- Exemption on Incremental of chargeable income
- Tax Implications Arising From The Companies Act 2016
- Capital Allowance For Ict Equipment, Computer Software Packages And Customised Software
- Double Deduction
- Change Of Accounting Period
- Penalty Rate - Incorrect Tax Return
- Aggressive Tax Planning
- Reinvestment Allowance (RA) & Special RA
Lecture Meeting on Filing of Income-tax Returns for A.Y. 2010-11 by Chetan Shahbcasglobal
The document summarizes key amendments to the Indian Income Tax rates and rules for the 2010-11 assessment year. It outlines new tax rates for individuals, HUFs, women, senior citizens, firms, domestic companies, and foreign companies. It also summarizes changes to sections related to charitable purposes, tax holidays, research and development deductions, cash payment restrictions, partner remuneration, TDS defaults, gift tax, Chapter VI-A deductions, disability deductions, pension contributions, education loans, electoral trusts, MAT rates, LLP taxation, advance tax thresholds, dividend distribution tax, and wealth tax limits.
The document summarizes key changes in India's Budget 2013-2014 for direct taxes. Some key points include:
1) Income tax rates remain unchanged for companies and individuals but surcharge rates were increased for higher income levels.
2) No change in personal income tax slabs but a Rs. 2000 tax credit for those earning up to Rs. 5 lacs.
3) New deductions for first-time home buyers and life insurance policies for certain medical conditions.
4) General anti-avoidance rules will take effect from 2016-17 to curb abusive tax avoidance.
Prime Minister Datuk Seri Najib Razak unveiled Budget 2014 on 25 October 2013, seeking to address a large fiscal deficit, shrinking current account surplus and growing debt pile that are sources of concern for investors and ratings agencies.
The document summarizes tax deduction at source (TDS) rates and provisions for salary income for the financial year 2011-2012 (assessment year 2012-2013) in India. Key points include:
1. TDS rates on salary range from 0-30% depending on the taxpayer's total income, gender, and age.
2. Employers have the option to pay tax on non-monetary perquisites instead of deducting TDS from salary.
3. Tax is to be deducted on the aggregate salary if an individual works for multiple employers.
Publication - RSM India Budget 2016 Key AspectsRSM India
We are pleased to enclose herewith our publication viz. 'India Budget 2016 – Key Aspects'which provides a broad overview of the Union Budget 2016-17 presented on 29thFebruary 2016. While we have largely covered direct and indirect tax proposal of the Indian Government for the fiscal year 2016-17, other major policy initiatives having significant impact on the business in general, have been briefly dealt with.
In the midst of an uncertain global economic outlook, India is emerging as the new ‘global economic hotspot’. The Indian economy is estimated to grow at 7.6% in FY 2015-16 and is expected to grow at 7% to 7.75% in FY 2016-17, making it the fastest growing major economy in the world. The Union Budget 2016 is primarily driven with the objective of accelerating investment in infrastructural sector, fiscal consolidation and reducing litigation.
In our budget publication, we have analysed the significant budget proposals and have additionally included the following reference chapters:
• G20 Countries - Comparative Corporate and Personal Tax Rates
• DTAA Rates
• Tax Incentives for Businesses
• Direct Taxes and Service Tax Compliance Calendar
• TDS Chart
We trust you will find the same useful.
This document discusses tax deductions available to Indian manufacturing companies under Section 80JJAA for additional wages paid to new regular employees. Specifically:
1) Indian manufacturing companies can claim a tax deduction of 30% of additional wages paid to new regular employees for three consecutive years.
2) Additional wages refers to wages paid to new regular employees over 100, or over a 10% increase in regular employees from the previous year.
3) Only manufacturing or production companies qualify for this deduction - service companies like BPOs do not.
Lecture Meeting on Filing of Income-tax Returns for A.Y. 2010-11 by Chetan Shahbcasglobal
The document summarizes key amendments to the Indian Income Tax rates and rules for the 2010-11 assessment year. It outlines new tax rates for individuals, HUFs, women, senior citizens, firms, domestic companies, and foreign companies. It also summarizes changes to sections related to charitable purposes, tax holidays, research and development deductions, cash payment restrictions, partner remuneration, TDS defaults, gift tax, Chapter VI-A deductions, disability deductions, pension contributions, education loans, electoral trusts, MAT rates, LLP taxation, advance tax thresholds, dividend distribution tax, and wealth tax limits.
The document summarizes key changes in India's Budget 2013-2014 for direct taxes. Some key points include:
1) Income tax rates remain unchanged for companies and individuals but surcharge rates were increased for higher income levels.
2) No change in personal income tax slabs but a Rs. 2000 tax credit for those earning up to Rs. 5 lacs.
3) New deductions for first-time home buyers and life insurance policies for certain medical conditions.
4) General anti-avoidance rules will take effect from 2016-17 to curb abusive tax avoidance.
Prime Minister Datuk Seri Najib Razak unveiled Budget 2014 on 25 October 2013, seeking to address a large fiscal deficit, shrinking current account surplus and growing debt pile that are sources of concern for investors and ratings agencies.
The document summarizes tax deduction at source (TDS) rates and provisions for salary income for the financial year 2011-2012 (assessment year 2012-2013) in India. Key points include:
1. TDS rates on salary range from 0-30% depending on the taxpayer's total income, gender, and age.
2. Employers have the option to pay tax on non-monetary perquisites instead of deducting TDS from salary.
3. Tax is to be deducted on the aggregate salary if an individual works for multiple employers.
Publication - RSM India Budget 2016 Key AspectsRSM India
We are pleased to enclose herewith our publication viz. 'India Budget 2016 – Key Aspects'which provides a broad overview of the Union Budget 2016-17 presented on 29thFebruary 2016. While we have largely covered direct and indirect tax proposal of the Indian Government for the fiscal year 2016-17, other major policy initiatives having significant impact on the business in general, have been briefly dealt with.
In the midst of an uncertain global economic outlook, India is emerging as the new ‘global economic hotspot’. The Indian economy is estimated to grow at 7.6% in FY 2015-16 and is expected to grow at 7% to 7.75% in FY 2016-17, making it the fastest growing major economy in the world. The Union Budget 2016 is primarily driven with the objective of accelerating investment in infrastructural sector, fiscal consolidation and reducing litigation.
In our budget publication, we have analysed the significant budget proposals and have additionally included the following reference chapters:
• G20 Countries - Comparative Corporate and Personal Tax Rates
• DTAA Rates
• Tax Incentives for Businesses
• Direct Taxes and Service Tax Compliance Calendar
• TDS Chart
We trust you will find the same useful.
This document discusses tax deductions available to Indian manufacturing companies under Section 80JJAA for additional wages paid to new regular employees. Specifically:
1) Indian manufacturing companies can claim a tax deduction of 30% of additional wages paid to new regular employees for three consecutive years.
2) Additional wages refers to wages paid to new regular employees over 100, or over a 10% increase in regular employees from the previous year.
3) Only manufacturing or production companies qualify for this deduction - service companies like BPOs do not.
This document provides an overview of service tax in Malaysia. It discusses key aspects such as:
- What constitutes a taxable service according to Malaysian law.
- Exemptions for services provided in designated areas and special areas.
- Registration thresholds and requirements for service tax.
- Calculation of service tax including rates, remittance timing, and valuation of supplies.
- Special considerations like group relief, debit/credit notes, and bad debt relief.
The document aims to inform readers on the main principles and compliance aspects of service tax in Malaysia, though it notes that professional advice should be sought, as the content is not a substitute for legal counsel.
This document provides information on the transition from GST to SST in Malaysia, including:
1) Key details about winding down GST such as final returns, pursuing refunds, and pending applications/appeals.
2) An overview of the Sales Tax Act 2018 and Service Tax Act 2018 that will replace GST, including details about registration, taxable goods, rates, and accounting for the new taxes.
3) Guidance for businesses on preparing for the change, such as reviewing their GST position, pursuing outstanding refunds, and understanding their obligations under the new tax system.
Income Tax is an annual charge on a person's income according to the Income Tax Ordinance of 2001. A person may be liable to pay income tax, deduct or collect tax at source, pay tax in advance, pay penalties and fees. Taxable income is total income for the year reduced by allowable deductions. Total income is the sum of income from various heads including salary, property, business, capital gains, and other sources. The document then outlines the definition and treatment of income classified as salary.
Income from salary, deductions and tax planning (2)Snigi1289
The document discusses taxation provisions for salaried employees in India. It outlines key requirements like mandatory income tax return filing. It details tax slabs and cess rates. It provides the due date for filing returns as July 31 every year. It discusses tax planning strategies like salary restructuring and investing in tax saving devices. It elaborates on various tax saving techniques available under sections like 80C, 80D, 80E, 80G, etc. that allow deductions and exemptions. Finally, it emphasizes the importance of filing returns for benefits like refund claims, loans, visas, and as income proof.
The document discusses the Income Declaration Scheme, 2016 introduced by the Government of India to allow voluntary declaration of previously undisclosed income. It provides an overview of key aspects of the scheme such as eligible income, tax rates, declaration process, benefits of declaring under the scheme versus non-disclosure, critical dates and FAQs. Key benefits include immunity from prosecution, penalty and reopening of past assessments for declared income. Undisclosed income must be for periods prior to FY 2016-17 and total tax, surcharge and penalty is 45% of undisclosed income.
This document provides information about an Advanced Taxation course for Tax Year 2019 taught by Fawad Hassan. It outlines the syllabus, practice material, expectations, and income tax framework. The syllabus focuses on Income Tax (50-55%), Sales Tax (30-35%), and Federal Excise Law (10-15%). The document explains key income tax concepts like the tax year, types of persons, residential status, tax regimes, geographical source of income, and apportionment of deductions in 3 sentences or less.
This document provides highlights of the Union Budget 2014-2015 for India. Some key points include:
- The basic income tax exemption limit has been increased by Rs. 50,000. Tax rates remain unchanged.
- Deduction limits under Section 80C have been increased from Rs. 100,000 to Rs. 150,000.
- Service tax rate remains at 12% and is extended to new services like radio taxis.
- Exemptions under the mega exemption notification have been extended to some services and withdrawn from others.
- Changes have been made to provisions around interest on late payment of taxes, e-payment of service tax, and the reverse charge mechanism.
Income Of Other Persons, Included In Assesses Total IncomeAdmin SBS
Who is an assessee?
Extract of sec 2(7)(a)
Assessee means a person by whom any tax or any other sum of money is payable under this Act, and includes
every person in respect of whom any proceeding under this Act has been taken for the assessment of HIS income or
of the Income of any other person in respect of which he is assessable
or of the loss sustained by him or by such other person
or of the amount of refund due to him or to such other person
The document summarizes key highlights of the Union Budget 2014-2015 for direct and indirect taxes in India. For direct taxes, it outlines changes to income tax slabs and rates for individuals, senior citizens, companies and firms. It also discusses changes to deductions, exemptions and tax rates for capital gains and dividends. For indirect taxes, it summarizes changes to service tax rates and exemptions, and introduces service tax on radio taxis. It also discusses changes to interest rates on late payment of taxes.
1 highlights of income tax provisions in budget 2018Subramanya Bhat
The document summarizes key changes to India's income tax provisions in the 2018 budget. Some key points:
- Long-term capital gains (LTCG) over Rs. 1 lakh from listed equity shares will now be taxed at 10%. All LTCG until January 31, 2018 will be exempt.
- Standard deduction of Rs. 40,000 introduced for salaried employees in lieu of transport/medical exemptions.
- Deduction limits for senior citizens increased for interest income, health insurance premiums, and medical expenditure.
- Corporate tax rate reduced to 25% for domestic companies with turnover up to Rs. 250 crores.
The document provides highlights of key changes in direct taxes in the Indian Budget 2016-2017. Some key points include:
- The income tax rates and slabs for individuals, senior citizens, domestic companies, foreign companies, and firms remain largely unchanged.
- The basic exemption limit for individuals is unchanged, but the rebate under section 87A has increased from Rs. 2,000 to Rs. 5,000 for income less than Rs. 5 lakhs.
- Surcharge rates have increased for individuals with income over Rs. 1 crore and domestic companies with income over Rs. 10 crores.
- New provisions introduce tax benefits for newly setup domestic manufacturing companies and eligible startups.
Advanced taxation (cfap5) by fawad hassan [lecture3]Fawad Hassan
1. The document discusses income from salary under the Income Tax Ordinance, 2001. It covers key definitions, principles of taxation, exemptions and perquisites related to salary income.
2. Some of the important aspects covered include the geographical source of income, basis of taxation as cash or accrual, treatment of foreign source income for residents and non-residents, and valuation of perquisites like conveyance and accommodation.
3. The document also discusses various deductions, exemptions and tax treatment of items like pensions, gratuity, provident funds, loans and employee share schemes.
This section provides a deduction for profits and gains from businesses that collect and process bio-degradable waste. It is available to taxpayers whose income includes profits from collecting and processing bio-degradable waste to generate power, produce bio-fertilizers, bio-pesticides, biological agents, bio-gas, or make pellets/briquettes for fuel or organic manure. The deduction equals the full amount of such profits and gains over 5 consecutive years starting from when the qualifying business commences.
Tax Planning in China - Individual Income TaxNCO China
This document provides an overview of individual income tax (IIT) for expatriates working in China. It discusses how IIT is determined based on length of stay and income source. For employment income, IIT is calculated by subtracting a monthly deduction from monthly salary and applying tax rates from 5-45%. Service contract income IIT subtracts 20% of fees over RMB4,000 as a monthly deduction before applying tax rates from 20-40%. Expats with over RMB120,000 annual income or salaries from multiple companies must declare IIT to authorities within three months of the tax year. The document provides examples of IIT calculations and offers some tax planning tips.
The document discusses India's Income Declaration Scheme 2016, which aims to bring undisclosed foreign income and assets into the tax system. It provides an opportunity for taxpayers to declare undisclosed income and pay taxes at 45%, and gain immunity from prosecution. However, taxpayers cannot take benefit if their case is already under investigation. The scheme is seen as more beneficial than the previous Black Money Act, but failing to disclose under the scheme risks penalties and prosecution under normal tax laws. In conclusion, the scheme provides a chance for tax evaders to clean up their finances through a moderate tax payment.
An Analysis of Budget 2018-19 and details impact analysis on your investment. Simple Strategy, Suggesting for efficient Tax Planning and wealth creation for Long Term
This document provides an overview of service tax in Malaysia. It discusses key aspects such as:
- What constitutes a taxable service according to Malaysian law.
- Exemptions for services provided in designated areas and special areas.
- Registration thresholds and requirements for service tax.
- Calculation of service tax including rates, remittance timing, and valuation of supplies.
- Special considerations like group relief, debit/credit notes, and bad debt relief.
The document aims to inform readers on the main principles and compliance aspects of service tax in Malaysia, though it notes that professional advice should be sought, as the content is not a substitute for legal counsel.
This document provides information on the transition from GST to SST in Malaysia, including:
1) Key details about winding down GST such as final returns, pursuing refunds, and pending applications/appeals.
2) An overview of the Sales Tax Act 2018 and Service Tax Act 2018 that will replace GST, including details about registration, taxable goods, rates, and accounting for the new taxes.
3) Guidance for businesses on preparing for the change, such as reviewing their GST position, pursuing outstanding refunds, and understanding their obligations under the new tax system.
Income Tax is an annual charge on a person's income according to the Income Tax Ordinance of 2001. A person may be liable to pay income tax, deduct or collect tax at source, pay tax in advance, pay penalties and fees. Taxable income is total income for the year reduced by allowable deductions. Total income is the sum of income from various heads including salary, property, business, capital gains, and other sources. The document then outlines the definition and treatment of income classified as salary.
Income from salary, deductions and tax planning (2)Snigi1289
The document discusses taxation provisions for salaried employees in India. It outlines key requirements like mandatory income tax return filing. It details tax slabs and cess rates. It provides the due date for filing returns as July 31 every year. It discusses tax planning strategies like salary restructuring and investing in tax saving devices. It elaborates on various tax saving techniques available under sections like 80C, 80D, 80E, 80G, etc. that allow deductions and exemptions. Finally, it emphasizes the importance of filing returns for benefits like refund claims, loans, visas, and as income proof.
The document discusses the Income Declaration Scheme, 2016 introduced by the Government of India to allow voluntary declaration of previously undisclosed income. It provides an overview of key aspects of the scheme such as eligible income, tax rates, declaration process, benefits of declaring under the scheme versus non-disclosure, critical dates and FAQs. Key benefits include immunity from prosecution, penalty and reopening of past assessments for declared income. Undisclosed income must be for periods prior to FY 2016-17 and total tax, surcharge and penalty is 45% of undisclosed income.
This document provides information about an Advanced Taxation course for Tax Year 2019 taught by Fawad Hassan. It outlines the syllabus, practice material, expectations, and income tax framework. The syllabus focuses on Income Tax (50-55%), Sales Tax (30-35%), and Federal Excise Law (10-15%). The document explains key income tax concepts like the tax year, types of persons, residential status, tax regimes, geographical source of income, and apportionment of deductions in 3 sentences or less.
This document provides highlights of the Union Budget 2014-2015 for India. Some key points include:
- The basic income tax exemption limit has been increased by Rs. 50,000. Tax rates remain unchanged.
- Deduction limits under Section 80C have been increased from Rs. 100,000 to Rs. 150,000.
- Service tax rate remains at 12% and is extended to new services like radio taxis.
- Exemptions under the mega exemption notification have been extended to some services and withdrawn from others.
- Changes have been made to provisions around interest on late payment of taxes, e-payment of service tax, and the reverse charge mechanism.
Income Of Other Persons, Included In Assesses Total IncomeAdmin SBS
Who is an assessee?
Extract of sec 2(7)(a)
Assessee means a person by whom any tax or any other sum of money is payable under this Act, and includes
every person in respect of whom any proceeding under this Act has been taken for the assessment of HIS income or
of the Income of any other person in respect of which he is assessable
or of the loss sustained by him or by such other person
or of the amount of refund due to him or to such other person
The document summarizes key highlights of the Union Budget 2014-2015 for direct and indirect taxes in India. For direct taxes, it outlines changes to income tax slabs and rates for individuals, senior citizens, companies and firms. It also discusses changes to deductions, exemptions and tax rates for capital gains and dividends. For indirect taxes, it summarizes changes to service tax rates and exemptions, and introduces service tax on radio taxis. It also discusses changes to interest rates on late payment of taxes.
1 highlights of income tax provisions in budget 2018Subramanya Bhat
The document summarizes key changes to India's income tax provisions in the 2018 budget. Some key points:
- Long-term capital gains (LTCG) over Rs. 1 lakh from listed equity shares will now be taxed at 10%. All LTCG until January 31, 2018 will be exempt.
- Standard deduction of Rs. 40,000 introduced for salaried employees in lieu of transport/medical exemptions.
- Deduction limits for senior citizens increased for interest income, health insurance premiums, and medical expenditure.
- Corporate tax rate reduced to 25% for domestic companies with turnover up to Rs. 250 crores.
The document provides highlights of key changes in direct taxes in the Indian Budget 2016-2017. Some key points include:
- The income tax rates and slabs for individuals, senior citizens, domestic companies, foreign companies, and firms remain largely unchanged.
- The basic exemption limit for individuals is unchanged, but the rebate under section 87A has increased from Rs. 2,000 to Rs. 5,000 for income less than Rs. 5 lakhs.
- Surcharge rates have increased for individuals with income over Rs. 1 crore and domestic companies with income over Rs. 10 crores.
- New provisions introduce tax benefits for newly setup domestic manufacturing companies and eligible startups.
Advanced taxation (cfap5) by fawad hassan [lecture3]Fawad Hassan
1. The document discusses income from salary under the Income Tax Ordinance, 2001. It covers key definitions, principles of taxation, exemptions and perquisites related to salary income.
2. Some of the important aspects covered include the geographical source of income, basis of taxation as cash or accrual, treatment of foreign source income for residents and non-residents, and valuation of perquisites like conveyance and accommodation.
3. The document also discusses various deductions, exemptions and tax treatment of items like pensions, gratuity, provident funds, loans and employee share schemes.
This section provides a deduction for profits and gains from businesses that collect and process bio-degradable waste. It is available to taxpayers whose income includes profits from collecting and processing bio-degradable waste to generate power, produce bio-fertilizers, bio-pesticides, biological agents, bio-gas, or make pellets/briquettes for fuel or organic manure. The deduction equals the full amount of such profits and gains over 5 consecutive years starting from when the qualifying business commences.
Tax Planning in China - Individual Income TaxNCO China
This document provides an overview of individual income tax (IIT) for expatriates working in China. It discusses how IIT is determined based on length of stay and income source. For employment income, IIT is calculated by subtracting a monthly deduction from monthly salary and applying tax rates from 5-45%. Service contract income IIT subtracts 20% of fees over RMB4,000 as a monthly deduction before applying tax rates from 20-40%. Expats with over RMB120,000 annual income or salaries from multiple companies must declare IIT to authorities within three months of the tax year. The document provides examples of IIT calculations and offers some tax planning tips.
The document discusses India's Income Declaration Scheme 2016, which aims to bring undisclosed foreign income and assets into the tax system. It provides an opportunity for taxpayers to declare undisclosed income and pay taxes at 45%, and gain immunity from prosecution. However, taxpayers cannot take benefit if their case is already under investigation. The scheme is seen as more beneficial than the previous Black Money Act, but failing to disclose under the scheme risks penalties and prosecution under normal tax laws. In conclusion, the scheme provides a chance for tax evaders to clean up their finances through a moderate tax payment.
An Analysis of Budget 2018-19 and details impact analysis on your investment. Simple Strategy, Suggesting for efficient Tax Planning and wealth creation for Long Term
This document provides a summary of tax rates and allowances that were announced in the UK Budget 2014. It includes income tax rates, personal allowances, national insurance contributions rates, pension limits, capital gains tax rates, inheritance tax nil rate bands, business property relief, corporation tax rates, VAT registration thresholds, stamp duty land tax bands, and annual tax rates for enveloped dwellings. The summary acts as a guide and individuals should seek specific advice for their own circumstances.
The document summarizes key proposed changes in the Income Tax Act 2023 in Bangladesh. Some of the major changes include:
- Reducing the number of tax return statements from 29 to 12 to simplify the return filing process.
- Providing a comprehensive list of deductible business expenses with new structures for general and specific deductions.
- Widening the caps on expense limits and including new areas for tax deductions to make the tax system more investment and business friendly.
- Introducing provisions to better align the tax laws with international financial reporting standards (IFRS) and address differences between IFRS and tax laws.
This document discusses taxation and the process of filing monthly tax returns and remittances with the Bureau of Internal Revenue (BIR) in the Philippines. It defines taxation as the act of imposing charges by the government to raise funds for public purposes in exchange for protection. It also provides details on how to apply for a Taxpayer Identification Number, examples of computing income tax withholdings, percentage tax, and value-added tax, and penalties for late or fraudulent filings.
This document provides information on transitional issues related to the implementation of sales tax (SST) in Malaysia. It discusses how businesses can claim input tax credit for up to 120 days after SST takes effect. It also addresses the treatment of stock on hand for manufacturers who were previously GST registered. The document outlines various transitional issues that businesses need to be aware of, such as how to account for goods and retention sums during the transition period. It provides guidance on determining if a good is taxable and explains concepts like tariff codes, designated and special areas for sales tax, and the definition of manufacturing.
The document discusses various aspects of income tax in India including:
- The five main heads of income according to the Income Tax Act of 1961: salary, house property, business/profession, capital gains, other sources.
- Tax slabs and rates for individual citizens, senior citizens, and super senior citizens.
- Common deductions that can be claimed under income tax like 80C, 80D, 80TTA, standard deduction, interest on housing loan.
- Methods of calculating taxable income by accounting for gross total income and deductions for different income sources.
The document summarizes key changes to the Indian Income Tax law. Some of the major changes include:
- The corporate tax rate has been reduced to 25% for domestic companies with turnover less than 250 crores in FY 2016-17.
- Long term capital gains from equity shares exceeding 1 lakh will be taxed at 10%.
- Deductions have been increased for medical expenditures for senior citizens to Rs. 50,000 and Rs. 1 lakh for very senior citizens.
- Benefits have been extended to startups including a 100% deduction for 3 years for eligible startups incorporated between April 1, 2019 to March 31, 2021 with turnover less than 25 crores.
The document summarizes key proposals from the Indian Union Budget 2018-19. Some highlights include:
- Long term capital gains tax of 10% introduced for gains over Rs. 1 lakh from sale of equity shares.
- Standard deduction of Rs. 40,000 introduced for salary income.
- Tax benefits for startups extended and eligibility criteria expanded.
- Corporate tax rate reduced to 25% for companies with turnover up to Rs. 250 crores.
- Several goods and services brought under lower GST rates of 5%, 12%, and 18%.
This document provides a summary of tax rates and allowances that were announced in the UK Budget 2014. It includes income tax rates, personal tax allowances, national insurance contribution rates, capital gains tax rates, inheritance tax allowances, corporation tax rates, VAT rates, stamp duty land tax rates and other tax relief thresholds. The summary is intended to be a basic guide and specific advice should be obtained for individual circumstances.
The document summarizes direct tax proposals in the Indian Budget for 2016-2017, including:
- Threshold income limits and tax rates will largely remain the same, with some small increases to rebates and limits. Surcharge will be increased for higher income levels.
- New tax incentives are proposed for start-ups. Several deductions will be phased out over time, with lower percentages allowed until full removal.
- Changes also include increased TDS thresholds, taxation of dividends over Rs. 10 lakhs, and introduction of presumptive taxation schemes for professionals and businesses with income under Rs. 50-100 lakhs.
Budget 2016-2017 - analysis of direct tax proposalsoswinfo
This document provides an analysis of key changes proposed in the Indian Budget 2016 relating to direct taxes. Some key points summarized are:
1. No change in basic tax exemption limits and rates for individuals. Surcharge of 15% for income over Rs. 1 crore. Section 87A rebate limit increased to Rs. 5,000. Section 80GG deduction limit for individuals without HRA enhanced to Rs. 5,000 per month.
2. Section 80CCC deduction limit increased from Rs. 1 lakh to Rs. 1.5 lakh. Section 10(12) and 10(13) exemptions for provident fund and superannuation fund limited to 40% of accumulated amount for contributions made
The document summarizes key highlights from India's 2010-2011 budget related to indirect taxes, direct taxes, deductions and exemptions, and tax rates. Some key points include:
- Service tax rate remained unchanged at 10% but new services were taxed, while some services were excluded.
- Income tax slabs and exemption limits for individuals remained largely unchanged. Surcharge on personal income tax was removed.
- Corporate tax rate remained at 30% for domestic companies. MAT was increased to 18% and surcharge reduced to 7.5% for companies with income over Rs. 1 Crore.
- Deductions were introduced or increased for infrastructure bonds, health insurance, and research and development expenditures.
The document summarizes key amendments made in the Finance Act 2011 relating to income tax slabs, deductions, exemptions, and tax rates. Some key points include:
- The income tax slabs for individual/HUF taxpayers were increased from Rs. 1,60,000 to Rs. 1,80,000 providing a tax benefit of Rs. 2060.
- The age limit for senior citizens for income tax purposes was reduced from 65 to 60 years and further classified into two categories based on age.
- Deductions under section 80C, 80CCC, and 80CCD were amended and the contribution made under section 80CCD was excluded from the overall deduction limit of Rs. 1,
08. return and statement ICAB, KL, Study Manual
08. return and statement ICAB, KL, Study Manual
08. return and statement ICAB, KL, Study Manual
08. return and statement ICAB, KL, Study Manual
08. return and statement ICAB, KL, Study Manual
The document discusses the key provisions and recent changes made to the Income Tax audit process in India.
Some of the key points include:
- Tax audit is required if business turnover exceeds Rs. 1 crore or professional receipts exceed Rs. 50 lakhs
- Form 3CD must be submitted by the auditor by 30th September of the assessment year
- Recent changes to Form 3CD include additional reporting for GST, capital gains, gifts received, transfer pricing adjustments, and cash transactions over Rs. 2 lakhs
- New clauses have been added for secondary adjustments, interest deduction limitations, GAAR impacted transactions, and reporting of specified financial transactions
Lifting the Corporate Veil. Power Point Presentationseri bangash
"Lifting the Corporate Veil" is a legal concept that refers to the judicial act of disregarding the separate legal personality of a corporation or limited liability company (LLC). Normally, a corporation is considered a legal entity separate from its shareholders or members, meaning that the personal assets of shareholders or members are protected from the liabilities of the corporation. However, there are certain situations where courts may decide to "pierce" or "lift" the corporate veil, holding shareholders or members personally liable for the debts or actions of the corporation.
Here are some common scenarios in which courts might lift the corporate veil:
Fraud or Illegality: If shareholders or members use the corporate structure to perpetrate fraud, evade legal obligations, or engage in illegal activities, courts may disregard the corporate entity and hold those individuals personally liable.
Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
Matthew Professional CV experienced Government LiaisonMattGardner52
As an experienced Government Liaison, I have demonstrated expertise in Corporate Governance. My skill set includes senior-level management in Contract Management, Legal Support, and Diplomatic Relations. I have also gained proficiency as a Corporate Liaison, utilizing my strong background in accounting, finance, and legal, with a Bachelor's degree (B.A.) from California State University. My Administrative Skills further strengthen my ability to contribute to the growth and success of any organization.
Receivership and liquidation Accounts
Being a Paper Presented at Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) on Friday, August 18, 2023.
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Massimo Talia
This guide aims to provide information on how lawyers will be able to use the opportunities provided by AI tools and how such tools could help the business processes of small firms. Its objective is to provide lawyers with some background to understand what they can and cannot realistically expect from these products. This guide aims to give a reference point for small law practices in the EU
against which they can evaluate those classes of AI applications that are probably the most relevant for them.
This document briefly explains the June compliance calendar 2024 with income tax returns, PF, ESI, and important due dates, forms to be filled out, periods, and who should file them?.
सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
Business law for the students of undergraduate level. The presentation contains the summary of all the chapters under the syllabus of State University, Contract Act, Sale of Goods Act, Negotiable Instrument Act, Partnership Act, Limited Liability Act, Consumer Protection Act.
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Presentation slides for a session held on June 4, 2024, at Kyoto University. This presentation is based on the presenter’s recent paper, coauthored with Hwang Lee, Professor, Korea University, with the same title, published in the Journal of Business Administration & Law, Volume 34, No. 2 (April 2024). The paper, written in Korean, is available at <https://shorturl.at/GCWcI>.
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The legal profession, which has historically been male-dominated, has experienced a significant increase in the number of women entering the field over the past few decades. Despite this progress, women lawyers continue to encounter various challenges as they strive for top positions.
Genocide in International Criminal Law.pptxMasoudZamani13
Excited to share insights from my recent presentation on genocide! 💡 In light of ongoing debates, it's crucial to delve into the nuances of this grave crime.
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
“CURRENT TAX ISSUES”
Prepared by: Chan Zi Yun (Hadey)
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reliance in whole or any part of this contents.
REDUCTION IN CORPORATE TAX RATE
- EXEMPTION ON INCREMENTAL OF CHARGEABLE INCOME
% of Increase in Business Chargeable
Income as Compared to Immediate
Preceding YA
% Point Reduction
Reduced Tax Rate Applicable
to the Incremental Business
Income (%)
less than 5.00% NIL 24
5.00% - 9.99% 1 23
10.00% - 14.99% 2 22
15.00% - 19.99% 3 21
20.00% and above 4 20
Gazette Order - Income Tax (Exemption)(No.2) Order 2017
[P.U.(A)117/2017]
*** Applicable to YA 2017 and YA 2018 only
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reliance in whole or any part of this contents.
the incremental amount of chargeable income shall be ascertained
without regard to any unabsorbed loss or unabsorbed allowance in the
YA and the YA immediately preceding that YA pursuant to - ….
Paragraph 4(4) of the Order
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
Example - para 4(4) of the Order
YA 2016
Without applying the Order
Note:-
(1) Reinvestment allowance
(2) Losses
RM Note
Statutory Business Income 1,000,000
Less: Reinvestment Allowance (700,000) 1
300,000
Less: Losses b/f (100,000) 2
Chargeable Income 200,000
RM
Balance b/f 1,000,000
Add: Current year claim 500,000
1,500,000
Less: Amount utilised (700,000)
Balance c/f 800,000
RM
Balance b/f 100,000
Add: Amount utilised (100,000)
Balance c/f -
Applying the Order
Note:-
(1) Reinvestment allowance
(2) Losses
RM Note
Statutory Business Income 1,000,000
Less: Reinvestment Allowance (500,000) 1
Chargeable Income 500,000
RM
Balance b/f 1,000,000 (Disregarded)
Add: Current year claim 500,000
Less: Amount utilised (500,000)
Balance c/f -
RM
Balance b/f 100,000 (Disregarded)
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
Example - para 4(4) of the Order
YA 2017
Without applying the P.U. Order
Note:-
(1) Reinvestment allowance
RM Note
Statutory Business Income 1,000,000
Less: Reinvestment Allowance (700,000) 1
300,000
RM
Balance b/f 800,000
Less: Amount utilised (700,000)
Balance c/f 100,000
Applying the P.U. Order
Note:-
(1) Reinvestment allowance
RM Note
Statutory Business Income /
Chargeable Income 1,000,000 1
RM
Balance b/f 800,000 (Disregarded)
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
FOR SME, CHARGEABLE INCOME < RM500K
YA 2016 YA 2017
RM RM
Statutory Business Income 70,000 260,000
Rental Income under Section 4(d) 60,000 120,000
Interest Income under Section 4(c) 10,000 80,000
Aggregate Income 140,000 460,000
Less: Donation 30,000
Chargeable Income 140,000 430,000
Example:-
Step 1:
Calculate the IACI (from a business source)
* The formula is to calculate the amount after deducting approved donation
= (
RM260,000
x RM430,000 ) - (
RM70,000
x RM140,000 )
RM460,000 RM140,000
= RM243,043
-
RM70,000
= RM173,043
A B
A-B
IACI is part of the amount of the first RM500k of Chargeable Income
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
Step 2:
Calculate the percentage of IACI (from business sources)
* For increase in chargeable income of 93.60%, the reduced tax rate to be used in Step 3 is 20%
=
IACI
x 100%
Chargeable income (from business sources) for YA2016
=
RM173,043
x 100%
RM70,000
= 247.20%
B
A-B
Step 3:
Calculate the exempted chargeable income from the carrying on of a business for YA2017
* Step 3 is NOT applicable since the IACI is part of the amount of the first RM500,000 of the chargeable income in the
basis period for the YA and hence the exemption under the Order shall not apply.
Step 4:
Calculate the tax payable for YA2017
RM430,000 x 18% = RM77,400
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reliance in whole or any part of this contents.
FOR SME, CHARGEABLE INCOME > RM500K
YA 2016 YA 2017
RM RM
Statutory Business Income 370,000 780,000
Rental Income under Section 4(d) 60,000 120,000
Interest Income under Section 4(c) 10,000 80,000
Aggregate Income 440,000 980,000
Less: Donation 80,000
Chargeable Income 440,000 900,000
Example:-
Step 1:
Calculate the IACI (from a business source)
* The formula is to calculate the amount after deducting approved donation
= (
RM780,000
x RM900,000 ) - (
RM370,000
x RM440,000 )
RM980,000 RM440,000
= RM716,327
-
RM370,000
= RM346,327
A B
A-B
IACI is NOT part of the amount of the first RM500k of Chargeable Income
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
Step 2:
Calculate the percentage of IACI (from business sources)
* For increase in chargeable income of 93.60%, the reduced tax rate to be used in Step 3 is 20%
=
IACI
x 100%
Chargeable income (from business sources) for YA2016
=
RM346,327
x 100%
RM370,000
= 93.60%
B
A-B
Step 3:
Calculate the exempted chargeable income from the carrying on of a business for YA2017
=
(RM216,327 x 24%) - (RM216,327 x 20%)
x RM216,327
RM216,327 x 24%
= (
RM51,918 - RM43,265
) x RM216,327
RM51,918
= RM36,054
RM500,000 - RM370,000 =RM130,000 not subject to exemption for YA2016 (tax rate 18%, <20%)
RM346,327 - RM130,000 = RM216,327 subject to exemption
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
Step 4:
Calculate the tax payable for YA2017
Effectively, the company’s total Chargeable Income of RM900,000 is taxed as follow:-
Net Chargeable Income = Chargeable Income - Exempted Chargeable Income
= RM900,000 - RM36,054
= RM863,946
Chargeable Income Prevailing tax rate Tax Payable
(RM) (%) (RM)
First
500,000 x 18 90,000
Next 363,946 x 24 87,347
863,946 177,347
Chargeable Income Prevailing tax rate Tax Payable
(RM) (%) (RM)
500,000 x 18 90,000
216,327 x 20 43,265
183,673 x 24 44,081
900,000 177,347
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
“This Order shall NOT apply to a qualifying person who in the basis period for a YA-
(a) has made a claim for reinvestment allowance under Schedule 7A or investment allowance under Schedule 7B;
(b) have been granted any incentive under Promotion of Investments Act 1986;
(c) have been granted an exemption under Section 127;
(d) have made a claim for group relief under Section 44A;
(e) is an investment holding company under Section 60F or Section 60FA;
(f) is a unit trust which is defined under subsection 63C(5);
(g) has a debt that has been released under subsection 30(4) – waiver of debt ”
*** mutual and exclusively
To avoid the loophole of taxpayers taking advantage to enjoy the exemption on incremental chargeable income in respect of
debts (loan and advances) waived by its related companies.
MIA request IRB to grant a concession for cases where taxpayers obtain genuine trade discounts from their suppliers in the
ordinary course of business (purchase goods/services, so that they can continue enjoy the exemption under the Order.
IRB’s reply :
if the trade discount mentioned above is related to the routine business activity then it is not subject to subsection 30 (4)
ITA1967. However, if the trade discount has an element of debt discharged such as loan debt or advances from a related
company which is released, it is subject to such subsection.
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
TAX IMPLICATIONS ARISING FROM THE
COMPANIES ACT 2016
1. Exemption from Appointment of Auditor under Section 267(2) of Company Act 2016 (Practice Directive No. 3/2017 -
Qualifying Criteria for Audit Exemption for Certain Categories of Private Companies)
➤ Section 77A of Income Tax Act 1967 requires an Income tax return to be furnished based on Audited Financial
Statements
➤ IRB has previously clarified that, if it stipulate under Company Act 1965 that a company is not required to submit
audited financial statements, then S77A(4) would not apply to the company. However, the company must submit its
income tax return based on information in the final accounts. (Announcement by IRB dated 19 March 2014, but this
Section 77A(4) makes reference to CA1965. Therefore, would need to be amended to take cognizance of the CA2016
which became effective from 31 January 2017).
Conclusion:-
➤ Minutes of Desire Meeting No. 1/2018 on 1/4/2018 (dialog) – IRB agree, follow SSM practice
* For those companies qualified for audit exemption, can use full set of management account (must keep all the
supporting documents)
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
2. Abolishment of Share Premium Account
• Section 618 of CA 2016 - share premium account & capital redemption reserve will no longer be applicable
• Section 74 of CA2016 - any amount standing in credit in the company’s share premium accounts and capital redemption
reserve shall become part of the company’s share capital
ie. Previously
Paid up capital - RM2million
Share premium - RM1million
∴ SME
Currently
Share caital - RM3million (RM2million + RM1million)
∴ not SME
A transitional period of 24 months will be given for companies to utilise the amount standing in credit in company’s share
premium accounts
➤ The above will eventually increase the paid-up capital of a company.
➤ Therefore, how will this impact the definition of SME in para 2A, Schedule 1 of ITA1967 and gazette order? (ie. will be
amended? )
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
CAPITAL ALLOWANCE FOR ICT EQUIPMENT, COMPUTER
SOFTWARE PACKAGES AND CUSTOMISED SOFTWARE
Before Budget 2018
Budget 2018 : IRB will be issuing detailed guidelines/rules
ICT Equipment and Computer Software Package
IA 20% AA 80%
(up to YA 2016)
Development of customised software - consultation fee,
licensing fee and incidental fee
No deduction and No CA
ICT Equipment and Computer Software Package
IA 20% AA 20%
(WEF YA 2017) - Gazette Order P.U.(A) 156/2018)
Development of customised software - consultation fee,
licensing fee and incidental fee
IA 20% AA 20%
(WEF YA 2018)
Still waiting for detailed gazette order
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reliance in whole or any part of this contents.
DOUBLE DEDUCTION
(1) Employment of Disable Person
Previously
Remuneration paid to handicapped employees (must have OKU certificate)
Currently
Salary paid to employee who has been affected by accidents or critical illnesses and certified by Medical Board of SOCSO
that he/she is able to work within his/her capabilities
ie.
injury recovery
Salary paid entitle to DD
WEF: YA2018
(2) Expenses Incurred in Obtaining Certificate for Quality Systems and Standards
- Not being capital expenditure
- Obtain certificate from approved certification bodies be given to companies registered with M’sia Healthcare Travel
Council that provide dental and ambulatory healthcare services
WEF: YA2018
Question is how to determine
the recovery?
∴ Waiting for the gazette
order
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reliance in whole or any part of this contents.
CHANGE OF ACCOUNTING PERIOD
New Section 21A(3A) of ITA 1967 introduced to provide that where a company, limited liability partnership, trust body or co-
operative society has changed its accounting period, shall notify DGIR in a prescribed form, CP204B:-
• in the case where the accounting period is shorten, 30 days before the end of the new accounting period; or
• in the case where the accounting period is lengthen, 30 days before the end of the original accounting period; or
WEF: YA2019
Failure to comply with S21A(3A) upon conviction be liable to
- a fine of not less than RM200 and not more than RM20,000; or
- imprisonment for a term not exceeding 6 months; or
- Both
WEF: 30th December 2017
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reliance in whole or any part of this contents.
PENALTY RATE - INCORRECT TAX RETURN
Incorrect tax return:-
Penalty rate (based on
S113(2) ITA)
Concessionary penalty rate
(Tax Audit Framework 2015)
Concessionary penalty rate
(Tax Audit Framework 2017)
(i) Voluntary disclosure before
case is selected for audit
up to 100%
“x” period from the due date for furnishing
the tax return:
- within 60 days : 10%
- after 60 days to 6 months : 15.5% (10% +
5%)
- After 6 months to 1 year : 20%
- After 1 years to 3 years :25%
- Beyond 3 years : 30%
“x” period from the due date for
furnishing the tax return:
- within 60 days : 10%
- after 60 days to 6 months : 15.5%
(10% + 5%)
- Beyond 6 months : 35%
(ii) Voluntary disclosure after
case has been selected for
audit but before
commencement of audit
up to 100% 35%
No reduced penalties for voluntary
disclosure after audit has commenced
(iii) Discovery during a tax
audit
up to 100% 45%
45%
Note: 100% penalty if repeated
offence after letter of “Deliberate Tax
Defaulter” has been issued to taxpayer
Imposition of Maximum penalty under S113(2) of ITA from 1 January 2018, announced by IRB on 17 April 2017
➤ Implementation of the above will be deferred until further notice from IRB, due to new government
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
AGGRESSIVE TAX PLANNING
TAX AVOIDANCE (ATP) TAX MITIGATION
Tax driven Tax savings is secondary or incidental
No commercial justification
- Commercially justified
- Consequent to the requirements of law
- Accepted business practices
General Anti-Avoidance Rules (GAAR) &
Specific Anti-Avoidance Rules (SAAR)
Permissible
General Anti-Avoidance Rules (GAAR) Specific Anti-Avoidance Rules (SAAR)
Section 140(1) of ITA1967
DG has reason to believe that any transaction has the direct
or indirect effect of:-
(a)altering the incidence of tax…
(b)relieving any person form any liability which has arisen…
(c)evading or avoiding any duty or liability which is
imposed…
(d)hindering or preventing the operation of this Act
Section 44A
Group relief for companies - have to pass the 70% residual
profits and residual asset test
Section 140A
Power to substitute the price and disallowance of interest
on certain transactions
Section 140B
Loans or advances to directors
Section 141
Powers regarding certain transactions by non-residents
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reliance in whole or any part of this contents.
Sabah Berjaya Sdn Bhd v KPHDN (1999)
Donations instead of dividend payment to Sabah Foundation
Decision:-
- Income tax is mitigated by a taxpayer who reduces his expenditure in circumstances which reduce his assessable
income
- Arranging one’s affairs to enjoy a tax benefit which is permissible under the ITA does not amount to tax avoidance
Sabah Foundation
(approved institution under
S44(6) of ITA1967)
- Holding Company -
Sabah Berjaya Sdn Bhd
shares
Supposed give dividend to
Sabah Foundation, instead
of donation
tax
deducted
not tax
deducted
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
REINVESTMENT ALLOWANCE (RA)
Qualifying capital expenditure incurred on:
- Factory building
- Plant and machinery
***meaning of Factory:
Prior to YA 2012 - as defined in Sch 3
From 2012 onward, the term “factory” is now defined in
Schedule 7A of ITA 1967
“portion of the floor areas of a building or an extensions
of a building used for the purpose of qualifying project
to place or install plant or machinery or to store any raw
materials, or goods or materials manufactured prior to
sales; provided that in respect of portion of the building
or extension of the building used for the storage of raw
material, or goods or materials, or both, it shall not be
more than 1/10 of the total floor areas of that building
or extension”
For the purpose of qualifying project:
Building used for manufacturing
activities
(not a qualifying project)
Extension of building used
for a qualifying project –
diversification
Storage
space
≤10%
RA is allowed on 100% of the total
floor areas extended that is
considered a factory as the
factory area used as storage space
is less than 10% of the total floor
area of the extension
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
REINVESTMENT ALLOWANCE (RA)
***meaning of Plant and machinery:
Definition in Schedule 7A (WEF 2016)
“Machinery” means a device or apparatus consisting of fixed and
moving parts that work together to perform function in respect of
a manufacturing activity, which is directly used in carrying out that
activity in a factory
“Plant” means an apparatus used in respect of a manufacturing
activity, which is directly used in carrying out that activity in a
factory
- includes whatever apparatus used in respect
of the manufacturing activity
- includes a device or apparatus consisting of
fixed and moving parts
- include HP assets (claimed based on capital
portion paid in the YA
- provided it does not exceed the entitlement
of 15 consecutive YAs
Example 23 (PR 9/2017 – Manufacturing Activity)
Company U, manufacturer (YE 31st Dec) embarked on an expansion project in 2015 and acquired 2 forklifts for this purpose.
Forklift A – used to unload raw mat from lorry outside factory building to be weighed and inspected before being placed in storage
Forklift B – used in factory to move the materials throughout the production line.
Forklift A is not used in the factory, it is not qualifying machinery for the purpose of RA
Forklift B is used in the factory for the conveyance of materials and product to be sold and would be considered a qualifying machinery for
the purposes of RA.
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reliance in whole or any part of this contents.
Budget 2011 & 2012
Amendments be made to the non-application paragraph in Schedule 7A of the ITA 1967 in particular the word
“period” be replaced by “basis period”
With the amendments, RA incentive cannot be claimed in the same basis period when a company is also enjoying PS
(Budget 2011) or ITA (Budget 2012)
Effective : YA2011
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
01/01/2012 31/03/2012 31/12/2012
PS/ITA ceased
x
Incurred QCE for RA on
01/09/2012
– NOT eligible for RA
Basis period
YA2007 -
YA2008 PS/ITA
YA2009 PS/ITA
YA2010 PS/ITA
YA2011 PS/ITA
YA2012 PS/ITA or RA (only choose one – mutually exclusively)
*** If YE Changed to 30/06/2012, then
YA 2012 – continue claim PS/ITA
YA2013 – can claim the RA on asset acquisition during the YA
Example:
XYZ Sdn Bhd (YE 31/12/2012)
PS/ITA period : 01/04/2007 – 31/03/2012
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publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and r esponsibility to any person in
reliance in whole or any part of this contents.
Budget 2016
A company be entitled to make a claim for special RA for another 3 years of assessment to encourage reinvestments
by companies that have exhausted their eligibility to RA claim (ie. Completed the 15 cons. YAs).
Illustration:-
Effective : YA2016 – YA2018
Special RA incentive for:-
YA2016 YA2017 YA2018
15 Consecutive YAs of RA Ended in:-
YA2015 or prior years ✔ ✔ ✔
YA2016 N/A ✔ ✔
YA2017 N/A N/A ✔
SPECIAL RA
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