Services

With extensive business knowledge and hands-on industry experience, Reanda Malaysia can implement a broad array of solutions to help organizations capture growth, improve financial performance and manage risk.

We are a group of professionally qualified tax consultants to meet the increasing demand of tax efficiency services. We are here to help you and your businesses to maximize tax saving opportunities and minimize tax exposure. Our tax solutions will be tailor-made to your business needs and are most cost-effective.

We offer a wide spectrum of tax services for both the individual and corporate taxpayer:

Malaysian Taxation in Brief

In Malaysia, income is taxable on modified territorial basis. Generally, any income accruing in or derived from Malaysia is taxable locally notwithstanding the fact that the income may not have been received in Malaysia. However, a foreign source income received is exempted from income tax with the exception of resident companies carrying on business of sea/ air transport, banking or insurance which are assessable on a world income scope.

Revenue income receipts are chargeable to income tax whereas capital receipts are not.

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A resident individual is subject to income tax at scale rates of 0% to 28% with effect from year of assessment (YA) 2016 on his chargeable income. Resident individual is entitled to personal reliefs. An individual is regarded as tax resident based on his number of days stayed in Malaysia. Basically, he has to be in Malaysia for at least 182 days in a calendar year to be considered as resident for tax purposes.

The self-assessment system (SAS) for individuals (include salaried individuals and sole proprietors) and for partnerships was implemented with effect from YA 2014. Under the SAS taxes are collected from employees through monthly deductions from salary under the Scheduler Tax Deduction (STD) system. Individuals having business income are required to pay their income tax liability through bi-monthly instalments.

Individuals are required to file their completed income tax return forms to the Inland Revenue Board (IRB) together with the payment of the balance of tax payable, if any. The tax filing deadline is 30 April of the following year for individuals with no business income; and 30 June of the following year for individuals carrying on business.

A non-resident individual is liable to income tax at a flat rate of 28% with effect from YA2016. Non-resident individual is not eligible for personal reliefs. However, non-resident individual is exempt from tax on employment of 60 days or less.

For YA 2017 and YA 2018, a resident company is subject to corporate tax rate of 20% to 24%. Small and medium enterprise (SME), i.e. a resident company with paid up capital of RM2.5 million and below at the beginning of basic period is subject to corporate tax rate of 18% on first RM500,000 chargeable income and 20% to 24% on subsequent chargeable income. A company is tax resident in Malaysia if its management and control is exercised in Malaysia. Management and control is generally considered exercised in the place where board of directors meeting is held.

A non-resident company is subject to corporate tax rate of 24%, with effect from YA 2016.

The SAS for companies came into effect from YA2001. 
Under the SAS, every company is required to determine and submit in a prescribed Form CP204 an estimate of its tax payable for a YA, 30 days before the beginning of the basis period. When the estimate of tax payable has been submitted to the IRB, the company is required to remit this amount to the IRB in 12 equal monthly instalments. Each monthly instalment is due and payable to the IRB by the 15th day of the following month. Under SAS, all companies must file the tax returns within 7 months from the end of the accounting period.

Non-resident individuals and companies are subject to the following withholding tax:

Non-resident companies

Rate %

Royalties

10

Rental of moveable properties

10

Technical or management service fees

10

Interest

15

Contract Payment on:-
  - account of contractor
  - account of employee


10
3

Other income such as commission, guarantee fee,   agency fees and etc (w.e.f 1.1.2010)

10 

Where the recipient is a resident of a country which has a double tax treaty with Malaysia, the above withholding tax rates may be reduced.

Tax Investigation and Tax Audit (TITA) 

The local tax authorities take aggressive stance to combat tax evasion by conducting tax investigation on suspected taxpayers to detect fraud and/or willful evasion. Special penalties as high as treble the amount of the tax undercharged, a fine between one thousand ringgit and twenty thousand ringgit, or imprisonment of not more than 3 years or both could be also imposed.

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Taxpayers under tax investigation are usually panic, stressed and are not able to think clearly and act rationally. An undesirable strategy in managing the investigation cases may result in loss of thousands, if not, millions of ringgit. Furthermore, one may need to prepare mean test, capital statement and etc. which is technically challenging.

We offer you our Professional Tax Investigation Advisory Services and give you the most invaluable support & guidance as to the Dos & Don'ts during an investigation. Together, we can work out the best solutions.

Tax Audit

Tax audit is regularly carried out by the Inland Revenue Board (IRB) officers to enhance tax compliance. It is especially intensified under the self-assessment system. Tax audit may result in additional tax adjustments being made and penalties being imposed. Therefore, an appropriate approach must be adopted in handling tax audit cases.

If you were chosen for a tax audit, you need no worry because we provide three different types of services to suit your needs:-  

  • Tax Audit Preview Services
    We will conduct a pseudo field audit by previewing your selected business records and extracting relevant supporting documents before the actual field visit by the IRB audit officers.
  • Tax Audit Review Services
    We will be by your side to help you attend to the IRB officers' needs and queries whilst they are visiting you.
  • Tax Audit Post-View Services
    We will assist you to narrow the scope of the IRB officers’ queries and negotiate for better terms where applicable.

Tax Incentives

Our Government has been generous in giving a great number of tax incentives to the taxpayers. We offer professional advice and assistance in the application of tax incentives for the following industries:

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  • Manufacturing sector
  • Agricultural sector
  • Tourism sector
  • Research and development ( R&D ) sector
  • Education and Healthcare sector
  • Communications, utilities and transportation sector
  • Green technology sector
  • High technology and multimedia sector
  • Service sector
  • Waste recycling sector
  • Real estate investment sector
  • Biotechnology sector
  • Other sector

Main incentives available are:

  • Pioneer Status (PS)
  • Investment Tax Allowance (ITA)
  • Reinvestment Allowance (RA)
  • Export Incentives
  • Import Duty Exemption
  • Accelerated Capital Allowance
  • Double Deduction
  • Exemption of Stamp Duty
  • Group Relief

In addition, we offer services in the application of:

  • Manufacturing License
  • Expatriate Posts

Tax Advisory

The list of advices we can render to our clients and potential clients is inexhaustible. It ranges from individual tax planning, payments to non-residents which are subject to withholding tax, capital gains versus business receipts, real property gains tax exemption, corporate tax planning, cross border transactions, merger & acquisition and lots more!

Tax Compliance

We can assist you from the very beginning by registering a tax file number. The annual tax compliance services include preparation of tax computation and supporting schedules, submission of tax return Forms B, BE, C, P & etc, where applicable. Since the introduction of self-assessment system, the onus of tax compliance lies even more in the hands of taxpayers. Taxpayers are also required to furnish estimated tax payable, remit monthly tax installments and etc. Our tax compliance team is there to serve and assist you in your routine tax compliance matter.