Malaysia News

All Malaysian Companies are required to have at least one director who is ordinarily resident in Malaysia. The person should be either a Malaysian citizen or a person who has permanent resident status in Malaysia. If necessary, YCS can provide the necessary qualified personnel to act as your Company Directors to meet the statutory requirements.

Withholding tax is an amount withheld by the party making payment (payer) on income earned by a non-resident (payee) and paid to the Inland Revenue Board of Malaysia.

'Payer' refers to an individual/body other than individual carrying on a business in Malaysia. He is required to withhold tax on payments for services rendered/technical advice/rental or other payments made under any agreement for the use of any moveable property and paid to a -resident payee.

'Payee' refers to a non-resident individual/body other than individual in Malaysia who receives the above payments.

Withholding Tax Deduction (detail)

The Income Tax Act, 1967 provides that where a person (referred herein as "payer") is liable to make payment as listed below (other than income of non-resident public entertainers) to a non-resident person ( NR payee), he shall deduct withholding tax at the prescribed rate from such payment and (whether such tax has been deducted or not) pay that tax to the Director General of Inland Revenue within one month after such payment has been paid or credited to the NR payee.

Payment TypeIncome Tax Act 1967Withholding Tax Rate
Contract PaymentSection 107A (1) (a)
& 107A (1) (b)
10%, 3%
InterestSection 10915%
RoyaltiesSection 10910%
Special classes of income: Technical fees, payment for services, rent/payment for use of moveable
property
Section 109B10%
Interest (except exempt interest) paid by approved financial institutionsSection 109C5%
Income of non-resident public entertainersSection 109A15%
Real Estate Investment Trust (REIT)Section 109D 
  (i) Other than a resident company 10%
  (ii) Non Resident company. 25%
  (iii) Foreign investment institution (effective from 01/01/2007) 10%
Family Fund/Takaful Family Fund/Dana AmSection 109E 
  (i) Individual and other 8%
  (ii) Non Resident Company 25%
Income under Section 4(f) ITA 1967Section 109F10%
      
  • Preparation and filing of tax returns – compliance services
  •   
  • Tax consulting and planning
  •   
  • Tax appeals/refunds

Every individual who is liable to tax is required to declare his income to IRBM. The taxpayer is responsible for:

  • Declaring income and claiming expenses
  • Computing income tax payable
  • Keeping records for audit purposes
  • Paying the income tax payable

Preparation and filing of tax returns – compliance services

  • Form B (Personal tax with business income)
  • Form BE (Personal tax with employment income)
  • Form P (Partnership)
  • Form M (Personal tax for non-resident)

Tax consulting and planning

Tax appeals/refunds

Auditing & Assurance
Our affiliated CPA firm provides auditing services and assurance service for a wide range of industries for small and medium-size enterprise, multinational corporations and subsidiaries of local and overseas listed companies including:
  • Statutory audit
    Our assurance approach does not focus simply on the financial statements of an organization, but also on the organization's business operations. At all times, we are mindful of the auditor's key role as the guardian of shareholders’ interest
  • Internal audits
    Internal audit is a key driver of effective management control, proactive risk management, good corporate governance and ongoing process improvement. Our comprehensive ranges of internal audit solutions include: 
    • Helping organizations develop and implement risk based internal audit methodologies 
    • Helping firms carry out risk assessment evaluation and testing 
    • Advising on the establishment of robust internal control system 
    • Providing specialized additional resource to in-house internal audit departments 
    • Liaising with external auditors in relation to their annual statutory audit procedures 
  • Special audits
    A special audit review entails a comprehensive and objective examination of the business underlying the numbers. It assists management to identify and focus on key areas and issues and provides insights and comfort to them as well as to outside interests.