Professional Documents
Culture Documents
Chapter 6: Corporate Taxation NO. Terms A N.A DD
Chapter 6: Corporate Taxation NO. Terms A N.A DD
NO.
1
TERMS
Accounting Fees
- Accounting, Audit fees, and expenses incurred
- Payments made to accountant for tax advice
Advances and Loans
- Advances to supplier to secure source of supply
- Advanced of money to a new company.
- Losses incurred as a result of advance to a subsidiary.
DD
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Bonus
Travelling expenses
- Travel between home and work.
- Travelling from home which is also the office or base
- Travelling between places of work
- Travelling in the course of work
- Travelling to attend conferences
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Devaluation losses
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N.A
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14 Stamp duties
- Revenue Expenditure
- Capital Expenditure
15 Insurance premiums
- Incurred by business
- Professional insurance premiums( Key-man)
NO. TERMS
18 Community projects
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Elements of : Improvement
Enlargement
25 Employees benefits: (business purpose-allowable)
- Entertainment allowances (50%)
- Accomodation provided to employees
- Entrance fee to a club for the managing director's
- Subsidized meals for employees
- Business entertainment expenses(entertain supplier/tax
agents) (50%)
- Dinner for clients(50%)
- Sponsorship of a cultural activity (approved) S34
- Cost of souvenirs to promote Malaysia's product
N.A
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NO
TERMS
N.A
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26 Professional fees
- Registration of a new trademarks
- Renewal of trademarks
- Accounting, tax and secretarial services
- Appeal to Special Commissioner of Income Tax
- Advice from local consultants
- Recruitment of staff
- Technical assistance fees
- Legal fees
- Legal fees on recovery of trade debt
- Legal fees for handling income tax appeal
- Business zakat ( add first/ to be deduct later)
27 Bad debts
- Write off (trade)
- Recovered (trade)
- General
- Specific
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28 Lease rental
- Payments in respect of MV other than those qualifying are
restricted to a maximum of RM 50,000 per vehicle.
- Payments in respect of MV other than those qualifying are
restricted to a maximum of RM 100,000 per vehicle.
Conditions:
- The vehicle must be a new vehicle. It must not be been used
by any person for any purpose prior to the rental.
- The total cost of the vehicle does not exceed RM 150,000.
30 Interest
- Loan buying assets
- Loan business
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DD
Commissioner of Sports
- Contributions for projects of national interest approved by
the Minister of Finance.
32 Double Deductions:
- Interest on Loan to small business
- Employment of Disabled Employees
- Insurance Premium for Import of Cargo
- Training of Handicapped Persons
- Export Credit Insurance Premium
- Freight Charges
- Research Expenditure
- Contributions to Approved Research Institutes
- Overseas Expenses for Promotion of tourism
- Expenditure for Approved Training
- Expenses Incurred in International Trade Fairs
- Halal certification Expenses
- Fees Incurred in Packaging Design
- Expenditure on Advertising Malaysian branded products.
- Expenses on promoting brand names
- Contributions to Low Cost Housing Fund
- Expenses incurred to promote export of services
- Expenses for promotion of exports
- Expenses for promotion of Higher Education
- Expenditure Incurred in Employing unemployed Graduates
- Employing of retrenched workers
- Promoting Malaysia as an International Islamic Financial
Centre.
FORMULA:
Profit before tax
(-) Non-Allowable expenses
(-) Other income
Adjusted income
(-) Capital allowances
(-) Capital allowances *new
Statutory Income
(-) Unabsorbed loss
(+) Other income : Dividend & Interest (exempted/NIL)
Aggregate income
(-) Donation ( < 10% x AI )
(-) Zakat ( 2.5% x AI )
Chargeable income
Tax payable (25% x CI )
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