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Foreigners earning taxable Malaysian rental

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The net rental is taxable at a flat rate of 28% income tax after deduction for loan finance interest, assessment, quit rent, insurance, repairs, maintenance, service charges and sinking fund payments. The annual tax filing is via the Form M to the Inland Revenue Non-Resident Branch. If the Malaysian property is disposed and capital gains […]

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New Lifestyle Tax Relief from YA2017

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This new personal tax relief of RM2,500 per year combines the previous annual reliefs like the book & magazine relief of RM1,000, sports equipment relief of RM300 and a personal computer of RM3,000 once in three years. This new lifestyle tax relief is expanded to include the purchase of a smartphone or tablet, internet subscription […]

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Dormant Companies Penalties

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We are seeing a rise in the number of penalties issued by the IRB for various non-compliances by dormant companies. Directors of such companies should realize that though the companies are inactive with no business operations, the IRB now requires dormant companies to file annual corporate tax returns Form e-C and file the annual Employer’s […]

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DIDO & Tax Residency

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What is a DIDO? It is a schedule of DAYS-IN-DAYS-OUT, extracted from an expatriate’s passport for a calendar year. The DIDO tells the number of days an expat is physically present in Malaysia whether he is a tax resident or non-tax resident for that year of assessment. To be taxed as a non-resident means substantial […]

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Corporate Restructuring & Savings

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In any corporate restructuring, there are substantial transaction costs involved. It is therefore beneficial to early and quickly identify possible savings from available exemptions or reliefs. For example, in share or property transfers within a group of companies, there is the Section 15A stamp duty relief for transfers between associated companies. Section 15 duty relief […]