Boardroom Newsflash : Submission of Income Tax Return Forms (Form C and Form E)

Boardroom Newsflash : Submission of Income Tax Return Forms (Form C and Form E)

The Inland Revenue Board of Malaysia (“IRB”) has made it compulsory for dormant companies and/or companies which have not commenced business in the year ended 2014 to submit the following Income Tax Return Forms (ITRF) within the stipulated dates as stated below:

  1. Return form of Company for Year of Assessment 2014 (Form e-C)
    a) Grace Period for Submission via e-Filing
    – Within eight (8) months from the date following the close of the accounting period.b) Failure to Submit within the Stipulated Date
    – A penalty (equal to treble the amount of that tax) can be imposed under subsection 112(3) of ITA 1967 based on the due date for submission of ITRF.
  2. Return form of Employer for Remuneration for Year 2014 (Form e-E)
    a) Grace Period for Submission via e-Filing
    – Not later than 30 April 2015.b) Failure to Submit within the Stipulated Date
    – A compound (not less than RM200 and not more than RM20,000 or imprisonment not exceeding 6 months or both) can be imposed under paragraph 120(1)(b) of ITA 1967.

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Boardroom Newsflash : SSM offers Incentive for Application to Strike Off Companies

Boardroom Newsflash : SSM offers Incentive for Application to Strike Off Companies

Suruhanjaya Syarikat Malaysia (SSM) has announced an incentive for the application to strike off names of defunct companies which were incorporated between the year of 2010 to 2014, under section 308(1) of the Companies Act 1965 (CA 1965).

The incentive period is from 1 April 2015 to 20 September 2015.

During this period, companies (applicants) with outstanding penalties or compound issued prior to the incentive period will enjoy additional incentives and are only be required to pay :

  1. A flat fee of RM100.00 for each offence committed by the company; and
  2. A flat fee of RM100.00 for each offence committed by each director of the company

Applications can be made at any SSM counters nationwide. A full guide on the application and the application form as below.[document file=”https://www.boardroomlimited.com/my/wp-content/uploads/2015/04/Guideline-for-the-application-under-section-308-INCENTIVE-2015-v1.pdf” width=”1050″ height=”800″]

[document file=”https://www.boardroomlimited.com/my/wp-content/uploads/2015/04/Pemberitahuan-Insentif-Penutupan-Syarikat-Di-Bawah-Seksyen-308-Akta-Syarikat-1965.pdf” width=”1050″ height=”800″]

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Boardroom Newsflash : GST Training, Tax and Secretarial Fees – Income Tax Deduction

Boardroom Newsflash : GST Training, Tax and Secretarial Fees – Income Tax Deduction

As companies are gearing up for the impending launch of the Goods and Services Tax in April this year, there will be inevitable additional training costs and secretarial and tax agent fees, to prepare for the implementation.

To ease the cost impact of these charges, kindly note the following Income Tax Rule 2014, for applicable deduction of the following :

  1. Cost(s) relating to Training for Employees for the implementation of GST> For Year of Assessment 2014 and Year of Assessment 2015
  2. Expenses in relation to Secretarial Fee and Tax Filing Fee> For Year of Assessment 2015 and Year of Assessment 2016> Total amount of deduction allowed for Secretarial Fee shall not exceed RM5,000, for the year of assessment

    > Total amount of deduction allowed for Tax Filing Fee shall not exceed RM10,000, for the year of assessment

Kindly refer to the attached circulars for details.[document file=”https://www.boardroomlimited.com/my/wp-content/uploads/2015/04/BR-Newsflash_GST-training_Income-Tax-Deduction_2014_2015.pdf” width=”1050″ height=”800″]

[document file=”https://www.boardroomlimited.com/my/wp-content/uploads/2015/04/BR-Newsflash_Tax-agent-and-secretarial-fees_Income-Tax-Deduction-2015_2016.pdf” width=”1050″ height=”800″]

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Boardroom Newsflash : Are you ready to submit your GST returns on May 2015

Boardroom Newsflash : Are you ready to submit your GST returns on May 2015

On 25 October 2013, Malaysia’s Minister of Finance announced the implementation of the Goods and Services Tax (GST), set to begin 1 April 2015 with a tax rate of 6%. This introduction of GST represents a total reform of the country’s current single-stage consumption tax system.

Who needs to Register and File GST?

Businesses with an annual sales turnover of more than RM500,000 are required to register for GST with the Royal Malaysian Customs Department by 31 December 2014 and file GST returns with effect from May 2015. Businesses with less than RM500,000 in annual sales turnover could voluntarily register their companies for GST, but will be bound by a two-year registration law, unless they closed their operation and companies during that period.

When is the GST Return due?

The GST reporting frequency depends on the annual turnover of the company. For annual turnover below RM5 million, the frequency of filing is quarterly. Those companies that are achieving annual turnover above RM5 million, the filing frequency will be increased to monthly.

Deadline for filing of the GST Returns and payment of GST is the last day of the month following the taxable period. Example, if the taxable period is April 2015, then the deadline for filing and GST payment shall be 31 May 2015.

What is the Penalty for Filing an Incorrect Return?

• Penalty equal to the GST undercharged

• Fine not exceeding RM50,000; and/ or

• imprisonment not exceeding 3 years;

What should businesses do?

It is important for them to be “GST ready” by 1 April 2015. The necessary processes and controls must be in place and encapsulated in their accounting systems. More importantly, they must display the ability to file GST returns correctly and promptly.

How can we help you to be GST ready?

We assist both local and international clients to manage their compliance with all aspects of the GST system in relation to doing businesses in Malaysia. Our GST services include attending to routine compliance matters to complex transactions arrangements. These services include:

• Preparation and filing of GST returns (Forms GST-03 and GST-04)

• GST procedures manual / checklists

• Customised in-house GST training

• Annual GST health checks

• Application for GST registration

• GST planning and consultancy; and

• GST implementation services

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