Blog

KL Management Services official blog, with recent updates of various services for credit control, debt recovery & management, accounting & taxation, legal compliances, Malaysian taxation updates and so forth.

Initial Public Offering (“IPO”) – An Introduction

Posted in Blog, Finance

Initial Public Offering (“IPO”) – An Introduction

What does IPO mean? It refers to the process of offering shares of a privately-owned company for sale to the general public. The first time these shares are offered is called IPO. There are various reasons as to why a company wants to go for IPO, where the more common ones as follows:- 1. Fund raising Many times when a private owned company wants to raise funds, the financial institutions will insist on collaterals and guarantees, and therefore, the amounts of funds to raise will be limited to the size of the collateral. In the case of IPO, the funds that can be raised will be determined by...

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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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Recommended Audit Fee in Malaysia

Posted in Blog, Business

Recommended Audit Fee in Malaysia

Recommended Audit Fee in Malaysia The Malaysian Institute of Accountants (“MIA”), had in 2010, issued a Recommended Practice Guide 7 (Revised) on the charging of audit fees.  This is a replacement to the earlier practice guide issue in 2007.  All auditors in Malaysia are required to abide by this practice guide. Purpose The MIA issued this Practice Guide because of the following reasons:- Increased in compliance burden due to higher auditing standards requirements Increased in operating costs, mainly salaries To ensure auditors professionalism are not affected due to “price wars” among...

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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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Malaysia’s Budget 2011

Posted in Blog, Business

Following KLM’s extremely popular article, Malaysia’s Budget 2010, we’re bringing you new highlights of Malaysia’s 2011 Budget this year. For the year 2011, there are some notable changes that the Rakyat should look at. Personal & People’s Budget 2011 Exemption on sales tax for all Mobile Phones Service tax raised from 5% to 6% Service tax imposed on paid television broadcasting services (e.g. Astro) Excise duty exemption on National Vehicles, purchased by the disabled, to be raised from 50% to 100% Tax relief of RM5,000 to be extended for employ caretakers...

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Property Investment via Company Ownership

Posted in Blog, Business

With the recent trend in rising property prices, many people have started investing in properties, mainly residential, for rental and/or capital appreciation. Property investments were previously accessible to the richer and older individuals who have substantial savings, but now, with innovative financing packages offered by banks and developers, buying properties by young adults are made possible. In the recent 10 years, there have been many investment gurus who came to teach, especially employees and young individuals, how to invest in properties to create retirement income, or more...

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