Monday, 6 January 2020

Taxation On Digital Services

This article is written by Lee Hishamuddin and Gledhill (LHAG) and was first published in their SST e-Alert in October 2019. Reproduced with permission from LHAG.

Effective from January 2020, there will be a 6% of service tax imposed on digital services in Malaysia  for both local and foreign service providers in order to comply with Malaysia's new Sales and Service tax. The Royal Malaysian Customs Department (Customs) recently issued a Guide on Digital Service Tax (Guide) to assist FSPs. This alert highlights some of the key points that FSPs should consider in assessing their liability prior to the implementation.The service tax is also applicable to online platforms that carry out transactions on behalf of overseas service providers but do issue invoice or any other document under their name.

Tuesday, 17 December 2019

Budget 2020

Since we will be entering 2020 soon, lets take a recap of some of the exciting Tax highlights of our Budget 2020. It was presented by our Finance Minister YB Lim Guan Eng on 11 October 2019.

Budget 2020 Higlights:-

* Corporate income tax rate for SME's will now be taxable at 17% for the first 600,000 of the company's chargeable income. 

* Also if SMEs are focusing on adopting digitization or if they are undertaking pilot projects on digital applications, then they might be entitled to grants and loans in 2020. 

* To encourage companies to participate in export fairs, the government will provide a tax relief up to RM 25,000 compared to RM 10,000 previously. Please note, this relief is upon approval and submission of certain documents required by Inland Revenue Board Of Malaysia (IRB). 

* Companies are allowed to claim or deduct 10% of approved donations made for the year. Cash Wakaf is now entitled to be deducted as well. 

* The Government has increased the relief for childhood care (Taska) to RM 2,000. It was RM 1,000 previously. 

* Individuals are now eligible to a tax relief of up to RM 6,000 for medical expenses which includes fertility for YA 2020. 

* Individuals with taxable income of RM 2 million and more will now be taxed at 30% instead of 28%. 

Thursday, 5 December 2019

‘Tis the season to let your hair down… not your dignity

Author: Aaron Goonrey (Partner) and Luke Scandrett (Senior Associate) (Lander & Rogers)

This article was originally published in HRM Australia.

Most of us know that punching our boss in the face or commenting on a colleague’s body is off limits, but you’d be shocked about what rules get ignored at Christmas parties.
A well-planned Christmas party can do a lot for a workplace. Staff get an opportunity to celebrate and reflect on the year gone by, and socialising outside of the office environment can lead to enhanced professional relationships between colleagues and boost morale for the year ahead.
But despite these potential benefits, the HR departments of many organisations find themselves overrun in January with claims arising from that often-fateful evening — whether they involve workplace injuries, physical assaults, sexual harassment, inappropriate drunken behaviour or some combination.

Monday, 2 December 2019

More Sales Tax Hikes Needed from Japan, IMF Says

The International Monetary Fund has proposed further changes to Japan's tax regime following the increase to its sales tax rate.

Japan's headline consumption tax rate was increased from eight percent to 10 percent on October 1, 2019. A reduced eight percent applies to the supply of foods and drinks – with the exception of liquors and restaurant services – and to subscription newspapers issued twice or more a week.

The consumption tax rate was last increased in 2014, when it rose from five percent to eight percent.

The IMF said that, relative to 2014, consumption has been less affected by October's rate hike, owing partly to countermeasures introduced by the Government. These measures include a tax allowance for automobile and house purchases, a point-reward program for cashless payments in SMEs, infrastructure investment, and additional spending for childcare and tertiary education.

Wednesday, 27 November 2019

Asia Pacific Employment Law Q&A

Asia Pacific Employment Law Q&A
The Asia Pacific Employment Law Q&A has been revamped!
What’s this revamp about?
The module makes it easier to search and find questions depending on the area requiring information. The Q&A covering frequently asked questions, interpretations of law, gray areas of law and best practice solutions across the 14 countries have now been restructured and reorganised into specific topics.
All the questions were inserted in 1 commblock and there were no separate chapters. Thus, the commblock was very long and made it harder to look for the relevant questions.

For example:

For faster and easier referencing, questions covering the frequently asked questions, interpretation of law, gray areas of law and best practice solutions across the 14 countries have now been inserted into specific topics such as Data Protection, Discrimination, Employment Benefits, Employment Contract, Retirement, Termination, etc.  in a more structured manner. The topics will be enhanced progressively for all countries.
For example:

Key Benefits:
The new structure is much cleaner and improves searchability, making it easier for you to find the answers you need, cutting down on endless scrolling.
Check it out now!

Friday, 8 November 2019

Tax Deductibility of Valuation Fee

This article is written by Lee Hishamuddin and Gledhill (LHAG) and was first published in their Tax e-Alert in October 2019. Reproduced with permission from LHAG.

In the case of  CP Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri, the high court  allowed a taxpayer to deduct the valuation fee incurred by them to value their properties, including their investment property in the form of a shopping mall. The taxpayer was successfully represented by our Tax, SST & Customs partner, S Saravana Kumar. 

Tuesday, 22 October 2019

Can AI eliminate workplace harassment and bullying?

By: Nurhuda Syed. This story originally appeared here:

Employers in Australia will soon be able to tap on the AI technology to prevent harmful workplace practices like micro-aggression, sexual harassment, bullying and discrimination.
The new technology will help HR and managers identify and understand teams that are most “at risk” of non-inclusive and offensive behaviours before they escalate.
It’ll also guide leaders on how to proactively tackle the issue.
Early detection is crucial but can be the “most difficult” part of eradicating biases and harassment at work, according to Shiran Yaroslavesky, the founder at Cassiopeia, the firm behind the technology.
“Detecting the teams that need your help the most can be difficult”, Yaroslavesky said. “Around 85% of offensive behaviours go unreported, costing the average mid-sized company more than $2.25m every year.”
The cost can include employee attrition and expensive lawsuits as seen by headlines recently. This year alone HRD covered the likes of:
Early detection can help leaders put in place more effective solutions like training, advisors and feedback processes to manage those risks, Yaroslavesky said, thereby reducing the cost of attrition.
The technology is a collaboration between Cassiopeia and BDO Reward Australia. Allan Feinberg, managing director at BDO Reward Australia, added how identifying behaviours early can help leaders solve the pesky problem.
“By building a mentally healthy workplace that is positive and productive, archaic barometers like whistleblowing policies become redundant, because you have already got the technology platform in place to protect your workforce culture before the unwanted behaviours have occurred,” Feinberg said.

Taxation On Digital Services

This article is written by Lee Hishamuddin and Gledhill (LHAG) and was first published in their SST e-Alert in October 2019. Reproduced wi...