Unit trust

- Income from investment activity

- Taxed at 24%
- Beneficiary entitle to claims 110 credit set
- Taxed for income derived from s4c and s4d
- Expenses incurred for each income will be set off against particular income.
- Permitted expenses a*b/4c or 10% of a whichever is lower
- S63b – qce incurred 10%
- Entitle to claim ca if unit trsut are the owner of the asset or letting off the property
- Unabsorbed ca nad loss are disregarded

Real property gain

Disposal value = sale consideration-permitted expenses – incidental expenses

Acquisition price – purchase price + permited expenses – recoveries
Rpgt rate based on the year disposed.
If acquire asset prip\or to 1/1/2013, use market value as at 1/1/2013
Allowable loss are allowd to set off against other disposal asset otrt can be c/f to nest year until
fully utilized.
Conditional contract – disposal date when the asset are sign by the state government
Private residence exmeption-only can claim once. Resident property, occupied or fit for rental
No gain no loss- transfer btwn spouse, gift 3(B)- at least in 75% in the form of sahres, and
transfer within company – para 17(10)(a)
Transfer with same group of compamy
Approval obtain from dgir
Atleast 75% in share form
Improve efficiency of the ioperatins.
Transfer from fixed asset to stock – mv at the date it trasnsfer – subject to rpgt
Disposer submit ckht 1a within 60 days from the disposal date – ckht 3a when no gain no loss
Acquirer – ckht 2a, and ckht 3 if no gain no loss situation.

Resident status
7(1)(A) – resident for more than 182 days or more than that
7(1)(B) – resident less than 182 s=days - linked to or linked by
7(1)(c) – 90 days – 3 out 4 years resident in Malaysia
7(1)(D) – 3 years continuously resident

Sme and non sme estimate tax payable

Sme – within 3 months from the date of its commencement business. Payment mad ein the 6 th
onth by 15th.
Non sme – no need pay etp for 2 basis period. Start to pay etp in 3 basis period.

Etp – 85% from the preceeding tax paid

Revision can be done in 6th or 9 month only
If the revise is less than actual tax payment by 30% subject to tax penalty – 10% from th
underestimate amount.
Changes in date of accounting cp204b

Report to irb 30 date earlier than new accounting date if the date change are earlier than normal
accounting date,
Report to irb 30 earlier than normal accounting date if the date changed are letr than normal
accounting date.

Task audit – provide education to the tax payer – voluntary disclosure

Tax investagae – if there is suspicious of tax fraud

Neutral Wide
Techinal error fraud
Freindley presuure
Search not permitted permitted
Interview on certain key only General – interview the
employers too

Desk audit - Notification from irb that they going to inspect your company – if okay they give a
formal letter. Require to submit to tjhier office

Fir=eld audit – whne they not satisfied with the desk audit they will cum suddenly. Have to
cooperate with then

Time bar – within 5 years from rthe date of submission.

Violuntary disclosre – below 6 months- 10% penalty

After 6 months 35% penalty

Appeal and settlement - irb not satisfied and require u to pay penalty issue from ja and jr –
taxpayer can appeal using from q within 30 days from notice and form n on time extension. If irb
agree with form n, will notify within 18 days

S131 – error and mkstake – made within 5 years from the sunnision of form c. understate or
overstate the expenses. Profits.
S131a – on none error and npon mistakes
S97a – non chargeability – do not affect this year profit but might affect next year profit.

Investment holding company

Dealing Listed unlisted
Business income Deemed business Non business income
income
Expenses – normal Normal rule – Permited expenses –
rule deduction under deduction against a*b/4c or 5% of b
s131. s131
- Permited
 expenses are
not allowed
for deduction
- Common
expenses are
retricted to
its income
Loss Eligble to claim Eligble to claim Not elible to claim

ca Eligble to claim Elible to claim Not eligble to claim

Bone fide anf=d Eligble to c/f loss and Elibgle to claim No eligble to c/f loss
genieune ca unabsorbed ca nad and ca
loss
Sale of instrument Revenue gain Deemed business S4f other incoem
income
Tax rate Twi tier - depend on Two tier Single rate 24%
capital shareholding

Investment holding – incomeare 80% dereived from investment activity

Rental(non business)+rental+ dividend / total income = more than 80% it is a investment holding
company.

Limited liability partnetship

-profits are tax exemopted
- salary and bonus are not tax deductible – but is allowed if stated in llp agrrement – epf, socso
are not allowed
-Llp are resident if it exercise its control and management in Malaysia.
Submit form c within 7 months from closing date

Reit – 50% of the investment income are derived from real property – if 90% of the total income
are distributed, the whole total income are tax exempted. If less tah 90% are taxable-
Tax exempt – company r-24&/ nr -24% - wht 10%
Individual 0wht 10%
Investor 10%