BossBoleh

Articles

Learn how to start and properly operate a business in Malaysia. These articles are also useful for new business owners.

Taxation
Are you also STRUGGLING with these Tax Issues?
Posted at: 15-05-2023
Five Common Tax Issues  Taxpayers have many questions pertaining to the numerous tax and non-tax initiatives raised over time. Among those questions, today we will take a look at the five most common ones asked by taxpayers.  Are grants received taxable?  Generally, taxpayers are exempted from tax in respect of income received in relation to… Continue reading Are you also STRUGGLING with these Tax Issues?
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Taxation
Are F&B operators required to charge Service Tax?
Posted at: 14-05-2023
Service Tax: Food and Beverage Did you know? Food and beverage (F&B) operators who have reached the prescribed threshold of having a total turnover in excess of RM1,500,000 for a period of 12 months must be registered under the Service Tax Act 2018, and they must charge service tax on the provision of taxable services… Continue reading Are F&B operators required to charge Service Tax?
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Taxation
Is the compensation for loss of employment taxable?
Posted at: 13-05-2023
Tax Treatment of Compensation for Loss of Employment Picture this scenario:You have been happily employed at ABC Sdn. Bhd. for five years. However, the company has fallen on hard times due to the pandemic. As a consequence, your boss has decided to cease operations and close down the company. You were given a sum of… Continue reading Is the compensation for loss of employment taxable?
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Taxation
Is foreign-source income taxable in Malaysia?
Posted at: 12-05-2023
The Taxability of Foreign-Source Income  Is foreign-source income (FSI) taxable in Malaysia? Malaysia adopts the territorial principle of taxation where income accruing in or derived from Malaysia or received in Malaysia from outside Malaysia shall be chargeable to tax for that year of assessment (YA) in Malaysia pursuant to Section 3 of the Income Tax… Continue reading Is foreign-source income taxable in Malaysia?
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Taxation
What if I made a mistake on income tax return form?
Posted at: 09-05-2023
Amending the Individual Income Tax Return Form  Imagine this: you’re filing your taxes, and right after you click that submit button—oh no—you see an extra zero keyed in, or you could have missed out on some tax reliefs you were actually entitled to. You click away on the LHDN website in a frenzy, only to… Continue reading What if I made a mistake on income tax return form?
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Company Secretary
8 Benefits of Forming a Sdn Bhd in Malaysia
Posted at: 03-05-2023
8 Benefits You Don’t Want to Miss! Discover how forming an Sdn Bhd company in Malaysia can protect your assets, maximize tax savings, increase access to capital funding, streamline employee recruitment, and more. Don’t miss out on the opportunity to take your business to the next level and enjoy the many advantages of the Sdn Bhd corporate structure. Read on to learn more!
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Taxation
Is your business at risk of non-compliance?
Posted at: 29-03-2023
Overview of Transfer Pricing  Transfer pricing generally refers to the intercompany pricing arrangements for the transfer of goods, services, and intangibles between related or associated parties. In an ideal scenario, the transfer price should be the same as the prevailing market price. However, business transactions between associated parties may not always reflect the dynamics of… Continue reading Is your business at risk of non-compliance?
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Taxation
Are Blackpink obliged to pay tax while performing in Malaysia?
Posted at: 27-03-2023
Withholding Tax: Public Entertainer  Do you know what Blackpink, Ariana Grande, and Jacky Cheung have in common when they hold their concert tours in Malaysia?   The answer is their income would be subject to withholding tax (WHT) pursuant to section (s.) 109A of the Income Tax Act (ITA) 1967. In Malaysia, public entertainers who… Continue reading Are Blackpink obliged to pay tax while performing in Malaysia?
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Taxation
Avoid being IRBM’s target: Why is capital statement important?
Posted at: 25-03-2023
Overview of Capital Statement of Individual Tax Payers  Capital Statement is requested by the Inland Revenue Board of Malaysia (IRBM) during a tax investigation to assess if an individual is able to substantiate his or her spending with the income generated. It is a combination of balance sheets and profit and loss accounts of an… Continue reading Avoid being IRBM’s target: Why is capital statement important?
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Taxation
Are you eligible for RPGT Exemption?
Posted at: 23-03-2023
Real Property Gains Tax Exemption The disposal of real property in Malaysia is subject to real property gains tax (RPGT) based on a scale of rates ranging from 0% to 30% depending on the length of time the real property is held. However, there are certain situation where gains from disposal of real property are… Continue reading Are you eligible for RPGT Exemption?
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Taxation
How to utilize business losses to save tax?
Posted at: 21-03-2023
Business Loss Current year adjusted business losses can be used to set off against other income from the aggregate income for that year of assessment in ascertaining its total income. The other types of income such as other businesses, rental income, interest income, employment income, etc. After offsetting the current year losses against the other… Continue reading How to utilize business losses to save tax?
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Taxation
IRBM forms that you may have MISSED OUT!
Posted at: 19-03-2023
Employer’s Statutory Requirement  Being an employer is not an easy job. On top of the daily ins and outs of running a business, employers also have a whole list of statutory requirements to fulfil. The Income Tax Act (ITA) 1967 places an obligation on employers to fill out a list of forms, and failure to… Continue reading IRBM forms that you may have MISSED OUT!
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Taxation
What should an employer do after an employee leaves?
Posted at: 17-03-2023
Personal Tax Clearance Letter  On top of reporting obligations under the Income Tax Act 1967, employers are also responsible for informing the Malaysian Inland Revenue Board (IRB) of an employee’s cessation of employment, retirement, death, or departure from Malaysia for a period exceeding 3 months so that the tax clearance letter (TCL) can be issued. The TCL notifies the employer… Continue reading What should an employer do after an employee leaves?
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Taxation
Loss of Employment? Is the compensation taxable?
Posted at: 15-03-2023
Loss of Employment? Do you know you can get Tax Treatment?  While the recession hasn’t “officially” arrived, Malaysians are still feeling the heat with the rate of retrenchments and budget cuts due to the falling ringgit. If you are unfortunate enough to be laid off and receive the compensation, will this income be taxed? In this… Continue reading Loss of Employment? Is the compensation taxable?
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Taxation
Tax Estimation was NOT done properly?
Posted at: 13-03-2023
What If Tax Estimation Was Not Done Properly?  What are the possible consequences if tax estimation is not done properly? A taxpayer who fails to submit Form CP204 will be liable to pay a fine of not less than RM200 and not more than RM2,000 or to imprisonment for a term no than 6 months,… Continue reading Tax Estimation was NOT done properly?
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Taxation
Who should pay Withholding Tax?
Posted at: 11-03-2023
Withholding Tax on Foreign Service Provider in Malaysia As business owners, we want the best for our businesses. Therefore, sometimes we may enlist the services of foreign providers who are known to be the cream of the crop in their respective industries. When we make payments to these non-resident service providers, something called “withholding tax”… Continue reading Who should pay Withholding Tax?
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Taxation
What if I fail to pay Withholding Tax?
Posted at: 09-03-2023
Consequences of Not Remitting Withholding Tax   When the withholding tax (WHT) is not appropriately deducted and remitted to the Malaysian Inland Revenue Board (HASiL), serious consequences will follow. What Constitutes Non-Compliance? The payer fails to pay WHT at the prescribed rate (whether deducted or not). The payer pays WHT late (not within the period… Continue reading What if I fail to pay Withholding Tax?
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Taxation
NOT all interest expenses are tax deductible!
Posted at: 07-03-2023
Interest Restriction As defined in Public Ruling No. 2/2011, “interest” is the return or compensation for the use or retention by a person of a sum of money belonging to or owed to another.  How does interest restriction work?  If you have taken a loan, you would have interest expenses incurred on the loan obtained. Pursuant to… Continue reading NOT all interest expenses are tax deductible!
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Taxation
Is key-man insurance tax deductible?
Posted at: 05-03-2023
Key-Man Insurance You may have heard of the saying “a company is only as good as its people”. At the end of the day, a business is run by people. Without the pivotal man or woman playing their respective roles in a company, the organisation may face the danger of crumbling apart.   That is… Continue reading Is key-man insurance tax deductible?
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Taxation
Is rental considered a business source of income?
Posted at: 03-03-2023
Income Received From Letting of Real Property Public Ruling No. 12/2018 (PR 12/2018) was issued to clarify the tax treatment on rental income received from the letting of real property. The key difference in tax treatment depends on whether the letting of real property can be deemed as a business source or not.   When… Continue reading Is rental considered a business source of income?
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