Submission of Income Tax Return Vide Mobile Devices [M-filing]

Every Malaysian tax residents (who do not carry on a business) can now submit their tax returns (Form BE) by using their smart phones (M-Filing). Further details of supported mobile devices can be view on the Inland Revenue Board of Malaysia's website. The deadline for Form BE submission is by 30th April.

LIMITED LIABILITY PARTNERSHIPS ACT 2012: ACT 743

On 9 February 2012 the Limited Liability Partnerships Act 2012 was gazetted. 

The Limited Liability Partnerships, a new business concept in Malaysia, was created as a hybrid vehicle with features of a partnership and a private limited entity. Act 743 defines the fundamentals of a Limited Liability Partnership and regulate its formation, registration, management and enforcement.

Non-executive directors are a special group of taxpayers

COMPANY non-executive directors are a special breed of taxpayers under our tax laws. They are treated differently from their position recognized in contract law. Directors are not employees; they do not have a master-servant relationship with the company of which they are directors. So non-executive directors should be in no doubt that the tax man would seek to tax many, if not all the benefits which they receive as directors. The benefits are becoming more varied, with levels of remuneration packages increasing. Public companies generally make payments to their non-executive directors in some of the following forms:

1. Director fees are generally fixed to motivate responsibility and Meeting fees are paid to encourage participation. Both fees are taxable in full. A recent change in the law allows the fees to be taxed in the year they are received rather than in the year for which they are paid.
2. Fees received from a foreign tax resident company are not taxable on the basis of it being foreign income. Exceptionally a Malaysian incorporated company can be tax resident outside Malaysia if it is managed and controlled from outside the country.
3. Ex-post and ex-gratia payments are made to recognise long service and substantial contributions. These are taxable in full unless they meet the criteria of “retirement gratuities”.
4. Stock awards paid to cultivate a longer-term perspective and sense of belonging are taxable on the market value of the stocks.

In certain instances, the use of a personal service company of the director to receive the fees could be used to benefit from the lower 20% rate. However care should be taken in structuring this to avoid challenge as a tax avoidance arrangement.

Source: http://biz.thestar.com.my/news/story.asp?file=/2011/1/19/business/7815369&sec=business

10.11.2010 E Lejar for Individual

Latest online application released by Inland Revenue Board, Malaysia: e-LEJAR

The facilities for taxpayers to check on their : 
• Personal details 
• Ledger transaction 
• The current tax balance position 

Budget 2011 Talk in collaboration with the Institute of Commercial and Industrial Accountants Malaysia and the Penang Chinese Chamber of Commerce