Interest Income, Interest Expenses and Remittance of Foreign Interest Income

INTRODUCTION

Interest expenses is a common cost of doing business, and the amount involved is usually significant. In view of this, it is essential to aware of the tax deduction and relevant tax implication. On the other hand, interest receipt may create a source of income for the recipient. Therefore, the timing to bring the receipt to tax must be right.

In addition, Income Tax (restriction on deductibility of interest) (amendment) Rules 2022 has been in placed to govern the excessive interest payment made. This is an effort following the Base Erosion and Profit Shifting (BEPS) Action 4 of the Organisation for Economic Cooperation and Development (OECD).

COURSE OUTLINE

• The Principal Act which govern the taxability and tax deductibility of an interest
• Relevant Public Rulings
• Restriction on deductibility of interest Guidelines
• Tax treatment on the foreign interest income remitted to Malaysia
• Tax cases

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).