The Limited Liability Partnership (LLP) in Malaysia are taxes similar as Limited Liability. However, the LLP are not required to be audited. Therefore, the profit and loss and balance sheet are base on management account. This will be more suitable business vehicle for Small and Medium Enterprise, which the set up of the business are simple, saving of cost and shield form unexpected business liability.

1. TAX ON LIMITED LIABILITY PARTNERSHIP
(LLP)
Loh Boon How
Chartered Accountant

2. WHO ARE THE TAX RESIDENCE?
 The LLP who is residence in Malaysia based on the
management and control of business or affairs
exercised by its partner,
B. H. Loh & Associates
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Budget
2013

3. WHO IS RESPONSIBLE OF TAX AFFAIR?
 A compliance officer who is appointed by the partners
of the LLP under the Limited Liability Partnerships Act
(LLP) 2012 shall be responsible for doing all acts and
things required Income Tax Act 1967 on behalf of the
LLP
 Where no compliance officer is appointed, the partners
of the LLP are jointly and severally liable.
B. H. Loh & Associates
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Budget
2013

4. WHAT ARE THE RESPONSIBILITY OF COMPLIANCE
OFFICER?
 Keep complete accounting records,
 Complete and submit the income tax return Form PT,
 Prepare and submission of tax estimation CP 204,
 Prepare and submission of tax revised estimation CP
204A,
 Make an installment payment and final tax payment,
 Inform an IRB on the changes of accounting periods.
B. H. Loh & Associates
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Budget
2013

5. HOW TO CONTRIBUTE THE CHARGEABLE INCOME?
Description RM RM
Statutory income
Business income XX
Less : Losses b/f (XX)
XX
Other statutory income
Add : Interest and discount income XX
Rent, royalty and premium XX
Other income XX XX
Less : Aggregate income XXX
Current year loss (XX)
Approved donation (XX)
Total income YYY
B. H. Loh & Associates
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6. HOW TO CONTRIBUTE THE CHARGEABLE INCOME?
Description RM RM
Total income XX
Add : Statutory income from dividend YY
Chargeable income ZZ
Add : Unilateral relief AA
Bilateral relief BB
Dividend set off CC
ABC
ABCD
Tax payable @ 20% / 25% XYZ
Less : Tax installment of estimation / revised estimation WXY
Tax payable / repayable VWX
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7. HOW DOES AN ENTITY TRANSFER ASSETS TO LLP?
 Controlled transfer provisions shall apply in respect of
the assets transferred by the converting partnership or
company to the newly formed LLP.
 However, a LLP is not entitled to make a claim for capital
allowances in respect of the assets transferred for the YA
in which the conversion occurred, unless a claim has not
been made by the converting company or partners of
the converting partnership in that year of assessment.
Para 38B, 40 & 76A Sch 3, ITA 1967
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B. H. Loh & Associates
Budget
2014

8. WHAT ARE THE DEDUCTIBILITY EXPENSES?
 The tax deductible of partner remunerations,
perquisites and benefits in kind if the partnership
agreement has been provided of partner remunerations.
(Sec 9, LLP Act 2012)
 The tax deductible of the incorporation expenses if the
capital less that RM2.5 Million.
Sec 39(1)(n), ITA 1967
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Budget
2013

9. WHAT IS THE TAX RATE APPLIED?
 If the total capital less that 2.5 Million,
1) The first RM500,000 or below of chargeable income –
i) 20% in YA2014 and YA2015
ii) 19% in YA2016,
2) The balance above RM500,000 of chargeable income –
i) 25% in YA2014 and YA 2015
ii) 24% in YA2016
Para 2, 2D, 2E & 2F Sch 1, ITA 1967
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Budget
2015

10. WHAT IS THE TAX RATE APPLIED?
3) If the total capital more that 2.5 million the tax rate will
be –
i) 25% in YA2014 and YA 2015
ii) 24% in YA2016
Para 2, 2D, 2E & 2F Sch 1, ITA 1967
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Budget
2015

11. WHO WILL PAID FOR TAX BEFORE CONVERSION?
Entity Party
Conventional partnership
(CP)
Any partner
Limited liability company
(LLC)
Limited Liability Partnership
(LLP)
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The person assessable and chargeable to tax for any tax
prior to conversion – where the assessment raised after the
conversion.
Budget
2015
Sec 75B, ITA 1967

12. WHAT ARE EXEMPTION FROM LLP TAX?
 Any profit paid, credited or distributed to a partner by a
LLP will be exempt from tax.
Para 12C, Sch 6, ITA 1967
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Budget
2013

13. HOW WOULD THE TREATMENT OF UNABSORBED
CAPITAL ALLOWANCE AND BUSINESS LOSS?
 A partnership is allowed to carry forward its unabsorbed
capital allowances to be utilized against the future
income of the LLP,
 A partnership is allowed to carry forward its unabsorbed
business losses to be utilized against the future income
of the LLP,
Para 38(2) & 75AA Sch 3, ITA 1967
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Budget
2013

14. WHEN IS TAX ESTIMATION?
 The LLP is required to submit the tax return, within 3
months from the commencement of business by
submission of CP 204.
Date
The commencement date 1/1/2013
The tax estimation submission 31/3/2013
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15. WHEN IS TAX ESTIMATION?
 The subsequent year, the estimation of tax return is
required to submit 30 days before the commencement
of the new basis year by submission of CP 204.
Date
Tax estimation submission date (YA
2014)
30/11/2013
Following assessment year (YA 2014) 1/1/2014 –
31/12/2014
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16. WHEN CAN REVISED TAX ESTIMATION?
 A LLP is allowed to revise on 6th and 9th month in YA by
submission of CP 204A.
Date
Accounting year end 31/12/2013
6th month revised 30/06/2013
9th month revised 30/09/2013
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17. WHEN TO SUBMIT ANNUAL TAX RETURN?
Date
Accounting Year End (YE) 31/12/2014
Submission of tax return 31/07/2015 form PT
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A LLP is submission Form PT after 7 months of financial
year end

18. THANK YOU
B. H. Loh & Associates
Address :
No. 1-3-15, Goldhill Complex,
Tingkat Paya Terubong 1,
11060 Penang.
H/P No. : 016-4893382
Email : bhlohass@gmail.com
Web-site / facebook : bhloh.com.my
B. H. Loh & Associates
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