Wednesday 29 April 2015

One month of GST, some reminders for companies!

By tomorrow, it will be 30 days of the implementation of GST in Malaysia. We've seen a lot of discussions and outcries, from the general increase in prices, GST equipment not working properly, the prepaid phone credit outcry and the ongoing service charge saga. Whatever the case, regardless of the respective resolutions and ignoring the political impact, the GST story rumbles on and procedures need to be followed.

As most of you know, the deadline for GST return submission for companies whose annual taxable supplies is RM5 million or more is one month after the taxable period. Does your company fall into this category?

Tuesday 28 April 2015

Cheers for maintaining status quo on EPF savings withdrawal age

The recent controversy on the proposal by Employees Provident Fund (EPF) to increase the retirement savings withdrawal age from 55 to 60 ended with a welcomed announcement by Prime Minister Najib Razak for members to retain the right to make the withdrawal at the age of 55. Any new enhancement by EPF will affect new contributions, if members decide to work beyond the age of 55.

Wednesday 22 April 2015

Singapore Master Tax Guide Handbook 2015/16 (34th Edition) launching soon!

The long anticipated 2015 edition of the WK Singapore Master Tax Guide Handbook will be available for purchase on 25 May 2015!




Monday 20 April 2015

Incentives to be replaced by MITI

If you have been keeping track of the Malaysian Budget, you may recall that Budget 2015 had announced several incentives under the strategy ‘Strengthening Economic Growth’. One of the incentives announced is the incentive for the establishment of principal hub.

Back then in the Budget announcement, there was little information of the incentive apart from being a continuous effort of the Government to increase the number of multinational companies’ global operational centres in Malaysia.

More information has since been provided following the announcement by the Ministry of International Trade and Industry (MITI) on 6 April 2015 and 8 April 2015.

Friday 17 April 2015

Are feasibility studies tax deductible?

This is a good and valid question to consider when incurring such costs. This may be answered in the following case by the Special Commissioners of Income Tax in Ketua Pengarah Hasil Dalam Negeri v Shell Refining Company (FOM) Sdn Bhd.

In this case the taxpayer carried on the business of refining and manufacturing of petroleum products. In the course of its business, it engaged the services of Shell Global Solutions International (SGSI), a related company incorporated in the Netherlands, to study its refinery operations in order to assist the taxpayer in complying with the new emission standards introduced by the Government.

Thursday 16 April 2015

Industrial Building Allowance: School building

The question of who can claim for Industrial Building Allowance (IBA) on school buildings was brought forward in the case of TSD  Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri [(2014):

The appellant’s principal activities were property development, investment in real properties, renting and leasing of real estate. The appellant specifically constructed and owned a building rented out to a private school approved by the Minister of Education. The appellant subjected the annual rental received from the school as its business income under s 4(a) of the Income Tax Act 1967 (the Act).

Wednesday 15 April 2015

Thornton’s Malaysian Tax Commentaries launching soon!

The 6th edition of the popular WK Thornton’s Malaysian Tax Commentaries will be available for purchase on 22 April 2015!


Thornton’s Malaysian Tax Commentaries is an in-depth and up-to-date commentary on the Income Tax Act 1967, Promotion of Investments Act 1986 and Real Property Gains Tax Act 1976. It provides the full text of the law side by side with a detailed commentary on the most important sections. With a wealth of details to help with the interpretation of both straightforward and obscure issues, the book is an invaluable guide for tax practitioners, accountants, lawyers, lecturers and students, and in fact, anybody who needs to understand more about these taxes.

Thursday 9 April 2015

Service charge certs for restaurants and hotels?

Latest news in is that service charge certificates will be issued to restaurants and hotels in the near future.

Apparently the certificate would be somewhat alike to the halal certificate to inform consumers about the specifics of the service charge imposed.

“You can’t say you don’t want to pay if you know (beforehand) the restaurant is charging a 10% service charge on top of the goods and services tax of 6%,” remarked Minister Datuk Seri Hasan Malek from the Domestic Trade, Cooperative and Consumerism Ministry.

The 10% ser­vice charge must be stipulated in the collective agreement between employers and employees before businesses can impose it.

With the backlash over service charges at restaurants following the Goods and Services Tax (GST), a website listing outlets that impose both items on their bills has also been started!


The website, http://check-service-charge.herokuapp.com/ , allows consumers to know beforehand whether a particular restaurant charges service charge, in order to decide whether they would like to eat at that restaurant instead of finding out about it after they receive the bill.

In any case folks, let us hope that with the issuing of the service charge certificates there will be less confusion.

FRSs, the ASC and Wolters Kluwer seminars

As Financial Reporting Standards (FRSs) in Singapore continue to evolve, the Accounting Standards Council (ASC) has been fairly active on the international stage to assist in the development of accounting standards.

 In the past month, as has previously been done, the ASC submitted comment letters to the International Accounting Standards Board (IASB) in respect of two exposure drafts, indicating that Singapore is clearly not content to be a mere follower and just adopt whatever international standards are released. The decision to delay the implementation of IFRS 9 Financial Instruments is another clear example of the ASC keeping the interests of Singapore companies close to its heart.

Wolters Kluwer continues to be involved in assisting accountants in navigating the changing financial reporting landscape. Aside from our online subscriptions and books, we regularly hold accounting seminars to meet accountants’ needs, featuring such well known speakers as Ng Eng Juan and Francis Rowland.



In April alone, we have FOUR workshops to meet the needs of accountants nationwide.

Tuesday 7 April 2015

Book on Financial Instruments launching soon!

If you have always found financial instruments to be a complex and difficult topic, you need a copy of WK's Financial Instruments: Recognition, Measurement, Presentation and Disclosures. The newest edition of the book, written once again by the ever reliable Professor Tan Liong Tong, will be available for purchase on 15 April 2015!



This book addresses the various Standards regarding accounting for financial instruments in Malaysia. The Standards that this book focuses on are MFRS 139 Financial Instruments: Recognition and Measurement, MFRS 132 Presentation, MFRS 7 Financial Instruments: Disclosures and the latest MFRS 9(2014) Financial Instruments (issued in November 2014).

Friday 3 April 2015

Spotlight on Malaysia GST Reporter

We're into the third day of GST implementation in Malaysia, how is your company coming along? If you are a subscriber to our online Malaysia GST Reporter, hope you are making full use of the information and commentary there to optimise your company's operations!

For instance, did you know that since its initial launch, we now have improved Roadmaps at the start of each chapter to help you find what you're looking for?  These Roadmaps are another way of finding the information you're looking for, they contain issues and key questions asked together with the links to find the relevant answers. Check out the following Roadmap under our Input Tax and Output Tax chapter:




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...