Boardroom Newsflash : Amendment of GST rate from 6% to 0%

Boardroom Newsflash : Amendment of GST rate from 6% to 0%

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Boardroom Newsflash : Updates on Companies Act 2016

Boardroom Newsflash : Updates on Companies Act 2016

The Companies Bill 2015 has received the Royal Assent and has been gazetted as the Companies Act 2016 recently. The Companies Commission of Malaysia intends to bring the Companies Act 2016 into force in stages, starting from 1st Quarter 2017 onwards.

Further information can be found at https://themalaysianlawyer.com/2016/09/16/malaysias-companies-act-2016/

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Due date for e-filing of Company’s Income Tax Return (Form C) extended to 30 August 2016 for companies whose financial year ends on 31 December 2015

Due date for e-filing of Company’s Income Tax Return (Form C) extended to 30 August 2016 for companies whose financial year ends on 31 December 2015

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Boardroom Newsflash : Malaysia New Companies Bill Passed – What You Need To Know

Boardroom Newsflash : Malaysia New Companies Bill Passed – What You Need To Know

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Recent updates to the PDPA framework in Malaysia

Recent updates to the PDPA framework in Malaysia

The Personal Data Protection Commissioner has issued the Personal Data Protection Standard 2015 recently. Appended below are some of the recent PDPA updates for your reference.

  1. Standards For Security, Retention and Data Integrity
    Standards in relation to the Security, Retention and Data Integrity principles were issued by the Commissioner on 30 December 2015 and are binding on all data users with immediate effect. The Standards detail specific actions which need to be taken by data users in respect of the Security, Retention and Data Integrity principles and apply to both physical and electronic personal data.Highlights extracted from the Standards include the following:-

    • All staff involved in the processing of personal data need to be registered;
    • The extent of authority of staff accessing personal data for purposes of collecting, processing and retaining personal data should be controlled and limited;
    • The transfer of personal data through removable media devices (e.g. USB thumb drives) and cloud computing services is not allowed unless permitted in writing by officers authorised by the top management of the data user;
    • Any transfer of personal data through removable media devices and cloud computing services will need to be recorded;
    • Contracts must be executed between data users and parties appointed by the data user (data processors) to handle and carry out personal data processing activities;
    • All transfers of personal data via conventional methods, for example by post, by hand, fax etc., must be recorded;
    • Records of disposal of personal data must be maintained and produced upon request by the Commissioner;
    • Personal data collection forms must be disposed within a period of 14 days, unless such forms have legal value (‘nilai perundangan’) to the commercial transaction;
    • Data users are required to prepare a schedule for the disposal of personal data which have not been active for a period of 24 months;
    • Data subjects may be informed about exercises to update personal data, via the data user’s portal or by way of notice displayed on the premises or any other appropriate means.

  2. Data User Forums
    Four Codes of Practice are in the final stages of gaining approval of the Commissioner, i.e. the Codes of Practice of the insurance, banking and finance, communications and energy sectors.The Code of Practice of the insurance sector will likely be approved first, followed by that of the banking and finance as well as communication sectors. We have been informed that upon approval of the said Codes of Practice, the Commissioner will register the relevant Codes of Practice, with the date of formal registration being backdated to the end of December 2015.

    Data users within the respective sectors will need to ensure that the Codes of Practice are fully operationalised and the necessary training is provided to their relevant personnel within the first quarter of 2016 (i.e. by the end of March 2016), with enforcement anticipated to commence from April 2016 onwards.

  3. Compounding Regulations
    The Compounding Regulations are a vital tool of the Commissioner as the said Regulations permit the Commissioner to issue compounds for offences under the PDPA instead of having to establish the data user’s breach of the PDPA in proceedings brought by the Commissioner against the data user.We were informed by the Commissioner that the Compounding Regulations (which has been in the works for more than a year) are near finalisation and should be issued sooner rather than later. With the registration of the Codes of Practice in relation to specific sectors, and the issuance of the Compounding Regulations, data users can expect a very “active” 2016 from a personal data protection perspective.
  4. On-line Registration
    Effective 11th January 2016, the JPDP has made available an online portal for the registration of data users. The online portal may be accessed at http://daftar.pdp.gov.my/login.php
  5. JPDP Registration Renewal
    It is coming to close to two years since the first certificates of registration were issued by the Commissioner. As such, the JPDP has been issuing renewal notices to data users whose certificates of registration are several months away from expiry.

We wish to suggest that while data users are preparing to renew their certificates of registration, data users also conduct a review of their filings with the JPDP and update any information which has changed since the first registration (e.g. the personal data collected, the parties that personal data is disclosed to, the overseas jurisdictions that personal data is sent to). Do note that this is an obligation that needs to be fulfilled by data users.

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JP Morgan Australian Registry Service Provider Survey – 2015

JP Morgan Australian Registry Service Provider Survey – 2015

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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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