KKHO Taxation

Services We Provide:

  • Corporate Tax Compliance & Planning Services
  • Goods & Services Tax (GST)
  • Malaysia Certificate of Residence Application (COR)
  • Personal Income Tax
  • Withholding Tax Services in Malaysia
  • E-Stamping
  • Tax Clearance Letter Application
  • Tax Investigation
  • Transfer Pricing in Malaysia
  • Sales and Service Tax (SST) 

Why is Malaysia considered a tax-friendly country?

  • Like other countries, Malaysia’s tax system is favorable, making it attractive for businesses.
  • The tax year in Malaysia runs from 1 January to 31 December, and tax returns must be submitted by 30 April of the following year.
  • Malaysia imposes various taxes, such as personal income tax, corporate tax, property tax, consumption tax, and road tax.

Corporate Tax Compliance & Planning Services

  • Effective tax management is essential for business success, as mishandling taxes can lead to severe consequences and hinder growth.
  • Corporate tax compliance requires significant management resources, time, and expenses.
  • At KK HO & CO (AF001948), we offer customized tax compliance services to meet specific business needs.
  • Services include independent tax compliance reviews, specialized technical advice, and comprehensive outsourced tax compliance.
  • The goal is to alleviate tax burdens, allowing businesses to focus on core activities.

Goods and Service Tax (GST)

  • Implemented in April 2015, KKHO recognizes GST as Malaysia’s VAT system.
  • GST has a 6% rate and replaced the previous consumption tax, including SST.
  • It applies to goods and services at all supply chain levels, from suppliers to retail distribution.
  • The tax reform aims to improve tax compliance and simplify administration through self-policing.

Malaysia Certificate of Residence Application (COR)

  • KKHO recognizes the importance of the Certificate of Residence (COR) in Malaysia for confirming tax residency status.
  • The COR is issued by the Inland Revenue Board of Malaysia (IRBM) and validates an individual’s residence in Malaysia for tax purposes.
  • Eligible taxpayers who are Malaysian residents can benefit from the Double Taxation Agreement (DTA) provisions by obtaining a COR.
  • The DTA helps prevent income from being taxed twice by treaty countries.
  • font-family: var( –e-globA COR is typically valid for 12 months from the date of endorsement.
  • It is necessary to apply for a new COR upon its expiration or at the request of the client from the treaty country.

Personal Income Tax

  • Income tax is compulsory and imposed on the financial income of individuals and entities within a specific jurisdiction.
  • In Malaysia, both businesses and individuals must file tax returns annually to assess tax liabilities or claim tax refunds.
  • The requirement applies to those whose income is earned within Malaysia.
  • Income tax is a vital revenue source for the government, funding various activities and public services for citizens.

Withholding Tax Services in Malaysia

  • Malaysia, like many other countries, enforces withholding taxes on payments made to non-residents.
  • Withholding tax is a portion of income tax withheld by the payer in Malaysia from the income of non-resident recipients.
  • The withheld amount is then remitted to the Inland Revenue Board of Malaysia (IRBM).
  • Withholding tax is used to collect income tax from specific groups of non-residents in Malaysia.
  • It is applicable to various types of payments, such as royalties, interest, contract payments, and certain categories of income paid to non-residents.

E- Stamping

  • In Malaysia, KKHO recognizes stamp duty as a tax imposed on specific documents or written instruments listed in the First Schedule of the Stamp Duty Act 1949.
  • Documents or instruments executed within Malaysia must be appropriately stamped within 30 days of their execution. 

Tax Investigation

  • Tax investigation is an enforcement measure conducted by the Inland Revenue Board Malaysia (IRBM) to verify tax filings’ accuracy.
  • Its main purpose is to investigate taxpayers suspected of fraudulent activities, intentional evasion, or negligent reporting of income.
  • The Director General of Inland Revenue (DGIR) has the authority, under the Income Tax Act of 1967, to initiate investigations and conduct tax audits on taxpayers.
  • Tax offenses such as non-compliance and tax evasion can lead to charges under the Income Tax Act.

Tax Clearance and Application

  • Tax Clearance Letter (Surat Penyelesaian Cukai, SPC) in Malaysia is issued by the Inland Revenue Board of Malaysia (IRBM).
  • It certifies any outstanding tax liabilities of a taxpayer.
  • Required in various circumstances, including retirement, completion of employment contract, resignation, termination of employment, or leaving Malaysia for over three months.
  • Release of salary depends on obtaining the Tax Clearance Letter.
  • Next of kin must apply for the letter in the event of a taxpayer’s demise.
  • Applies to both Malaysian citizens and expatriates/foreign workers in Malaysia

Transfer Pricing in Malaysia

  • Transfer pricing involves pricing arrangements between associated entities for the transfer of goods, services, and intangible assets.
  • The goal is to ensure that the pricing is in line with prevailing market prices in transactions between independent parties.
  • It aims to reflect prices that would be agreed upon in arm’s length transactions between unrelated entities.
  • This approach promotes fairness and prevents potential distortions in profit allocation and tax liabilities among associated parties in cross-border transactions.

GST Health Check

  • Availing professional services helps identify and assess key risk areas concerning Goods and Services Tax (GST).
  • The services involve a comprehensive review and analysis of GST risk areas to uncover potential vulnerabilities.
  • Skilled experts conduct face-to-face meetings at your premises, engaging in detailed discussions with your personnel.
  • This collaborative approach includes a walkthrough of draft findings for clarity and understanding.
  • The expert provides a concise summary of their findings and recommendations, emphasizing significant GST risk areas that need attention.

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