Business Taxation for Corporate on Chargeability of Income, Tax Deduction of Expenses and Tax Administration

INTRODUCTION

For corporate taxpayers doing business in Malaysia, it is important to understand the tax principal pertaining to business taxation. This helps in tax planning and allocation of resources in managing the tax compliance matters.

In Malaysia, income tax is imposed under Section 4(a) of the Income Tax Act, 1967, on the gain or profits of business derived from Malaysia. Besides, income tax also imposed on the remittance of foreign income by corporate. On top of income generated, tax deductibility for business expenses incurred also crucial in determining the quantum of business profit which is subject to tax. Any non-compliance of taxation in Malaysia would normally attract penalty/fine by the revenue authority.

COURSE OUTLINE

• Scope of charge, classes of business income, revenue income v capital receipts, badges of trade;

• Derivation of income, recognition of income, remittance of foreign income;

• Tax deduction for business expenses;

• Relevant public rulings on tax deduction; and

• Tax administration

PROFILE(s)

Ho Yi Hui has over 20 years’ experience in tax compliance and tax advisory assignments. She is now an Executive Director of Hanz Consulting Group Sdn Bhd (“Hanz”). Before joining Hanz, she worked with BDO Tax Services Sdn Bhd (“BDO”) and RSM Tax Services Sdn Bhd (“RSM”). As an Executive Tax Director of BDO and RSM, she has been involved in the provision of tax compliance matters of public listed companies, multinationals and medium to large private companies. She has handled tax matters for corporations of various sizes involved in construction, property development, hotels, insurance, and manufacturing. Since 2009, she has been extensively involved in representing tax payers in resolving tax audit and tax investigation cases with the Malaysian Inland Revenue Board. In addition, she has assisted clients in the preparation of transfer pricing documentation. She is a fellow member of the Association of Chartered Certified Accountants (ACCA). Apart from this; she is a licensed tax agent under Section 153 of the Income Tax Act, 1967 and licensed GST Tax Agent under Section 170 of the GST Tax Act 2014. She is also a professional trainer certified by the Human Resources Development Fund (HRDF).