Friday 25 February 2011

Income Tax (Exemption) Order 2011 [P.U.(A) 44/2011]

Effective from the year of assessment 2010 to the year of assessment 2014, a resident company incorporated in Malaysia is given an exemption from payment of income tax up to 70% of the statutory income derived from the export of motor vehicles, automobile components or parts it manufactured.

The amount of statutory income to be exempted is equal to:

a) 30% of the value of increased export where the export sales of products of the company attained at least 30% of the value added: or

b) 50% of the value of increased export where the export sales of products of the company attained at least 50% of the value added.

The incentive is not applicable to a company if, in the basis period for a year of assessment, the company has been granted any incentive under Promotion of Investments Act 1986, or has made a claim for reinvestment allowance or granted investment allowance under Schedule 7A and 7B of the Income Tax Act 1967 (the Act) respectively, or has been granted exemption under Section 127(3)(b) or 127(3A) of the Act, or has qualified for a deduction under any rules made under Section 154 of the Act including any rules that provide for a higher rate of capital allowances.

Wednesday 23 February 2011

CIRCULAR MF9/2011: PROPOSED INTERNATIONAL STANDARD ON REVIEW ENGAGEMENTS 2400

CIRCULAR MF9/2011: PROPOSED INTERNATIONAL STANDARD ON REVIEW ENGAGEMENTS 2400, ENGAGEMENTS TO REVIEW HISTORICAL FINANCIAL STATEMENTS

23 Feb 2011 Circular MF9/2011

ALL MEMBER FIRMS

PROPOSED INTERNATIONAL STANDARD ON REVIEW ENGAGEMENTS 2400, ENGAGEMENTS TO REVIEW HISTORICAL FINANCIAL STATEMENTS

The Institute is pleased to inform members that the Council has approved the release of the exposure draft on International Standard on Review Engagements (“ISRE”) 2400 (Revised), Engagements to Review Historical Financial Statements for distribution to members, regulatory bodies and other interested parties for comment.

The exposure draft is drawn primarily from the pronouncement issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants.

A review of financial statements in accordance with the proposed ISRE consists primarily of making inquiries of management and others within the entity involved in financial and accounting matters, applying analytical procedures, and evaluating the sufficiency and appropriateness of evidence obtained. The practitioner reports on whether anything has come to the practitioner’s attention that causes him/her to believe that the financial statements, taken as a whole, are not prepared in all material respects in accordance with the applicable financial reporting framework. The procedures performed in a review are substantially less than those performed in an audit, and the practitioner does not express an audit opinion.

The proposed ISRE will help practitioners around the world who perform review engagements converge towards use of a globally accepted benchmark, and facilitate development of practice in jurisdictions that currently do not have national standards in this area.
Deadline for comment
ED ISRE 2400/2011 ISRE 2400 (Revised), Engagements to Review Historical Financial Statements

Click HERE download ED ISRE 2400/2011.
24 March 2011

Comments may refer to any specific principles, paragraphs or group of paragraphs and suggestion for alternative solution or wording with supporting reasons. These comments will be collated and, where appropriate, incorporated into the proposed standard before being issued in the form of an Approved Standard on Review Engagements.

Comments should be submitted in writing and are to be received by the deadline.

Members can download the said exposure draft from the Institute's website at http://www.mia.org.my under the Professional Standards and Practices - Auditing and Assurance - Circulars link.

Please be guided accordingly.


Tuesday 22 February 2011

New Public Rulings issued on 7 February 2011

Public Ruling 01/2011 --- Taxation of Malaysian Employees Seconded Overseas

Public Ruling 02/2011 --- Interest Expense and Interest Restriction

The Inland Revenue Board (IRB) has issued the above Public Rulings (PRs) on 7 February 2011. Members are advised to study the full PR thoroughly and submit their comments to the Institute by 7 March 2011 for further action. The PRs may be viewed at the IRB’s website at http://www.hasil.gov.my/goindex.php?kump=5&skum=5&posi=3&unit=1&sequ=1. Members may also view the PRs at http://www.ctim.org.my/cms/news.asp?menuid=14.

The Technical Section in the New CTIM Website

Only public documents such as IRB public rulings, guidelines, Section 153 guidelines, CTIM rules and regulations and the latest developments, national budget speeches and appendices as well as the budget memorandums are available for public viewing at the “Technical Section” in the new CTIM website.

Additional information such as the list of legislation updates, members’ e-circulars, professional practice developments, minutes of dialogues, archived updates and guidelines as well as reference resources are available in the “Members Only” section where only CTIM members can have access.

The Institute has assembled some useful hyperlinks in the “Link Section” for the convenience of members. More useful hyperlinks to international organisations, tax professional bodies and overseas revenue authorities can also be found at the “Resources” webpage in the “Members Only” section.

Introducing New Business Code (MSIC 2008)

With effect from 15 February 2011, taxpayers who carry on a business are required to use the new business code (MSIC 2008) when completing their income tax return forms (ITRFs). The MSIC 2008 is applicable to all ITRFs (including ITRFs for backlog cases and amendments of / revisions to ITRFs for prior years of assessment) as well as e-filing.

The IRB has indicated that for investment holding company, the new business code is 64200. No mapping list is available.

Members may view the MSIC 2008 at the IRB’s website at http://www.hasil.gov.my/pdf/pdfam/NewBusinessCodes_MSIC2008_2.pdf or at CTIM’s website at http://www.ctim.org.my/cms/file/news/14/00645_NewBusinessCodes_MSIC2008_2.pdf

CCS Group's Official Website

We are thrilled to announce that CCS Group has launched a new website at www.ccs-co.com Some of the great new features of this newly designe...