– -INCOME TAX 103

Date:  23 January 2024

Fees: RM790.00 nett 

Venue: KAC Training Centre Bandar Puteri Puchong

Code: ATTAX103

Income tax 103: Understanding withholding tax and scope of charge   

INTRODUCTION

A fundamental tax training programme that aims to help participants to learn and understand basic-intermediate tax treatments of various income subjected to withholding taxes, the deductions of taxes from those incomes and the consequences of not remitting those taxes withheld to the Inland Revenue Board (IRB) Malaysia.

In addition, participants will also be exposed to the scope of charge and derivation of Malaysian Income, situations where that person may be liable to the provisions of the Income Tax Act 1967 (ITA 1967), as well as the resident status and tax reliefs such as bilateral and unilateral tax credits.

OBJECTIVE:

-To provide a general understanding on the tax treatments of various income subjected to withholding taxes in Malaysia and the consequences of not remitting those taxes to the IRB. This includes the withholding tax treatment on Royalty Income, Interest Income, Special Classes of Income and many more.

-To explain the scope of charge and derivation of a Malaysian Income, situations where a person can be deemed to be a Malaysian tax resident and the distinction of the tax treatments for a resident vs a non-resident person.

-To understand more about Double Tax Agreements (DTA) and the situation where a person may claim a bilateral or unilateral tax credit or tax reliefs when working in Malaysia.

HOW WILL YOU BENEFIT:

At the end of this seminar session, participants will learn to:

  • Identify the types of income and expenses that are subjected to withholding taxes and understand the tax implications of not withholding those taxes to the IRB;
  • Comprehend how an income is deemed derived from Malaysia and whether or not it is subjected to any withholding taxes in Malaysia;
  • Discover the situation where a foreign entity may be subjected to Malaysia’s ITA 1967 and the different tax implications applicable for it;
  • Learn the concept of Double Tax Agreements, bilateral vs unilateral tax credits, as well as relevant tax reliefs available for foreigners working in Malaysia.

METHODOLOGY:

Lecture, power point presentation, questions & answers session

WHO SHOULD ATTEND:

  • Entrepreneurs, Business Owners, Directors, General Managers
  • Financial Controllers, Finance Managers, Accountants & Accounts Executives
  • HR Managers, Marketing Managers, Operation Managers

Suitable for all type of businesses and industries

Course Outline

Module 1: Scope of Charge & Derivation of Malaysian Income

  • Introduction
    [A brief introduction to the scope of charge & Malaysian derived income]
  • Scope of Charge [Learn the circumstances where income will be subjected to tax in Malaysia]
  • Residence Status of Individuals
    [Learn the criteria that determines an individual’s liability to Malaysian Income Tax, as well as the distinctions of the tax treatments]
  • Residence Status of Companies & Bodies of Person [Understand the situation where a foreign entity may be a tax resident in Malaysia and subjected to Malaysian Income Tax]

Module 2: Withholding taxes (Part 1)

  • Contract Payments- S107A
    [Identify the differences between the withholding taxes paid for the employer’s vs employees’ portion, the tax treatments & how to remit those taxes accurately & timely to the IRB]
  • Interests- S109
    [Comprehend the types of interest income that are subjected to withholding taxes, the tax exemptions and how to withhold & remit those taxes accurately & timely to the IRB]
  • Royalties- S109 [Understand the types of income that are defined as royalty, the expanded scope of royalty and how to withhold & remit those taxes accurately & timely to the IRB]
  • Other Information  [Discuss other examples and scenarios pertaining to withholding taxes under S107A- S109]

Module 3: Withholding Taxes (Part 2)

  • Public Entertainer- S109A
    [Discover the type of people classified as public entertainers and how to withhold & remit the withholding taxes for them accurately & timely to the IRB]
  • Special Classes of Income- S109B
    [Identify the types of special classes of income classified under Para 4(i), 4(ii) & 4(iii) of th ITA and how to withhold & remit those taxes accurately & timely to the IRB]
  • Other Income- S109F [Grasp the types of income that are classified under S4(f), the criteria involved and how to withhold & remit those taxes accurately & timely to the IRB]
  • Other Information
    [Discuss other information and examples pertaining to withholding taxes under S109A- S109F]

Module 4 : Double Tax Agreement & Tax Relief

  • Introduction to DTA
  • [Discuss the important matters pertaining to Double Tax Agreements, Permanent Establishments, the rates and etc]
  • Bilateral & Unilateral Credit
    [Understand the situations where a company may obtain a bilateral or unilateral credit for double taxation purposes]
  • Tax Treatments of Foreign Nationals
    [Identify the treatments for foreign nationals working in Malaysia and the tax relief treaties available to them]
  • Other Information[Discuss other information and examples pertaining to Double Tax Agreements, the rates and etc]
  • Open discussions, Q&A

Trainer’s Profile:

Samuel Ngeow has over 7 years of experience in the field of taxation and finance. He is a tax and finance specialist with ACCA and CAT qualifications. He has worked with several small and established accounting firms, with the most notable being Baker Tilly Monteiro Heng. He spends most of his career in the SME space and is a specialist in the industry. Throughout his career in taxation, he has accumulated a vast experience in preparing and reviewing tax computations, in addition to handling tax audit and investigation matters. In addition, Samuel is also a certified HRDF trainer and had conducted various tax related training programmes within Klang Valley and the peninsular Malaysia.

Apart from taxation, Samuel also handles a small portfolio of investments for his private investors and had contributed some business-related articles to Malaysia Retailer, Smart Investor and PropertyGuru.