Finance

Introduction to Withholding Tax

Posted in Blog, Finance

Introduction to Withholding Tax

Introduction to Withholding Tax As the name goes, Withholding tax means an amount, representing the tax portion of an income of a non-resident recipient, withheld by the payer in Malaysia, and paid directly to the Inland Revenue Board of Malaysia. The above sounds very confusing.  Let’s dissect the paragraph into smaller parts to get a better understanding:- Tax portion of income:  There is a specific tax rate for specific purpose of such income. Non-resident recipient:  In simplicity form, these are service providers who do not operate within Malaysia. Payer:  An individual/body carrying on...

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Offshore Company – Legal Benefits

Posted in Blog, Finance

Offshore Company – Legal Benefits

This article is for general informational purposes only. It must not be used as a consideration for decision making purposes due to specific nature of different businesses. We recommend that you contact us for a non-obligatory consultation before making any decision in such exercise. Businesses in the US and Europe have long been using offshore companies for tax planning measures. However, there are certain groups of people/companies have abused this tax planning tool to perform fraudulent measures such as money laundering, drug and arms smuggling, etc. Such companies are a taboo to Asians...

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Goods & Services Tax (GST) in Malaysia, 2010

Posted in Blog, Finance

Goods and Services Tax in Malaysia At the end of 2009, Malaysia’s prime minister Datuk Seri Najib Tun Razak announced that a bill on the proposed introduction of Goods and Services Tax (“GST”) will be tabled at this year’s Budget 2010. Some indicated expectations about GST are as followed: GST is to be implemented from the 3rd quarter of 2011; The rate is set at 4%; and GST is applicable to all businesses with turnover above RM500,000. What is GST? GST is to set to replace the current Sales Tax and Service Tax systems in Malaysia and it is a multi-tier consumption tax; which simply...

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PN16: Cash Criteron

Posted in Blog, Business, Finance

When a listed company has cash and short term investments, making up at least 70% of its consolidated assets (this condition is referred to as “Cash Criterion”), it has to notify Bursa Malaysia immediately. Bursa will determine if this company is considered a “Cash Company”. In most cases, the listed company will need to determine if it will trigger Cash Criterion when it disposes a major part of its group assets or core businesses. While the definition of cash is easily understood, short term investments are those investments that are by their nature readily realizable and intended to be...

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PN17: Listed Companies in Financial Distress

Posted in Blog, Business, Finance

What is PN17? In this article, I will talk about on listed companies that are classified as PN17. PN17 stands for Practice Note 17/2005 and is issued by Bursa Malaysia; relating to companies that are in financial distress. Companies that fall within the definition of PN17 will need to submit their proposal to the Approving Authority to restructure and revive the company in order to maintain the listing status. While there are more than a thousand companies listed in Bursa Malaysia, not all of them are in a financially sound position. Although at the point of listing, these listed companies...

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Bursa Malaysia – The ACE Market

Posted in Blog, Business, Finance

To strengthen the position of Bursa Securities as a conducive capital raising destination, the enhanced framework of the MESDAQ Market will be known as ACE Market effective 3 August 2009. Under the enhanced framework of the ACE Market, there will be certain streamlining of regulatory functions such as:- Securities Commission (“SC”) will continue to register prospectuses of companies seeking listing in ACE Market to ensure adequate disclosures to the investors; SC’s approval, however, is not required where companies are seeking listing on the ACE Market and subsequent proposals of listed...

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