Posts

TAX - Special Allowances For Small Value Assets (PR NO. 10/2014)

-
Image
Small Value Assets And Special Allowances Define under 19A(1) Schedule 3 of the ITA - asset is not more than RM2,000 but it does not include assets that have an expected life span of not more than 2 years. - The claim for special allowances for small value assets is restricted to a maximum amount of RM20,000 for each year of assessment.  Prior year tax treatment Options - Claim for special allowances (paragraphs 19A Schedule 3 of ITA) - Claim normal capital allowances (paragraphs 10 and 15, Schedule 3 of ITA) Special Allowances For Small And Medium Companies (19A(3) Schedule 3 of the ITA) - Small and medium companies (SME) where there is no restriction on the total amount of special allowances claimed on small value assets *Paid-up capital in respect of ordinary shares not exceeding RM2.5 million and *Has gross income from a source or sources consisting of business not exceeding fifty million ringgit (RM 50 million) for the basis period for that YA Steps to Claim Special ...
Post a Comment
Read more

TAX - Income From Letting Of Real Property (PR NO. 4/2011)

-
Image
  I ncome From Letting Of Real Property Notes:- - Letting of real property (business sources) - 4(a) ITA 1967 - Letting of real property (non business sources) - 4(d) ITA 1967 Letting of real property (business sources) - 4(a) ITA 1967 - Deemed as a business sources and income received under 4(a) ITA if maintenance services or support services are comprehensive and actively provided.  Maintenance services or support services (comprehensively) should include:- Doing generally all things necessary:- (a) Interior: cleaning services, structural elements maintenance, water tanks, sewers, pipe and etc. (b) Exterior: playing fields, recreational areas, car parks, open spaces, landscape areas, security services As long as maintenance services or support services are comprehensively and actively provided in relation to the real property which is let out, the letting is a business source under paragraph 4(a) of the ITA even though the letting is between related parties. However, ...
Post a Comment
Read more

TAX - Investment Holding Company (PR NO. 10/2015)

-
Image
Investment Holding Company Definition of Investment Holding Company - Main activities - Holding of investment (eg. Dividend, interest and rental - non business sources) - Not less than 80% of gross income (Holding of investment) Tax treatment under 60F(1) ITA Formula: ~ A x B/4C A - Total permitted expenses B - Gross income consisting of dividend, interest and rent chargeable to tax  C - Aggregate gross income Permitted expenses:- - Directors' fees - wages, salaries and allowances - management fee - secretarial, audit and accounting fees, telephone charges, printing and stationary costs and postage; and - rent and other expenses incidental to the maintenance of an office, Definition of "business" holding of investment - Letting of real property and provides maintenance services or support services. *The real of property - owned/rented *Maintenance services or support services - comprehensively and actively provided *Detail can refer to PR No. 4/2011 - Income from lettin...
Post a Comment
Read more

TAX - Entertainment Expenses (PR NO. 4/2015)

-
Image
Entertainment Expenses Definition of Entertainment under Section 18 "Entertainment" includes:- (a) the provision of food, drink, recreation or hospitality of any kind; or (b) the provision of accommodation or travel in connection with or for the purpose of facilitating entertainment of the kind mentioned in paragraph (a) above, by a person or an employee of his, with or without consideration paid whether in cash or in kind, in promoting or in connection with a trade or business carried on by that person. Section 33(1) of Income Tax Act 1967 ("ITA") Section 33(1) provides that for the purposes of determining tax, a person’s (or business’) gross income shall be adjusted by deducting from that source, all outgoings and expenses wholly and exclusively incurred in the production of gross income [1]. In short, when you spend money to earn money, you’re allowed to deduct that cost from the income. Deduction for Entertainment Expense Entertainment expense (section 18) un...
Post a Comment
Read more