Thursday 29 October 2015

Permanent Establishments: The Invisible Threat

Setting up some of your business operations in another country has become a common occurrence for businesses in today's world. Whether it's to expand your markets, or to save on infrastructure costs, businesses do it for a variety of reasons. Singapore companies are no exception, as they constantly look to expand their presence beyond Singapore's borders.

In many cases, companies that have operations overseas end up accidentally creating a Permanent Establishment (PE), which inevitably leads to an unintended tax liability. Even companies who have had previous experience still run into this issue. It's an issue that requires constant attention, and companies should always be ready to tackle the issue should the need arise.

Tuesday 20 October 2015

Need to optimise your transfer pricing models?

Are you:

Having your company's bottom line eroded unnecessarily due to poor transfer pricing management?

Struggling to work out your transfer pricing model strategy?

Having challenges understanding the various transfer pricing regimes and its challenges in India, China, Vietnam and Indonesia?

Seeking to learn how to defend your transfer pricing policies during an audit?

Looking to update yourself on recent developments and global trends on transfer pricing?

If you answered yes to most, if not all of these questions, then you have to join us for the following workshop in November:

"Optimising Transfer Pricing Models in Asia
Developing a Balanced Approach to Complex Requirements"

This workshop takes place on the 18th of November, so sign up now and mark the date on your calendar!

Thursday 15 October 2015

Concept of exemptions


Do you know the expressions “not liable to tax” and “exempt from tax” are not synonymous? The first refers to receipt that does not have the quality of income and thus not assessable, for example a capital receipt. The second expression refers to income that can have the character of income but is specifically excluded from assessable income.

The case of Australian Mutual Provident Fund Society v I.R. Commrs (1961) 3 All E.R. 1,051 referred to these two categories. In deciding in favour of the Commissioners, Lord Devlin at page 1,057 -1,058 said:

“What the Commissioner contends, and what the stipendiary magistrate and the Supreme Court have held, is that the words ‘exempt from taxation’ do not cover income which is not within the reach of the New Zealand tax laws. The point is succinctly put by the stipendiary magistrate when he says: ‘A company cannot be exempt, unless, but for the exemption, it would have been liable.’

The concept of exemptions and information on exempted income are discussed in the Malaysian Tax Reporter and the Malaysian Master Tax Guide Manual. If you wish to out find more, please contact 1800-181-151(Toll Free line ) or email us at mktg@cch.com.my.

Friday 9 October 2015

Countdown to Budget 2016

The Malaysian Prime Minister Datuk Seri Najib Razak is set to unveil the 2016 Budget on 23 October 2015 with the focus on strengthening growth, expanding inclusiveness and ensuring fiscal sustainability. 

Budget 2016 will be a very important budget for Malaysia due to the drop in demand from emerging markets, weakening ringgit, falling crude oil and commodity prices and it is the first budget under the 11th Malaysia Plan. Datuk Seri Najib Razak had invited people to give their suggestions by submitting them to his website najibrazak.com/bajet2016/ before 15 September 2015. Basically, cost of living, urban housing and livelihood, besides education topped the list of Malaysians' concerns.  

In this current situation, people are waiting for the government to take certain steps for the coming year and do hope that the Prime Minister Datuk Seri Najib Razak will listen to the voice and aspirations of all our Malaysian people, the rakyat, for a better Malaysia for all.

                                      

Friday 2 October 2015

GST – The Good, The Bad and The Ugly



By now, most Malaysians would have contributed to the GST. So how are Malaysians faring with being charged an additional 6% for almost anything they buy? We asked a few Malaysians ranging from accountants, average individuals and low income earners on their take on the GST and how they were impacted by it.

One month extension for SST returns and payment of tax

The Royal Malaysian Customs Department (RMCD) has announced a one month extension (until 31 July 2021) for the submission of SST-02 forms an...