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  • C5 - Company Taxation I

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    nabilah natasha
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    This document discusses various aspects of company taxation in Malaysia. It addresses direct taxes on a company's business income, dividends, interest, royalties, and rentals. Foreign income is not taxable. A company is considered a resident if its management and control are exercised in Malaysia. The financial statements must be prepared according to approved accounting standards and audited before tax liability is computed using Form C and paid to the Inland Revenue Board within 7 months of the accounting period closing. It also distinguishes between business and capital expenses as well as capital and revenue receipts for taxation purposes.

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    This document discusses various aspects of company taxation in Malaysia. It addresses direct taxes on a company's business income, dividends, interest, royalties, and rentals. Foreign income is not taxable. A company is considered a resident if its management and control are exercised in Malaysia. The financial statements must be prepared according to approved accounting standards and audited before tax liability is computed using Form C and paid to the Inland Revenue Board within 7 months of the accounting period closing. It also distinguishes between business and capital expenses as well as capital and revenue receipts for taxation purposes.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    15 views7 pages

    C5 - Company Taxation I

    Uploaded by

    nabilah natasha
    This document discusses various aspects of company taxation in Malaysia. It addresses direct taxes on a company's business income, dividends, interest, royalties, and rentals. Foreign income is not taxable. A company is considered a resident if its management and control are exercised in Malaysia. The financial statements must be prepared according to approved accounting standards and audited before tax liability is computed using Form C and paid to the Inland Revenue Board within 7 months of the accounting period closing. It also distinguishes between business and capital expenses as well as capital and revenue receipts for taxation purposes.

    Copyright:

    © All Rights Reserved
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    of 7

    1

    COMPANY
    TAXATION
    (PART I)
    DR ARYATI JULIANA

    BKAT3023 ADVANCED TAXATION


    Direct tax on income accruing
    in or derived from Malaysia

    Business income, dividend


    income, interest, royalties,
    COMPANY TAX
    rental

    Foreign income will not be


    taxable

    BKAT3023 ADVANCED TAXATION 2


    3
    RESIDENCE STATUS

    Resident if management and control of its business are


    exercised in Malaysia

    Management and control refers to where the BOD meetings


    are being held

    Does not refer to location of its business operation

    BKAT3023 ADVANCED TAXATION


    4
    Prepare financial statements
    according MFRS
    FINANCIAL
    STATEMEN
    TS & FS must be audited by approved
    auditors
    INCOME
    TAX
    RETURN Compute tax liability via Form C and
    make payment to IRB within 7 month
    after closing the accounting period

    BKAT3023 ADVANCED TAXATION


    5

    ACCOUNTING INCOME TAXATION INCOME


    Based on approved accounting Based on ITA 1967
    standards
    Revenue less expenses Taxable income less deductible
    expenses
    Disclosed in financial statement Disclosed in ITRF

    BKAT3023 ADVANCED TAXATION


    6
    Business expenses VS. Capital expenses

    Business expenses Capital expenses


    Related to business process Initial expenditure

    Working expenses Connected to business structure

    Recurring expenses Improvement of assets

    Purchase of assets

    Once and for all expenditure

    BKAT3023 ADVANCED TAXATION


    7
    CAPITAL RECEIPT vs REVENUE RECEIPT
    CAPITAL RECEIPT REVENUE RECEIPT

    Non recurrence Recurring

    Appears in balance sheet Appears in income statement

    Long term effect Short term effect

    e.g. Additional capital/assets, sales of fixed assets, loans e.g. Sale of any kind of an inventory, income from services
    borrowed from bank/financial institutions rendered, discount received from the suppliers, sale of scrap,
    interest received, rent received

    BKAT3023 ADVANCED TAXATION

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