Taxation Services in Malaysia
- Corporate Tax Compliance & Planning Services
- Goods and Services Tax (GST)
- Malaysia Certificate of Residence Application (COR)
- Personal Income Tax
- Withholding Tax Services in Malaysia
- E-Stamping
- Tax Clearance Letter Application
- Tax Investigation
- Transfer Pricing in Malaysia
- GST Health Check
Like many other countries, Malaysia has its tax system and is a very tax welcoming country. The tax year runs in accordance with the calendar year, beginning on 1 January and ending on 31 December. All tax returns must be completed and returned before 30 April of the following year. Other than personal income tax, there are different types of taxes in Malaysia, namely corporate tax, property tax, consumption tax, and road tax.
Corporate Tax Compliance & Planning Services
Tax is one of the inevitable parts of a business. As such, the cost of improper or inadequate handling of tax issues could be devastating and might restrict the development of a company. Often, the corporation tax compliance involves a large amount of management time, effort, and costs. At Exotic Assessment Solutions, we provide tailored tax compliance services to meet your business needs, be it an independent tax compliance review, or specific technical advice or a fully outsourced tax compliance service, which will, in turn, allow you to focus more on the core business.
Personal Income Tax
An income tax is a tax imposed on financial income generated by individuals or all entities within their jurisdiction. Every businesses and individual in Malaysia must file their return every year to determine whether they owe any taxes or are eligible for any tax refund. In other words, you are liable to file your return annually if your income is earned or generated from Malaysia. Besides that, income tax is one of the key sources of funds that the government uses to financially support its activities as well as to serve the public.
Withholding Tax Services in Malaysia
Like many other countries, Malaysia imposes withholding taxes on certain payments to non-residents. Withholding tax is an amount that represents the tax portion of an income of a non-resident recipient, withheld by the payer in Malaysia, and it is paid directly to the IRBM. In other words, withholding tax is a mechanism to collect income tax from certain groups of non-residents in Malaysia. Withholding tax will apply to certain payments such as royalty, interest, contract payments, and ‘special classes of income’ made to non-residents.
Tax Clearance Letter Application
As the name goes, the Tax Clearance Letter (Surat Penyelesaian Cukai, SPC) is a certificate or letter from IRBM that will show any tax owe by a taxpayer. In Malaysia, a taxpayer needs to apply for a Tax Clearance Letter if he or she is retiring, leaving employment at the end of a contract, resigning, terminated from his or her employment, or leaving Malaysia for a period exceeding three months. The salary will be released upon receiving the Tax Clearance Letter from IRBM. In addition, when a taxpayer dies, their next of kin needs to apply Tax Clearance Letter. The Tax Clearance Letter applies to both Malaysians and expatriates or foreign Workers.
Tax Investigation
As the name implies, tax investigation is a method of enforcement conducted by the Inland Revenue Board Malaysia (IRBM) to ensure accuracy of tax filing. The aim of tax investigations is to investigate taxpayers who are suspected to be involved in fraud, wilful defraud or negligence in reporting their income. The Director General of Inland Revenue (DGIR), through Income Tax Act of 1967, has the power to put any taxpayer under “Investigation” and “Tax Audit”. Tax offences such as non-compliance and tax evasion will be charged under the Income Tax Act.