Blog

Accounting for intangible assets

Accounting for intangible assets
View Full Size

MPERS vs MFRS : Intangible Assets

In this article, we share the main differences in the accounting requirements for associates under MFRS 138 and Section 18 of MPERS.

Intangible Assets

An item meets the definition of intangible asset if it poses the three criteria:

  • Identifiability.

  • Control over resources.

  • Existence of future economic benefits (or service potential).

An intangible asset is an identifiable non-monetary asset without physical substance. Such an asset is identifiable when it is separable, or when it arises from contractual or other legal rights. Separable assets can be sold, transferred, licensed, etc.

Examples of intangible assets include computer software, licences, trademarks, patents, films, copyrights and import quotas.

Section 18 of MPERS - Intangible Assets

Research and development expenditures should be recognized as expenses.

All internally generated intellectual property should be recognized as an expense.

MFRS 138 - Intangible Assets

Development expenditure of R&D activities that meet the recognition criteria must be capitalize.

All research and other development expenditure are recognized as an expense.

Internally generated intellectual property should not be recognized as an asset.

An entity is to recognise an intangible asset only if the two criteria are met:

1. It is probable that the expected future economic benefits (or service potential) will flow to the entity; and

2. It can measure the cost or fair value of the asset reliably.

MFRS 138 allow an entity to capitalise expenditure from the development phase if it can demonstrate all of the following conditions:

  • The technical feasibility of completing the intangible asset so that it will be available for use or sale.

  • Its intention to complete the asset and use or sell it.

  • Its ability to use or sell the intangible asset.

  • How the intangible asset will generate probable future economic benefits or service potential.

  • The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.

  • Its ability to measure reliably the expenditure attributable to the intangible asset during its development.

MFRS 138 provide an accounting policy choice to subsequently measure an intangible asset either using the cost model or the revaluation model.

MFRS 138 states that intangible assets may have a finite or indefinite useful life. This requires an entity to assess and determine useful life. An intangible asset with indefinite useful life is not amortised but must be tested for impairment annually.

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Accounting in Associates

Accounting in Associates
View Full Size

MPERS vs MFRS : Associates

In this article, we share the main differences in the accounting requirements for associates under MFRS 128 and Section 14 of MPERS.

Associates

Investment in associate refers to the investment in an entity in which the investor has significant influence but does not have full control like a parent and a subsidiary relationship. Usually, the investor has a significant impact when it has 20% to 50% of shares of another entity.

Section 14 of MPERS - Associates

Measure investment in associates

  • The cost model

    Investment is measured at cost less impairment. The quoted associate must be measured at fair value.

  • The equity method

    No exception for temporary investment and for conditions of severe restriction.

  • The fair value model

    Investment is measured at fair value through profit and loss. Any investment which is impracticable to measure fair value must be measured using the cost model.

When an associate becomes a subsidiary or joint venture, a remeasurement is required with gain or loss recognized in P/L account

MFRS 128 - Associates

Measure investment in associates under the equity method in the consolidated financial statements.

No exception for temporary investment and for conditions of severe restriction.

When an associate becomes a subsidiary (not joint venture), a remeasurement is required.

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Accounting in Associates

Accounting in Associates
View Full Size

MPERS vs MFRS : Associates

In this article, we share the main differences in the accounting requirements for associates under MFRS 128 and Section 14 of MPERS.

Associates

Investment in associate refers to the investment in an entity in which the investor has significant influence but does not have full control like a parent and a subsidiary relationship. Usually, the investor has a significant impact when it has 20% to 50% of shares of another entity.

Section 14 of MPERS - Associates

Measure investment in associates

  • The cost model

    Investment is measured at cost less impairment. The quoted associate must be measured at fair value.

  • The equity method

    No exception for temporary investment and for conditions of severe restriction.

  • The fair value model

    Investment is measured at fair value through profit and loss. Any investment which is impracticable to measure fair value must be measured using the cost model.

When an associate becomes a subsidiary or joint venture, a remeasurement is required with gain or loss recognized in P/L account

MFRS 128 - Associates

Measure investment in associates under the equity method in the consolidated financial statements.

No exception for temporary investment and for conditions of severe restriction.

When an associate becomes a subsidiary (not joint venture), a remeasurement is required.

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

How to apply EOT 2022 from SSM?

How to apply EOT 2022 from SSM?
View Full Size

SSM Extension of Time 2022

You can apply for extension of time (EOT) with SSM if you cannot meet the SSM deadline.

Requirement of the Companies Act, 2016

Section 258(1)(a) and 259(1)(a) of CA 2016

A Private Company is required to circulate the audited financial statements within 6 months from the financial year end and submit to SSM within 30 days from the circulation date.

How to apply?

Submit the application form [Section 259(2)] to SSM by filling in the information required

When to submit?

The company is required to submit the EOT application at least 7 days before the last day of circulation period.

What is the information required?

a) Details of the Company

  •  Company name

  •  Registered office address

  •  Company registration number

  •  Telephone, fax number and email address

b) Details of the application

  •  Financial year end

  •  Last date of circulation date

  •  Proposed period of extension

  • (Generally, maximum 90 days)

  •  Reason for application

Application fee

  • RM100 for each segment of EOT application.

  • Payable to SSM

Result of application

  • The application of EOT is subject to SSM approval.

  • SSM will issue a letter informing the applicant of the result of the application.

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

 

 

Market Development Grant - Part 1

Market Development Grant - Part 1
View Full Size

MATRADE - Market Development Grant (MDG) RM300,000

What is MDG?

The Market Development Grant (MDG) is a support initiative in the form of a reimbursable grant. MDG was introduced in 2002 with the objective of assisting exporters in their efforts to promote Malaysian made products or services globally.

The lifetime limit of MDG is RM300,000 and it is specifically formulated for Malaysian SME Companies, Professional Service Providers, Trade and Industry Associations, Chambers of Commerce, Professional Bodies and Co-operatives.

[Note: MDG reimbursements are subject to the availability of the government funds]

What Activities Are Eligible For Grant Funding?

Physical Events

  1. Participation in International Trade Fairs or Exhibitions held in Malaysia/Overseas

  2. Participation in Trade & Investment Missions (TIM) or Export Acceleration Missions (EAM)

  3. Participation in International Conferences Held Overseas

  4. Listing Fees for Made in Malaysia Products in Supermarkets or Hypermarkets or Retail Centres or Boutique Outlets Located Overseas

Virtual Events

  1. Participation in Virtual International Trade Fairs In Malaysia Or Overseas

  2. Participation In Business To Business (B2B) Meetings Related To Virtual Trade Investment Missions And Export Acceleration Missions

Who Is Eligible To Claim For MDG? (please refer to MDG Guidelines)

  1. Small And Medium Enterprises (SMEs)

  2. Professional Service Providers (Sole Proprietor Or Partnership)

  3. Trade & Industry Associations, Chambers Of Commerce Or Professional Bodies

  4. Co-operatives

Source

  1. Market Development Grant (MDG) Physical Events

  1. Market Development Grant (MDG) Virtual Events

This message was brought to you by KTP

Market Development Grant

Market Development Grant
View Full Size
𝐑𝐌𝟑𝟎𝟎𝐤 𝐌𝐀𝐓𝐑𝐀𝐃𝐄 𝐆𝐫𝐚𝐧𝐭 𝐭𝐨 𝐒𝐌𝐄

Marketing Development Grant (MDG) is an export support initiative in the form of a reimbursable grant.

It is eligible for those attend international trade fairs and event to promote Malaysia products or services in current or virtual form.

🎯𝐇𝐨𝐰 𝐜𝐚𝐧 𝐌𝐃𝐆 𝐡𝐞𝐥𝐩?

The marketing team start to arrange for this event.

They book the flight tickets, accommodation, liaise with the organizer, looking for suitable spot and booth and others necessary.

With the assistance of MDG, these expenses are reimbursable!

🎯𝐇𝐨𝐰 𝐝𝐨 𝐀𝐀𝐀 𝐦𝐚𝐤𝐞 𝐭𝐡𝐞 𝐜𝐥𝐚𝐢𝐦?

1) Registered as MATRADE member

The registration is simple, just visit the MATRADE official website as link below:
http://www.matrade.gov.my/…/onli…/register-as-matrade-member

And fill up your company information as required. Registration is free.

2) Make the claim online

AAA can claim the MDG within 30 days from the last date of promotion activity.

The application can be made online: www.matrade.gov.my/mdg

The documentations required is to proof your presence in this events, such as payment trails, flight ticket, exhibitor pass and others.

Please make sure you keep all the documentations and fully utilise the grant!

The maximum claimable amount is depending on types of event you joined. As for AAA, they are eligible for maximum up to RM25k.

Let's hope AAA achieves success in this event and comes back with a big victory!

This message was brought to you by KTP

Accounting for Investment Properties in Malaysia

Accounting for Investment Properties in Malaysia
View Full Size

MPERS vs MFRS : Investment Properties

In this article, we share the main differences in the accounting requirements for investment properties under MFRS 140 and Section 16 of MPERS.

Investment Properties

Investment property is property (land or a building – or part of a building – or both) held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation, or both, rather than for:

  • Use in the production or supply of goods or services, or for administrative purposes; or

  • Sale in the ordinary course of operations.

What is the accounting treatment for investment properties?

Section 16 of MPERS - Investment Properties

If the fair value can be measured reliably without undue cost or effort on an ongoing basis, the IP must be measured at the fair value model.

All other IP must be accounted for as property, plant and equipment using the depreciated cost model in Section 17 Property, Plant and Equipment.

MFRS 140 - Investment Properties

Measured at fair value or depreciated cost model

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Accounting for borrowing cost Malaysia

Accounting for borrowing cost Malaysia
View Full Size

MPERS vs MFRS : Borrowing Cost

In this article, we share the main differences in the accounting requirements for borrowing costs under MFRS 123 and Section 25 of MPERS.

Borrowing Cost :

Borrowing costs are interest and other expenses incurred by an entity concerning the funds borrowed. Borrowing cost includes the following type of costs:

  • Interest on bank borrowings (both short-term and long-term) as well as bank overdrafts.

  • Amortisation of discounts or premiums relating to borrowings.

  • Amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

  • Finance charges in relation to finance leases and service concession arrangements.

  • Exchange differences from foreign currency borrowings, to the extent that they are regarded as an adjustment to interest costs.

  •  

What is the accounting treatment for borrowing costs?

Section 25 of MPERS - Borrowing Cost

Recognise all borrowing costs as an expense in profit or loss in the period they are incurred. The option of capitalising borrowing costs on qualifying

assets are not allowed.

MFRS 123 - Borrowing cost

Borrowing costs that are directly related to a qualifying asset shall be capitalised as part of the cost of that asset.

Borrowing costs directly attributable to the acquisition, construction or production of a 'qualifying asset' (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are included in the cost of the asset.

An entity shall cease capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

MPERS vs MFRS Malaysia

MPERS vs MFRS Malaysia
View Full Size

MPERS vs MFRS : An overview of Accounting Standards in Malaysia

There are 2 types of accounting standards in Malaysia

  1. MPERS : Malaysian Private Entities Reporting Standard

  2. MFRS : Malaysian Financial Reporting Standards

Private Entities

Private entities shall comply with either:

1. Malaysian Private Entities Reporting Standard (MPERS) in their entirety for financial statements. or

2. Malaysian Financial Reporting Standards (MFRS) in their entirety.

A private entity is a private company as defined in section 2 of the Companies Act 2016 that –

  1. is not itself required to prepare or lodge any financial statements under any law administered by the Securities Commission Malaysia or Bank Negara Malaysia; and

  2. is not a subsidiary or associate of, or jointly controlled by, an entity which is required to prepare or lodge any financial statements under any law administered by the Securities Commission Malaysia or Bank Negara Malaysia.

Notwithstanding the above, a private company that is itself, or is a subsidiary or associate of, or jointly controlled by, an entity that is a management company as defined in section 2 of the Interest Schemes Act 2016 is not a private entity.

MPERS vs MFRS

More to come in coming days the comparison MPERS and MFRS

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Investment Tax Allowance Incentive Malaysia

Investment Tax Allowance Incentive Malaysia
View Full Size

Tax Incentives For The Manufacturing Sector : Investment Tax Allowance

The major tax incentives for companies investing in the manufacturing sector are the Pioneer Status and the Investment Tax Allowance.

Qualifying Criteria

Eligibility for Pioneer Status and Investment Tax Allowance is based on certain priorities, including the level of value-added, technology used and industrial linkages.

Eligible activities and products are termed as “promoted activities” or “promoted products”. (See Appendix I: List of Promoted Activities and Products – General)

The company must submit its application to MIDA before commencing operation/production.

(i) Investment Tax Allowance

As an alternative to Pioneer Status, a company may apply for Investment Tax Allowance (ITA).   A company granted ITA is entitled to an allowance of 60% on its qualifying capital expenditure (factory, plant, machinery or other equipment used for the approved project) incurred within five years from the date the first qualifying capital expenditure is incurred.

The company can offset this allowance against 70% of its statutory income for each year of assessment. The remaining 30% of its statutory income will be taxed at the prevailing company tax rate.

Any unutilised allowance can be carried forward to subsequent years until fully utilised. 

Applications should be submitted to MIDA.

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks



 



 

Pioneer Status Incentive

Pioneer Status Incentive
View Full Size

Tax Incentives For The Manufacturing Sector : Pioneer Status

The major tax incentives for companies investing in the manufacturing sector are the Pioneer Status and the Investment Tax Allowance.

Qualifying Criteria

Eligibility for Pioneer Status and Investment Tax Allowance is based on certain priorities, including the level of value-added, technology used and industrial linkages.

Eligible activities and products are termed as “promoted activities” or “promoted products”. (See Appendix I: List of Promoted Activities and Products – General)

The company must submit its application to MIDA before commencing operation/production.

(i) Pioneer Status

A company granted Pioneer Status (PS) enjoys a five year partial exemption from the payment of income tax. It pays tax on 30% of its statutory income*, with the exemption period commencing from its Production Day (defined as the day its production level reaches 30% of its capacity).

Unabsorbed capital allowances incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company. Accumulated losses incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company for a period of seven consecutive years.

Applications for Pioneer Status should be submitted to MIDA.

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

Overview of The Malaysian Financial Reporting Standards (MFRS)

Overview of The Malaysian Financial Reporting Standards (MFRS)
View Full Size

The Malaysian Financial Reporting Standards (MFRS)

Accounting Standards Malaysia

There are three types of approved accounting standards here in Malaysia:

  • The Malaysian Financial Reporting Standards (MFRS) – This is the MASB approved accounting standards for entities, but this does not include private entities

  • Private Entity Reporting Standards (PERS) – This is the MASB approved accounting standards for all private entities. However, this has been withdrawn effective 1 January 2016.

  • Malaysian Private Entities Reporting Standards (MPERS) – This replaces the previous PERS and is in effect from 1 January 2016.

MFRS

Entities Other Than Private Entities shall apply the MFRS framework for annual periods beginning on or after 1 January 2012, with the exception of entities that are permitted in the alternative to apply the Financial Reporting Standards (FRS) framework.

The Malaysian Financial Reporting Standards (MFRS) framework was introduced by the Malaysian Accounting Standards Board (MASB) and came into effect on 1 January 2012.

It is fully compliant with the International Financial Reporting Standards (IFRS) framework, which enhances the credibility and transparency of financial reporting in Malaysia.

The numbering of the MFRS corresponds with the equivalent IFRS Standard issued by the IASB. MFRS prefix with “1xx” corresponds with the equivalent IAS.

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks



 



 

Case Study : Tax incentives on the manufacturing of animal feeds from MIDA ?

Case Study : Tax incentives on the manufacturing of animal feeds from MIDA ?
View Full Size

How to apply tax incentives on the manufacturing of animal feeds from MIDA ?

Tax Incentive Application for Animal Feed Ingredients

Under the Promotion of Investments Act 1986, Small Scale Manufacturing Companies are eligible for the following tax incentives for manufacturing promoted products or activities:

a) Pioneer Status with a full tax exemption for 5 years, or

b) Investment Tax Allowance can be offset against 100% of statutory income for 5 years of assessments.

 

Besides, the Company needs to full fill the SME definition as follows to apply this tax incentive:

a) Companies with shareholders’ funds of up to RM500,000 with at least 60% Malaysian equity

b) Companies with shareholders’ funds of above RM500,000 and not exceeding RM2.5 million with 100% Malaysian equity.

Scenario

XYZ Sdn Bhd (Name changed to protect the privacy of the Company) is a new transfer client to the KTP Group of Companies. During the discussion with directors, we understand that the Company has the intention to manufacture animal feed supplements. The supplements will help the cows to produce more milk.

Thus, we have studied and identified the tax incentive for this business nature. Manufacturing animal feed is one of the promoted activities listed under Small Scale Manufacturing Companies (Appendix III).

Struggles

Firstly, we have contacted the MIDA officer to confirm manufacturing of animal supplements is fall under animal feed ingredients.

Following that we have arranged a virtual meeting with the MIDA officer and the Company directors. Prior to the meeting, the MIDA officer asks for some details as follows for an initial discussion with the client.

The information required such as:

a) shareholders fund and

b) employment,

c) project cost,

d) raw materials and

e) process flow chart.

Solution

After providing the details, the officer has further studied in detail and guided us on the application of the tax incentive to the next steps.

Source:

http://www.ctim.org.my/file/news/15/00141_Tax%20Incentive%20for%20Small%20Scale%20Manufacturing%20Companies.pdf

https://www.mida.gov.my/wp-content/uploads/2020/12/20200425151042_Appendix20III20Small20Company.pdf

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks



 



 

Should I declare rental income in Malaysia

Should I declare rental income in Malaysia
View Full Size

What happen if you don’t declare rental income?

Omission of Rental Income

Any person who makes an incorrect return by omitting or understating any income.

Penalty

S113(1)(a) of the Income Tax Act

Make an incorrect return by omitting or understating any income

RM1,000 to RM10,000 and 200% of tax undercharged

 

S113(1)(b) of the Income Tax Act

Give any incorrect information affecting the tax liability

RM1,000 to RM10,000 and 200% of tax undercharged

 

S114 of the Income Tax Act

Wilfully and intent to evade or assist any other person to evade tax

RM1,000 to RM20,000 or imprisonment not exceeding 3 years and 200% of tax undercharged

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks



 



 


The exemption of foreign source income - what next

The exemption of foreign source income - what next
View Full Size

Confusion on the exemption of foreign source income

On 31st December 2022, our government has agreed to exempt taxation on foreign source income (FSI) for resident taxpayers to ensure the smooth implementation of the tax initiative, said the Ministry of Finance (MoF).

The tax exemption is effective from Jan 1, 2022 to Dec 31, 2026.

Subject to Inland Revenue Board criteria and guidelines, income tax exemption on dividends will be given to companies or limited liability partnerships while individuals will be tax-exempted for all types of income.

Exclusion on the exemption

The exemption on foreign source income does not apply to company that receives income from renting properties overseas, interest income and royalty income.

These incomes will be subjected to Malaysia tax upon remittance into Malaysia.

Double Tax Relief

Relief from double taxation can be provided under two ways namely exemption method and tax credit method. Under the exemption method, specific income is taxed in one of the two countries and exempted in another country.

If the Malaysian company suffered tax on the rental/interest/royalty income which is remitted into Malaysia, a taxpayer can claim double tax relief under Section 132 or single tax relief under Section 133.

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks


 


 

Changes of Form C Year Assessment 2022

Changes of Form C Year Assessment 2022
View Full Size

(Update) Changes of Form C Year Assessment 2022

1. Income from the source of business(es) and partnership(s) outside Malaysia received in Malaysia effective from 01.07.2022 – Item A2, A7, A20

Aggregate statutory income from sources of business(es) and partnership(s) outside Malaysia received in Malaysia effective from 01.07.2022

Effective from 1 January 2022, the exemption given to Malaysian residents on income from sources outside Malaysia received in Malaysia under paragraph 28, Schedule 6, ITA 1967 has been withdrawn. Income from sources outside Malaysia which is remitted to Malaysia by a resident whether active or passive other than from sources arising from operations carried on in Malaysia, is subject to income tax.

Special guidelines related to tax treatment for income from sources outside Malaysia received in Malaysia will be published on the IRBM Official Portal.

This item must be filled in by a resident company that remits business and/or partnership income from sources outside Malaysia to Malaysia effective from 1 July 2022.

 

2. Apportionment of Chargeable – Item B2a – B2g

Cukai Makmur – 33% - Companies with taxable income exceeding RM100 million for the basis period for the year of assessment 2022 other than companies subject to the tax rate under paragraph 2A of Part I of Schedule 1.

 

3. Particulars of Schedule 7A allowance – Item C3 & C4

The company is eligible to claim RA PENJANA and extension of RA PENJANA if it incurred an eligible expenditure during the Year of Assessment 2020 to 2024 in accordance with the provisions of paragraphs 2B and 4C of Schedule 7A of ITA 1967.

Eligible expenditure incurred in the Year of Assessment 2019 (if any) is not entitled for RA in Year of Assessment 2019.

Nevertheless, a separate calculation needs to be made between the RA PENJANA and the ordinary / extension of RA ending in the Year of Assessment 2018. The calculation of the seven (7) year restriction of unabsorbed RA PENJANA will commence in the Year of Assessment 2025 and will end in the Year of Assessment 2031. Balance of unabsorbed RA PENJANA will be disregarded from the Year of Assessment 2032.

 

4. CLAIM FOR LOSSES – Part E

From 7 consecutive years to 10 consecutive years.

With effect from the Year of Assessment 2019, unabsorbed current year losses are only allowed for carrying forward to be absorbed for a maximum period of up to ten (10) consecutive years [Subsection 44(5F)].

 

5. Carries out controlled transactions under sections 139 and 140A – Item F8

More information need to fill in
 

6. Made payments in the basis period which are subject to withholding tax under sections 107A, 107D, 109, 109A, 109B, 109E, 109F and 109G – Item G2

Tax deduction of 2% under section 107D - Payments made in cash by the paying company to appointed agents, dealers or distributors who are resident individuals.

Withholding tax rate:

Tax deductions at a rate of 2% is applicable for payment made in the form of cash to agents, distributors or distributors in the current year.

Such tax deduction is only applicable if the total amount of payment, whether in cash or non-cash, made by the paying company to the agents, dealers or distributors in the previous year exceeds RM100,000.

7. Carry on e-Commerce – Item G4a

A company is considered to be engaged in e-commerce business if the business operations are included in the e-commerce business model as in the table below.

This business model is a general guide for taxpayers.

For more information, please refer to the Guidelines on Taxation of Electronic Commerce Transactions dated 13th May 2019

guidelines_e_commerce_13052019.pdf (hasil.gov.my)

8. Website / social media address – Item G4b

Previously mention “Website/blog address (if any). Now change to “address of the website / social media that is used to conduct the business (if any)”.

9. Particulars of auditors – Item Part H

Income tax no. of the firm - Income tax number of the audit firm as registered with IRBM.

10. Particulars of the Tax Agent and signature of the person who completes this return form.

Income tax no. of the firm - Income tax number of the tax agent’s firm as registered with IRBM..

11. Declaration - Amendments in the declaration

If this return form is prepared based on the liquidator’s account in accordance with the requirements under the Companies Act 2016 (If item 6 = 3), fill in ‘3’ in the relevant box.

大家为什么辞职? Part 2

大家为什么辞职? Part 2
View Full Size

大家为什么辞职? Part 2

会计师是个特殊的群体，我接触过的HR人都这样讲，都来问我这样一个会计师出身的管理者一个问题：会计师那么难沟通？他们到底在想什么？

根据我们20年++的经验，这些奇葩辞职理由，分分钟让你笑出腹肌!

  1. 女生太少

  2. 公司太大

  3. 因为 冷气 too 冷

  4. 我家猫快生了

  5. 算命师说辞就辞

  6. 决定到对面公司做卧底

  7. 回家减肥

  8. 我要拯救世界

  9. 女生太多

  10. 我对面家的狗生了

  11. 维护宇宙和平

  12. 公司太小

  13. 找不到公司的路

  14. 朋友们都结婚了,我也想结婚

  15. 消化不了老板画的大饼

  16. 没有谈恋爱的机会

  17. 世界那么大想去外面看看

  18. 老板没有料

  19. 老板太凶了

准备好找份新工作了吗？欢迎立即联系 careers@ktp.com.my

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Tax Information Collection Program Malaysia

Tax Information Collection Program Malaysia
View Full Size

IRBM Information Collection Program

Overview

Do you know that LHDNM has a program called Information Collection Program?

This program is to collect the data of multiple sources of income, purchases, and ownership of assets, association/club memberships, and others.

Therefore, if you have received the notice/letter under Section 81 of the Income Tax Act 1967, it is compulsory to submit the information to LHDNM within 30 days from the date of the notice/letter.

Key takeaways:

You will understand the objective and consequence as follows: --

1. What is the objective of the program?

2. Who is required to submit the information?

3. What types of information are to be provided?

4. When is the deadline for submission?

5. What are the consequences of non-compliance?

Summary of learning

1. What is the objective of the program?

- To provide the information for tax base expansion and support the enforcement and compliance activities conducted by LHDNM.

2. Who is required to submit the information?

- Government agencies, private companies and individuals.

3. What types of information are to be provided?

- Information on payment to insurance agents/distributors/wholesalers/broker, part-time authors/ stringers/ instructors and etc

- License or rental payment made for liquor business, day/night market, tenants/ owners of retail space/lots and etc

- Petrol stations business: total sales and supply of fuel in quantity (in Litre) and value (in RM).

- Buyer information on acquiring services such as vacation packages, luxury vehicle rental, spa and beautician services and others.

- Information of members of associations and organizations

- Information on real-estate assets owners

- Information on the owner of new buildings/homes (residential or shop houses, office buildings or etc)

- Buyer information on acquiring cars or vehicles

4. When is the deadline for submission?

- 30 days from the date of the notice.

- If a longer time is needed, an application to extend the submission time can be made to the relevant LHDNM Branch.

5. What are the consequences of non-compliance?

- A RM200.00 – RM20,000.00 fine or imprisonment for a term not exceeding six months of both.

Sources

Information Collection Program - https://bit.ly/3sO7xX1

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Accounting for lease under MPERS Section 20

Accounting for lease under MPERS Section 20
View Full Size

Finance lease vs Operating lease under MPERS Section 20

What is Lease?

An agreement stated the transfer of an asset with the right of use by a lessor to a lessee.

There are two types of leases which are

- Finance lease

- Operating lease

Differences between a finance lease and an operating lease?

Classification of Finance lease:

- Ownership of the asset will be transferred to the lessee by the end of the lease term.

- Lease term is for the major part of the useful life of the asset even if the title is not transferred.

- Lessee has the option to purchase the asset at a lower price compared to the fair value.

- Present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset.

- Leased assets have specialised nature that only the lessee can use without major modifications.

Classification of Operating lease:

- Lease does not transfer substantially all risks and rewards incidental to ownership.

Recognition and measurement for a lessee - Finance lease

Statement of Financial Position – Assets and Liabilities

- Recognise as assets and liabilities at amounts equal to:-

o the fair value of the assets; or

o if lower, the present value of the minimum lease payments

- Initial direct costs of the lessee are added to the amount recognised as an asset

- Using the effective interest method to reduce the outstanding liability

Statement of Comprehensive Income - Expenses

- Depreciate the asset according to lease term or useful life

- Finance charges of each period during the lease term

Operating lease

- Recognise lease payments as an expense over the lease term on a straight-line basis

Disclosure for lessee

Finance lease

- Carrying amount of the asset

- Amount of future minimum lease payment.

i) Not later than one year

ii) Later than one year and not later than five years

iii) Later than five years

Operating lease

- Amount of future minimum lease payment under non-cancellable operating leases ：

i) Not later than one year

ii) Later than one year and not later than five years

iii) Later than five years

- Lease payment is recognised as an expense.

Source:

MPERS 20 Leases

https://bit.ly/3wEJJXO

 

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Residential Tenancy Act Malaysia

Residential Tenancy Act Malaysia
View Full Size

What is Residential Tenancy Act Malaysia?

The proposed Residential Tenancy Act (RTA) by the Ministry of Housing and Local Government (KPKT) will change the rental market in Malaysia.

There is no specific legal framework for landlords and tenants in Malaysia now.

 

The Objectives of RTA are to :

  1. protect homeowners’ and tenants’ rights.

  2. prepare a uniform template for the residential tenancy agreement.

  3. establish a tribunal to resolve disputes between homeowners and tenants.

  4. set a notice period for tenants to move out.

 

Security and Utility Deposits

An RTA proposes a two-month deposit and a one-month utility deposit.

An RTA proposes deposits to be “parked” with a government agency.

This is to ensure that the authorities would be able to address any conflict between landlords and tenants later on.

In the event that no other expenses have been incurred, the security deposit would then be returned to the tenant once the tenancy agreement expires.

Concerns

  1. Why park the deposits received with a government agency?

  2. How long will the agency refund the deposit upon termination/expiration of tenancy period?

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

10111213141516171819

 

THK Group of Companies THK Management Advisory Sdn Bhd 200401000220 (638723­X) THK Secretarial PLT 202304003367 (LLP0037327-LGN)

Wisma THK, No. 41, 41-01, 41-02, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru, Johor, Malaysia.
+6012-771 7903 (Secretary Department)
+6012-771 7803 (Account Department)
+607-361 3443

QUICK LINK

 

PDPA Form

 
 
 
© 2020 - 2024 THK Management Advisory Sdn Bhd      200401000220 (638723-X) | Privacy Policy
Visitors: 845616
Powered by NEWPAGES
Switch to Mobile Version
Subscribe Newsletter