e-Tax News (November/2016)

To our valuable customers and business associates,

On 21 October 2016, YAB Dato’ Sri Mohd Najib Bin Tun Haji Abdul Razak, Malaysia Prime Minister has tabled

Budget 2017 themed “Ensuring Unity and Economic Growth, Inclusive Prudent Spending, Wellbeing of the

Rakyat”.

We summarised below our assessment on the potential risks and opportunities on some of the salient tax

centric highlights of Budget 2017: -

1. REDUCTION IN TAX RATE FOR SMALL AND MEDIUM ENTERPRISES AND LIMITED LIABILITY PARTNERSHIP

Income tax rate on first RM500,000 of chargeable income in respect of Small and Medium Enterprises

(“SMEs”) and Limited Liability partnership (“LLP”) be reduced by 1% from 19% to 18%; and

Income tax rate of chargeable income exceeding RM500,000 may be reduced based on percentage of

increase in chargeable income as compare to the immediate preceding year of assessment (only

applicable to Years of Assessment 2017 and 2018). Further explanation is provided in item 2 below.

Effective date: Year of assessment 2017

Editor’s comments

SMEs are the backbone of the country’s economy which are expected to contribute 41% to the country's

gross domestic product by 2020 compared to 32% in 2012 according to the Minister of International Trade

and Industry (“MITI”). In addition, according to the Census Report on SMEs 2011, there was a total of 645,136

SMEs operating their businesses in Malaysia, representing 97.3% of total business establishments in Malaysia.

With the weakening of the ringgit, declining of oil price, rising costs of doing business and the weak market

sentiment both locally and globally, many SMEs have been negatively affected by the uncertainty of the

overall Malaysian economy.

2017 PKF TAX SEMINARDewan Berjaya, Bukit Kiara Equestrian & Country Resort

Jalan Bukit Kiara, Off Jalan Damansara

21 November 2016 (Monday) | 1:00pm – 5:30pm

*Please refer to the attached brochure

The total tax saving from the above income tax rate reduction of 1% on the first RM500,000 is RM5,000

which may not be a material amount and does not serve any specific objective in promoting and

strengthening the development of SMEs in Malaysia both at domestic and global markets. We are of the

view that specific tax initiatives in the form of double tax deduction or exemption of income tax similar to

those announced in Budget 2016, namely automatic double deduction for research and development project

and special allowance for increased exports incentive for SMEs, would be more effective to boost the

development of SMEs in Malaysia with a specific target in mind. With the globalisation of trade, for SMEs in

Malaysia to remain competitive in the global market, tax incentive can be introduced to promote innovation,

packaging, marketing initiatives, market penetration and any reinvestment initiative.

2. REDUCTION OF CORPORATE INCOME TAX RATES BASED ON THE INCREASE IN CHARGEABLE INCOME

The incremental portion of chargeable income will enjoy stages of tax reduction below the existing

headline corporate income tax rate of 24% in years of assessment 2017 and 2018 as follows:

The rate reduction between 1% to 4% for companies (both SMEs and non-SMEs) is only restricted to

the incremental of the chargeable income as compared with the immediate preceding year of

assessment. In other words, the reduced income tax rate as highlighted above will not be applicable to

the full chargeable income for that year of assessment (i.e. only applied to the incremental portion of

the chargeable income).

Effectively, if the above condition is satisfied, the chargeable income of a non-SME company may be

taxable at the prevailing income tax rate and also enjoying the above reduced income tax rate

proportionately to its chargeable income.

Effective date: Years of assessment 2017 and 2018

Editor’s comments

The above initiative will be gazetted by way of a statutory order and the said statutory order is currently still

pending. We summarised below some of the potential tax issues related to the above tax initiative:-

Only companies with “real increase in chargeable income” will be eligible to enjoy the above reduced

tax rate which means that companies in loss making position in the immediate preceding year will not

be eligible for the above tax initiative. The above is based on the verbal confirmation provided by the

Inland Revenue Board (“IRB”) in the recent national tax seminar 2016.

Will the above reduced tax rate be applicable to companies with basis period less than or more than 12

months in the relevant years of assessment? If so, the basis of apportionment acceptable by the IRB

must be promptly clarified to avoid any future dispute.

Will the branch of a foreign company in Malaysia be eligible for the above reduced income tax rate?

Our view is that the above reduced income tax rate may be restricted to a Malaysian incorporated

company only.

% of increase in chargeable

income compared to the

immediate preceding YA

% point reduction on income

tax rate

Reduced income tax rate on

increase in chargeable income (%)

Less than 5% Nil 245% - 9.99% 1 23

10% - 14.99% 2 2215% - 19.99% 3 21

20% and above 4 20

Will the above tax initiative be mutually exclusive with other tax incentives (i.e. companies claiming tax

incentives will not be eligible)?

As the relevant statutory order to effect the above tax initiative is still pending, the above is merely our initial

observation on the potential impacts and we need to examine in greater detail on the terms and criteria of its

eligibility once the said statutory order is made available.

3. RE-DEFINITION OF “ROYALTY”

The definition of royalty is expanded to include any sums paid as consideration for, or derived from: -

the use of, or the right to use software;

the reception of, or right to receive, visual images or sounds, or both, transmitted to the public by

satellite or cable, fibre optic or similar technology;

the use of, or the right to use, visual images or sounds, or both, in connection with television or

radio broadcasting transmitted by satellite or cable, fibre optic or similar technology;

the use of, or the right to use radiofrequency spectrum specified in relevant licence;

total or partial forbearance in respect of the use of, reception of, or the granting of the right to

use/receive any such property or rights or any sum items that are covered in the definition of royalty.

Effective date: Upon coming into operation of the Finance Act 2016

Editor’s comments

If any payment made by a taxpayer to a non-resident falls within the ambit of royalty and be subject to

withholding tax, compliance of the withholding tax provision is required to ensure the tax deductibility of the

expenses incurred or the claiming of capital allowance be allowed. In addition, withholding tax payable is a

debt due to the Government and the IRB is empowered to issue a notice to require a person to remit the

withholding tax due within a specific timeframe. Thus, the potential tax impacts in respect of the above

changes must be properly addressed by taxpayers.

The inclusion of “software” in the new definition of royalty may indicate that the purchase of software from a

non-resident which will normally be capitalised as a fixed asset and be eligible for the claiming of capital

allowance, may fall within the ambit of withholding tax. Further clarification from the IRB is required in order

to clarify the above.

The above widening of the definition of royalty may affect many taxpayers due to the wide usage or sharing

(for group perspective) of any software and information technology in their day to day operation, thus

taxpayers are advisable to revisit any potential payments made to non-resident which may be caught under

the above new definition of royalty by reviewing their existing agreements or contracts with any non-resident

in order to identify the scope of the services. If withholding tax is applicable, any clause in the agreements or

contracts to indicate which party will bear the withholding tax exposure. The withholding tax exposure in

respect of the above new definition of royalty must be properly addressed in order to avoid any potential tax

penalty and disallowance of the expenses incurred.

4. WIDENING OF SCOPE FOR WITHHOLDING TAX ON SPECIAL CLASSES OF INCOME

Income of a non-resident person from the following special classes of income shall be deemed to be

derived from Malaysia and subject to withholding tax under Section 109B of the Income Tax Act, 1967

(“the Act”) irrespective of whether the services are performed in Malaysia or outside Malaysia:

services rendered by non-resident person or his employee in connection with the use of property or

rights belonging to him, or the installation or operation of any plant, machinery or other apparatus

purchased from him; and

technical advice, assistance or services rendered in connection with technical management or

administration of any scientific, industrial or commercial undertaking, venture or scheme.

Effective date: Upon coming into operation of the Finance Act 2016

Editor’s comments

With the above proposed changes, all payments made to non-resident for the abovementioned classes of

income including services performed outside Malaysia will be subject to withholding tax pursuant to Section

109B of the Act. During the recent national tax seminar 2016, the IRB has verbally clarified that in respect of

the existing contracts for services with non-residents during the transitional period, the withholding tax

provision under the above amendment will be based on when the services are rendered and the date of

payment for the services will be disregarded. In other words, assuming the Finance Bill 2016 will be gazetted

on 1 January 2017, in respect of payments made to non-residents for services rendered after 1 January 2017

will be subject to withholding tax regardless of the date of payment.

In order to avoid any potential income tax issues and penalties, taxpayers must review their existing contracts

for services with non-residents in order to identify the scope of the services. If withholding tax is applicable,

any clause in the agreements or contracts to indicate which party will bear the withholding tax exposure. We

also wish to highlight that if the withholding tax is borne by the taxpayers instead of the non-residents, the

re-grossing method must be used to compute the withholding tax due to the IRB and also any withholding tax

suffered will not be eligible for tax deduction. Thus, the tax impact in respect of the above amendment on the

existing contracts for services must be properly addressed.

5. AMENDMENT ON ENTITLEMENT TO INDUSTRIAL BUILDING ALLOWANCE ON CERTAIN BUILDINGS

Budget 2016 – New subsection 16B of the Act has been inserted as follows:

No Industrial Building Allowance (“IBA”) can be claimed for expenditure incurred in relation to Para

37A, 37B, 37C, 37E, 37F, 37G, 37H, 42A and 42B where the building or part thereof is let out

including the business of letting of property.

Budget 2017 – Amendment to subsection 16B of the Act with effect from year of assessment 2016 as

follows:

A person who owns the below buildings and used for the purpose of his business as an industrial

building, is entitled to claim IBA in respect of any expenditure incurred in relation to the whole

building provided that part of the building let out is not more than one-tenth of the floor area of

the whole building:-

If part of the building which is used for letting of property is more than one-tenth of the floor area

of the whole building, such part will not be treated as industrial building, and thus not eligible for

IBA.

Para 37A - Licensed private hospital, maternity home and nursing home

Para 37B - Building used for research

Para 37C - Building used for warehouse

Para 37E - Buildings used for approved service project

Para 37F - Buildings used for hotel

Effective date: Year of assessment 2016

Editor’s comments

The IRB has previously clarified in the Minute of the Dialogue on the Joint Memorandum on issues arising

from Budget 2016 that the amendment made in Budget 2016 would only be applicable to expenditure

incurred on new buildings acquired from year of assessment 2016.

The amendment to Schedule 16B of the Act is a welcome news to taxpayers as previously no IBA can be

claimed if the industrial building or part of the building are let out. Pursuant to the insertion of the new

subsection 16B announced in Budget 2017, taxpayers are now required to determine the area/portion of the

place rented out to determine the % of IBA claimable for the year of assessment.

6. OUTPUT TAX BORNE BY EMPLOYER SHALL INCLUDED AS GROSS INCOME OF THE EMPLOYEE

The taxable value of employment income shall include the output tax paid by the employer under the

Goods and Services Tax Act 2014 (“GSTA 2014”) in connection with the gross income borne by the

employer with effect from year of assessment 2015.

Effective date: Year of assessment 2015

Editor’s comments

An employer does not have to account for the GST output tax for any employee benefits stated in a contract

of service with employees, contract of employment or company policy (i.e. company’s handbook) provided

free to the employee.

GST is not merely confined to external business transactions but also internal transactions between the

employer and its employees and this includes employee benefits where goods are provided free to

employees which exceeds RM500 and the employee benefits are not stated in the company’s handbook. This

issue is only applicable to employers who are taxable persons with annual taxable turnover exceeding

RM500,000.

Tax exemption of RM2,000 is given on perquisite whether in cash or in kind, in respect of past achievement,

service excellence award, innovation or productivity award, or long service award received by an employee

pursuant to his employment. For long service award, the employee must serve with the same employer or

with companies within the same group of companies for more than 10 years.

Para 37G - Airport

Para 37H - Motor racing circuit

Para 42A(1) - Provision of living accommodation for individuals employed by him for his

manufacturing, hotel or tourism business or an approved service project under

schedule 7B

Para 42A(2) - Building used for provision of child care facilities for individuals employed by

the person for his business

Para 42B - Building used for school or educational institutional approved by the MOE or

MHE or relevant authority

Para 42C - Building for the purpose of industrial, technical or vocational training

However, as the above is effective retrospectively from the year of assessment 2015, prompt clarification

from the IRB is required to address those Forms E, Forms EA and Forms B/BE for the year of assessment 2015

which have been submitted to the IRB and whether any revision would trigger potential penalties under

Section 113 and Section 120 of the Act.

7. TAX RELIEFS FOR INDIVIDUAL

Relief for Lifestyle

Difference between the new lifestyle tax relief and the existing reliefs: -

Effective date: Year of assessment 2017

Relief for Fees paid to Child Care Centres and Kindergartens

Relief of up to RM1,000 will be given to a parent who enrols his/her child aged 6 years and below in a

registered child care centres or kindergartens.

Effective date: Year of assessment 2017

Increase in Deduction for Full Medical Examination Expenses

The maximum total deductible for medical expenses has been increased from RM5,000 to RM6,000.

Effective date: Year of assessment 2015

Editor’s comments

The main concerns of most Malaysians are the rising cost of living and its domino effect on other areas, such

as housing affordability, children education, cost of health care and others. The removal of fuel subsidies,

weakening global economy, tumbling currency and political instability have exacerbated the rising cost of

living in Malaysia. The above proposed initiatives will help to some extent alleviate the rising cost of living in

Malaysia.

The tax relief for lifestyle is not exactly new. It is a combination of a few of the existing tax reliefs, namely

reading materials (up to RM1,000 a year), computer (up to RM3,000 every three years), and sports

equipment (up to RM300 a year). The scope of the lifestyle tax relief of RM2,500 yearly, also includes new

categories such as the purchase of printed newspapers, smartphones and tablets, internet subscriptions as

well as gymnasium membership fees.

As the scope of this lifestyle tax relief has been widened to cover a few categories of items, it offers greater

flexibility for taxpayers to maximise the claim of the above tax relief depending on their lifestyle. However, as

YA 2016 YA 2017

Purchase of books, journals,

magazines and publications

Up to RM1,000

(every year)

Up to RM2,500

(every year)

+

Printed newspaper, smartphone,

tablet, internet subscription and

gym membership

Purchase of personal computer Up to RM3,000

(every 3 years)

Purchase of sport equipment

for sport activities

Up to RM300

(every year)

Total maximum reliefs Up to RM6,900 over 3 year Up to RM7,500 over 3 years

the quantum of the relief is restricted to RM2,500 per year of assessment, the potential tax saving derived

from this relief may not be too substantial.

8. EXTENSION OF THE PERIOD AND EXPANSION OF SCOPE OF DOUBLE DEDUCTION INCENTIVE FOR THE

STRUCTURED INTERNSHIP PROGRAMME

Double deduction is granted on expenses incurred by companies participate in structured internship

programme approved by the Talent Corporation Malaysia Berhad.

This programme is made available for Malaysian students pursuing full-time degree and diploma

courses in institutions or higher learning or for equivalent vocational level (Malaysian Skills Certificate

Level 4 and 5) as follows: -

a) Degree level – from years of assessment 2012 until 2016; and

b) Diploma and Vocational level – from years of assessment 2015 until 2016.

It is proposed that this programme be extended for another 3 years and expanded to include Malaysian

students pursuing full-time vocational level (Malaysian Skills Certificate Level 3).

Effective date: Years of assessment 2017 until 2019

Editor’s comments

Any taxpayer with the intention to undertake corporate social responsibility initiative for education/training

may consider either the Approved Internship Programme or the 1Malaysia Training Scheme (SL1M), and the

relevant expenses incurred for the programme will be eligible for double tax deduction. We have summarised

below a comparison of the relevant criteria and eligibility to ease your reference: -

Approved Internship Programme 1Malaysia Training Scheme (SL1M)

Effective YA 2011 to 2019 2012 to 2020

Qualifying

organisations

≥ RM2.5m share capital

≥ RM21m revenue for the last 3 years

≥ 5 years in operation (3-5 years can

consider)

Headcount :

• Non-manufacturing – min. 50

person

• Manufacturing – min. 100 person

Register with EPU (Economic Planning

Units)

Register with JobsMalaysia of Ministry

of Human Resources

Pre-approval TalentCorp

Detailed write-up of structured

internship programme

EPU

2 months soft-skills training and the

duration of On-The-Job Training is

maximum of 10 months with EPU’s

approval.

Must ensure graduates are employed

before the end of programme

9. GST REGISTRATION TURNOVER THRESHOLD

In determining the taxable threshold, Section 20(6) of the GSTA 2014 has been amended to exclude;

supplies of goods that are capital assets of the business in the course or furtherance of which are

supplied or to be supplied due to cessation of business.

Also, a new insertion of Section 20(6)(f) of the GSTA 2014; to exclude supplies made within or between

the free zones where GST has been suspended

Effective date: 1st January 2017

Editor’s comments

By excluding the taxable turnover made within or between DA, the taxable turnover may not exceed the

threshold to trigger for a mandatory GST registration. However, businesses will need to evaluate the

quantum of the input tax that they will suffer from their vendors providing services from Principal Custom

Area. Businesses may consider voluntary GST registration in order to claim the input tax suffered on case by

case basis but any voluntary GST registration is subject to the approval by the Customs Department on the

merit of the case.

10. INCREASE OF PENALTY FOR LATE PAYMENT OF GST FOR REGISTERED PERSON

A revision of the penalty rates for late payment of GST has been proposed: -

Target group /

graduates

YA 2012 – YA 2016

Students pursuing degree

programme or its equivalent

Completes the approved internship

programme before completion of

final semester

Malaysian citizen and fulltime

students

YA 2015 – YA 2016

Extended to include pursuing training

at vocational (Malaysian Skills

Certificate Level 4 and 5) and

diploma levels.

YA 2017 – YA 2019

Extended to include pursuing full-

time vocational level (Malaysian Skills

Certificate Level 3)

YA 2012 – YA 2016

Malaysia citizen

Local or foreign graduates

Unemployed for 6 months after

graduation / final result

Register with JobsMalaysia of Ministry

of Human Resources

Min. qualification : Bachelor's degree

YA 2015

Extended until 31 December 2020.

Expenses eligible

for double

deduction

Allowance of RM500

Expenditure incurred for provision of

training including meal,

accommodation and travelling for

students approved by TalentCorp

Max. for each student is RM5,000/YA

Min. monthly allowance of RM1,000

Expenses to provide soft skill training

except capital expenses

Expenses to provide soft skill training

Max. for each student is RM5,000/YA

for items (2) and (3)

Note: The penalty rate will be applied on the outstanding amount.

Effective date: 1st January 2017

Editor’s comments

Although the current penalty rate was only introduced in the previous budget tabled in 2015, the

Government is taking a hard approach on tax defaulters. GST has been imposed in Malaysia for a period of

approximately 21 months, some may say the increment of the penalty has come to soon. Perhaps, a

concession period should be provided to tax defaulters to settle the outstanding tax to encourage the full

settlement.

11. INTRODUCTION OF PENALTY FOR LATE PAYMENT OF GST FOR NON-REGISTERED PERSON

Introduction of the penalty rates for late payment of GST by non-registered person has been proposed: -

Note: The penalty rate will be applied on the outstanding amount.

Effective date: 1st January 2017

Editor’s comments

The Government is showing their intention to create greater awareness to non-registered person by imposing

higher penalty rates. Although this would create greater awareness to non-registered person on the

seriousness of the offences, perhaps, a better alternative is for the Customs Department to provide greater

assistance and education in guiding SMEs in Malaysia to be in compliance since the implementation of GST in

Malaysia is still at the infancy stage.

12. ISSUANCE OF TAX INVOICE FOR GST

No invoice showing an amount of tax shall be issued by any registered person

o On any supply of goods or services which are non-taxable supply; or

o On any zero-rated supply.

Any non-registered person (except for an agent acting on behalf of a principal) shall not issue:-

o An invoice showing an amount of tax or an amount inclusive of tax; or

o An invoice which appears as a tax invoice with or without a tax amount.

Effective date: 1st January 2017

Period from due date of payment Current penalty rate Proposed penalty rate

Within 30 days 5% 10%

31 to 60 days 15% 25%

61 to 90 days 25% 40%

Period from due date of payment Proposed penalty rate

Within 30 days 10%

31 to 60 days 25%

61 to 90 days 40%

Editor’s comments

The amendment to this Section provides a clearer understanding on the types of invoices to be issued for

zero-rated supplies and non-registered person invoices.

Zero-rated supply may be issued with a tax invoice with the GST amount presented as ‘NIL’, while non-

registered person is not allowed to issue a tax invoice or an invoice which appears to be like a tax invoice.

Furthermore, the word ‘inclusive of GST’ is not permitted to be used by non-registered person. This would

help to avoid potential confusion to the registered person in claiming input tax by identifying invoices with

GST and without GST.

13. FAILURE TO COMPLY WITH MUTUAL ADMINISTRATIVE ASSISTANCE ARRANGEMENT PROCEDURE

INCLUDING COUNTRY-BY-COUNTRY REPORTING

The Organisation for Economic Co-operation and Development (“OECD”) released its final reports on the

Base Erosion and Profit Shifting Project (“BEPS Report”) with 15 specific action items were identified to

address the issues undermining the global tax system. BEPS refers to tax planning strategies that exploit gaps

and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no

economic activity.

One of the 15 action items was Action 13: Transfer Pricing Documentation and County-by-Country (“CbC”)

Reporting. Action 13 gives recognition to the importance of transparency with a specific set of documentation

requiring adequate information to be furnished to the tax authorities. The CbC Reporting requirement is the

most defining aspect of Action 13. This Report is intended to provide a complete overview of the situational

aspects of all value added or value creating activities that are executed within the overall supply chain of the

Multinational Enterprises (“MNEs”).

Malaysia is one of the country that has signed the Multilateral Competent Authority Agreement (“MCAA”) for

the automatic exchange of information including information prescribed in CbC Report. The MCAA aims to

increase international tax transparency and improve tax authorities’ access to specific information through

the automatic exchange of annual CbC Report. Thus, in order to facilitate the filing of CbC Report and to

ensure proper compliance by taxpayers, the following new penalty provisions are introduced: -

Editor’s comments

We have seen robust development in the Transfer Pricing (“TP”) landscape in Malaysia over the last few years

where the tax authorities becomes increasingly proactive and vigilant in scrutinising controlled transactions of

both MNEs and local group of companies in Malaysia. In Malaysia, TP requirements does not confine to MNEs

which is the normal misconception but equally, local group of companies must also address their TP

compliance in Malaysia. The tax authorities enforce TP compliance through tax audits, at which point

taxpayers are required to submit their TP documentation within 30 days. In addition, a declaration is also

required in the tax return form on the availability of TP documentation serves as one of the selection criteria

used by the tax authorities for the selection of taxpayers for tax audit purposes.

Section Offence Proposed penalty

112A Failure to furnish CbC Report Fine of not less than RM20,000 and not

more than RM100,000; or Imprisonment

for a term not exceeding 6 months or

both

113A Incorrect returns, information returns or reports

119BFailure to comply with rules made by the

Ministers on mutual administrative assistance

© 2016, PKF Tax. All Rights Reserved.

Disclaimer

This publication is provided gratuitously and without liability. It is intended as a general guide only and the application of its contents to

specific situations will depend on the particular circumstances involved. Readers should seek appropriate professional advice regarding

any particular problems that they encounter, and this tax update should not be relied on as a substitute for this advice. Accordingly, PKF

Tax Services Sdn Bhd assumes no responsibility for any errors or omissions it may contain, whether caused by negligence or otherwise,

or for any losses, however caused, sustained by any person that relies on it. Should further information, clarification or advice be

required on any of the contents stated herein, please feel free to contact our tax team.

Contact us

PKF Tax Services Sdn Bhd

Level 33, Menara 1MK,

Kompleks 1 Mont’ Kiara

No. 1, Jalan Kiara, Mont’ Kiara

50480 Kuala Lumpur

Tel : +6 03 6203 1888

Fax : +6 03 6143 2213

Email : pkftax@pkfmalaysia.com

Website: www.pkfmalaysia.com

Our services – Taxation

An integral part of your forward planning for

the entire organisation.

• Corporate Tax Compliance

• Strategic Tax Planning

• Tax Investigations

• Conflict Resolutions

• Transfer Pricing

• Expatriate Services

• GST Compliance & Advisory

14. COLLECTION INTELLIGENCE ARRANGEMENT

The Government is committed to enhance long-term fiscal sustainability, among others, through the

establishment of the Collection Intelligence Arrangement (“CIA”) under the Ministry of Finance. It involves

Inland Revenue Board, Royal Malaysian Customs Department and Companies Commission of Malaysia and

they will share data to enhance efficiency in tax collection and compliance.

Editor’s comments

With the establishment of CIA, this will allow the compliance officers to collaborate and share information

easily. CIA aim to establish effective information exchange and improve transparency of taxpayer’s financial

arrangements or transactions for tax purposes.

Venue : Dewan Berjaya

Bukit Kiara Equestrian & Country Resort

Jalan Bukit Kiara, Off Jalan Damansara

Date : 21 November 2016 (Monday) | Time : 1:00pm – 5:30pm

Main speakersLim Ai Chen, Director of PKF Tax Services Sdn

Bhd, is a Chartered Accountant and a Fellowwith Certified Chartered Accountants of UnitedKingdom (FCCA), Malaysian Institute ofAccountants (MIA) and CPA Australia, andmember with the Chartered Tax Institute ofMalaysia (CTIM). She is a Licensed Tax Agentunder both S.153 (ITA, 1967) and S.170 GST Act2014.

She has over 20 years of extensive working in the areas of statutoryaudit and taxation both in direct and indirect taxes (i.e. Income taxand Goods and Services Tax compliance and advisory).

Ai Chen specialises in handling tax dispute defense, tax advisory, taxaudit and investigations, including preparing and making appealswith the Special Tax Commissioners of various industries.

She was previously attached with the Inland Revenue Board ofMalaysia (IRBM) in the Investigation and Intelligence Unit with themain role of discovering back duty, conducting full examination andinvestigation of various tax fraud and evasion cases, in variousindustries especially in property development and land dealingcompanies. She is also a GST qualified specialist in Malaysia. Herexperience covers advising on GST compliance, advisory andprovision of training.

With slowing global trade and heightened economic uncertainty, this year is expected to beparticularly challenging for businesses. Against this backdrop, how do firms improve agility andcompetitiveness in response to Budget proposals and latest changes in the tax landscape inMalaysia?

Organised by PKF, this year's tax seminar provides businesses with a practical understanding ofthe key Budget changes and our highlights on the latest developments in Transfer Pricinglandscape in Malaysia.

Owen Tan, Director of PKF Tax Services SdnBhd, has more than 20 years of workingexperience in taxation, with previousexperience in two “Big 5” InternationalAccounting Firms. He is a Fellow member of theAssociation of Chartered CertificatedAccountants, members of the MalaysianInstitute of Accountants and the Chartered TaxInstitute of Malaysia. He is also a Licensed TaxAgent under S.153 (ITA, 1967).

He specializes in corporate taxation including transfer pricingassignments related to intra-group services and common cross-border transactions, both inbound and outbound, restructuring ofcompanies and tax due diligence exercises for acquisition and mergerof businesses.

Owen has wide experience in tax risk management including pre fieldtax audit reviews, tax compliance risk reviews and tax investigationassignments. He is frequently invited to speak in tax seminars andconferences organized by the various professional bodies and localorganisations such as SME Malaysia, Malaysian Retailer-ChainsAssociation, such as SME® TM Biz Networking Seminar and otherconferences.

PROGRAMME

1:00PM Registration of participants & welcome coffee1:45PM Welcome speech 2:00PM Overview and budget 2017 highlights [Speaker: Ms Lim Ai Chen]

- In-depth analysis on 2017 Budget proposals and changes- Insights into the latest changes together with their impacts on businesses- The potential opportunities and risks of major changes in Malaysian tax law- Exploring latest developments, emerging trends and best practices

3:30PM Afternoon refreshment4:00PM Transfer Pricing Landscape in Malaysia [Speaker: Mr Owen Tan]

- Developing an awareness of Transfer Pricing regulatory framework in Malaysia- Who will be affected by Transfer Pricing requirements in Malaysia?- Insights into intra-group services and common related party transactions- Common tax authority “red flags” and possible risk mitigation options

5:15PM Q&A session5:30PM End

The seminar fee is claimable under the HRDF SBL Scheme

REGISTRATION FORM

PARTICIPANTS’ DETAILS

Participant 1

Full name :

Designation :

Mobile : Email :

Participant 2

Full name :

Designation :

Mobile : Email :

Participant 3

Full name :

Designation :

Mobile : Email :

Participant 4

Full name :

Designation :

Mobile : Email :

ORGANISATION’S DETAILS

Company name :

Address :

Telephone : Fax :

WHO SHOULD ATTEND

- Directors / Business Owners / Chief Financial Officers- Finance Controllers / Accountants / Finance Managers- Account Executives / Account Assistants- Business / Management Consultants and Advisors- Investment Analysts / Businessman Advisers- Any other personnel interested in tax updates

ENQUIRIES FOR REGISTRATION

Contact : Ms Kadijah / Ms Soo Yee LingTel : 03-6203 1888 (ext: 228) Fax : 03-6201 8880 / 03-6143 2213 Email : kadijah.herman@pkfmalaysia.com /

yeeling.soo@pkfmalaysia.com

Terms & Conditions

CancellationsIf you are unable to attend, a substitute delegate is allowed. Please notify us in writing at least three days prior to the date of seminar if you intend to send a substitute. Confirmed

registrant who failed to attend is liable for the entire fee.

DisclaimerThe organizer reserves the right to change the speaker, date and to cancel the programme should circumstances beyond their control arise. The organizer also reserves the right tomake alternate arrangements without prior notice should it be necessary to do so. Admittance will only be permitted upon receipt of full payment. Registration made by fax must befollowed up immediately by payment. Upon signing the registration form, you are deemed to have read and accepted the terms and conditions.

SEMINAR FEE

FEE (inclusive of seminar materials and tea break)

Regular fee : RM180Early bird fee : RM150

(registration & payment by 7 November2016)

Group fee : RM130 per delegate(valid for 2 participants and above from thesame organisation)

*Price inclusive of GST

PAYMENT DETAILS

All Cheques should be crossed and made payable to PKF AvantEdge Sdn Bhd, and mail the form or confirmation ofregistration to the address below:

Attention: Ms Kadijah / Ms Soo Yee LingPKF Avant Edge Sdn BhdLevel 33, Menara 1MK, Kompleks 1 Mont’ KiaraNo.1, Jalan Kiara, Mont’ Kiara50480 Kuala Lumpur, Malaysia

For Direct Bank In, details as below:

Account Name : PKF Avant Edge Sdn BhdBank : CIMB Bank BerhadAddress : Wisma Genting, Jalan Sultan Ismail, 50200

Kuala LumpurAccount No : 80-0058366-7Swift code : CIBBMYKL

A copy of the transfer slip should be faxed to 03-6201 8880 /03-61432213 with copy of registration form or confirmation ofregistration, or scanned to : kadijah.herman@pkfmalaysia.com

ABOUT THE ORGANIZER

PKF Avant Edge Sdn Bhd and PKF Tax Services Sdn Bhd aremembers of PKF International, a global network of legallyindependent firms bound together by a shared commitment toquality, integrity and the creation of clarity in a complexregulatory environment. With offices in 440 cities, the PKFnetwork is present in 150 countries across 5 continents andspecialise in providing high quality audit, accounting, tax, andbusiness advisory services to international and domesticorganisations in all our markets.