 in English and Bahasa Malaysia.
Click here to download the Goods And Services Tax (Zero-Rated Supply) Order 2014 in English and Bahasa Malaysia.
Click here to download the Goods And Services Tax (Relief) Order 2014 in English and Bahasa Malaysia.
GST Act 2014
Business owners should make sure that their companies are fully GST compliant.
Click here to download the Goods And Services Tax Act 2014 in English.
Klik di sini untuk muat turun Akta Cukai Barang Dan Perkhidmatan 2014 dalam Bahasa Malaysia.
Deemed Interest Income From Loans Or Advances To Directors
It is proposed that with effect from the year of assessment 2014, a new Section 140B of Income Tax Act 1967 will deem that the company shall derive interest income from loans or advances granted to the company’s directors from the company’s internally generated funds.
Click here to read the entire report summary.
Summary of Malaysia 2014 Budget
“Strengthening Economic Resilience, Accelerating Transformation And Fulfilling Promises”
Focus on 5 main areas
- Invigorating economic activity;
- Strengthening fiscal management;
- Inculcating excellence in human capital;
- Intensifying urban and rural development; and
- Ensuring the well-being of the Rakyat.
With effect from 1 April 2015, the existing sales tax and service tax be abolished and be replaced with a broad-based consumption tax known as the GST.
Click here to read the entire report summary.
Bad and doubtful debts and their respective treatment
Focus main areas
- Tax deductibility for bad and doubtful debts (Section 30 of Income Tax Act 1967)
- Treatment of recoveries (Section 30 of Income Act 1967)
- Deduction for bad and doubtful debts and treatment of recoveries (Public Ruling No. 1/2002)
Click here to read the entire report summary.
Group Relief
To enhance private sector investment, Group Relief incentive is provided under the Income Tax Act 1967 to all locally incorporated resident companies.With effect from Year of Assessment 2009, the rate of current year losses allowed for set-off for Group Relief was increased to 70%.To be entitled for Group Relief incentive, both the Surrendering and Claimant Company must fulfill the Group Relief conditions / criteria
Click here to read the entire report summary.
Real Property Gain Tax (RPGT)
RPGT is charged on gains arising from the disposal/sale of real properties or shares in Real Property Companies (RPC). A RPC is a controlled company holding real property or shares in another RPC as a major asset, which is defined as valued more than 75% of the value of its total tangible assets.
Click here to read the entire report summary.
“Prospering the Nation, Enhancing Well-Being of the Rakyat: A Promise Fulfilled”
Focus on 5 main areas
- Boosting investment activity;
- Strengthening education and training;
- Inculcating innovation, increasing productivity;
- Fiscal consolidation and enhancing the public service delivery; and
- Enhancing the well-being of the Rakyat.
Click here to read the entire report summary.
Summary of Malaysia 2012 Budget
"National Transformation Policy : Welfare For The People, Well Being For The Nation"
Focus on 5 main areas
1. Accelerating Investment
2. Generating Human Capital Excellence, Creativity And Innovation
3. Rural Transformation Programme
4. Strengthening The Civil Service
5. Easing Inflation And Enhancing The Well-Being Of The Rakyat
Click here to read the entire report summary.
Key Features of the Malaysia Budget 2011 - A Business Perspective
The Budget 2011 emphasizes effort to transform the nation into a developed and high-income economy with inclusive and sustainable development, spearheaded by the private sector. The Budget 2011 has a theme "Transformation Towards a Developed and High-Income Nation" by focusing on the following four key strategies:
1. Reinvigorating private investment;
2. Intensifying human capital development;
3. Enhancing quality of life of Malaysians; and
4. Strengthening public service delivery
Click here to read the entire report
Arris Notes
Arris Notes provide regular updates on interesting areas governed under Malaysia’s Companies Act, 1965 and Company Secretarial Practice in Malaysia.
The Companies Act 2016 was implemented on 31 January 2017 replacing the Companies Act 1965.
We are pleased to provide a summary of the Companies Act 2016 to enlighten changes in the law.
Click here to view summary of the Companies Act 2016
SSM is offering an incentive to reduce the amount of all outstanding compounds/penalties for non-compliance of Companies Act 1965.
This incentive period is until 31 December 2015.
| Payment Period | Reduction Rate* |
| 01 - 31 October 2015 | 70% |
| 01 - 30 November 2015 | 60% |
| 01 - 31 December 2015 | 50% |
*reduction rate is from the original amount of compound, subject to terms and conditions
We strongly encourage Directors to take this opportunity to settle outstanding compounds/penalties quickly with SSM, given the discount offered. The more you delay the more you pay!
Click here to view the media release from Suruhanjaya Syarikat Malaysia (“SSM”) on SSM Incentive Compound Reduction.
You may also check the status for any outstanding compound issued to the Directors and the Company at SSM’s e-compound link, https://www.ssm.com.my/en/e-compound
Arris Notes 13/2013
- summary on Court Winding Up
Arris Notes 11/2013
- summary of “Business Trust (BT) - a new investment vehicle in Malaysia establish under the amended Capital Markets and Services Act 2007”
Arris Notes 10/2012
- summary of “The Market Development Grant- introduced to assist entity understaking export promotional activities”
Arris Notes 7/2012
- summary of “Companies Commission of Malaysia’s enforcement actions on OFFENCES under the Companies Act”
Penalty for company crimes -AN7
Arris Notes 5/2012
- summary of “Section 364 - False and Misleading Statements”
Arris Notes 4/2012
- Summary of the penalties imposed by the Companies Commission of Malaysia (“CCM”) as well as the Inland Revenue Board of Malaysia (“IRB”) for late submission of relevant statutory returns.
Arris Notes 3/2011
- Duty and Liability of Officers - Section 132 of the Companies Act 1965
Arris Notes 1/2011
- Section 133 Loans to Directors
- Section 133A Prohibition of loans to persons connected with Directors
Section 133 & Section 133A CA1965
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Disclaimer: All articles, notes, news and/or information in this page is/are prepared as a service to our valuable clients. No one should act upon the information or refrain from acting, upon the information contained therein without getting appropriate professional advice. Please contact ACT Partners or Arris Group to discuss and address your particular circumstances. ACT Partners, Arris Group, its partners, employees, affiliates and agents do not accept any liability for any loss arising from any action taken or not taken by anyone based on the information contained therein this website.