Concession Is Granted On The Issuance of Form CP58 For Calendar Year 2012

Announcement issued by Malaysia Tax Policy Department, Inland Revenue Board of Malaysia on the issuance of Form CP58 for Year 2012

This is to inform that a meeting has been held on 21 March 2013 between the Inland Revenue Board of Malaysia (IRBM) and the representatives of associations and corporate bodies regarding the use of Form CP58.

Having regard to the issues raised and appeals received, IRBM has agreed to extend the concession given earlier so that payer companies also need not issue Form CP58 for the calendar year of 2012. However, the yearly statements (January 2012 to December 2012) issued by payer companies to their agents, dealers or distributors must have information regarding monetary and non-monetary incentive payments.

Irrespective of whether a payer company issues Form CP58 or the yearly statement to its agents, dealers or distributors, the monetary and non-monetary incentive payment should be of amount exceeding RM5,000. 

LHDN issued new version of Form CP58

The IRB, which requires the particulars of payment made by a company, whether in monetary form or otherwise, to the agents, dealers or distributors in a prescribed form (Form CP58) for incentive payments exceeding RM5,000 [s 83A ITA 1967] (this is only applicable to companies), has recently issued a notification informing taxpayers that a new version of Form CP58 (Statement of Monetary and Non-Monetory Incentive Payment to An Agent, Dealer or Distributor Pursuant to Section 83A of the Income Tax Act 1967) in PDF and Excel format together with guidelines is now ready for download. They can be downloaded from: http://www.hasil.gov.my/goindex.php? kump=2&skum=3& posi=0&unit=12&sequ=12&cariw=cp58

If the old version of the form (Form CP58 [2011]) was used for the year ended 31 December 2012, the payer company need not use the new version (Form CP58 [Pin. 1/2013]).

For the year ended 31 December 2012, a payer company need only prepare and render form CP58 to its agents, dealers and distributors if the amount of monetary and non-monetary incentive exceeds RM5,000. If required to furnish a listing of CP58 information to IRBM, a payer company has to submit the information including incentive amounts of RM5,000 and below.

New version of Form CP58 in PDF format: http://www.hasil.gov.my/pdf/pdfborang/Borang_CP58_1.pdf

Guidance Notes on new version of Form CP58: http://www.hasil.gov.my/pdf/pdfam/Nota_Panduan_CP58_1.pdf

Submission of Form E Deadline: 31 March 2013 (LHDN Malaysia)

The LHDNM (Inland Revenue Board of Malaysia) reminded employers that the due date for submitting Form E (Remuneration for the year 2012) is 31 March 2013. 

Failure in submitting the form is an offence and action may be taken under Paragraph 120(1)(b), Income Tax Act 1967 and upon conviction, offenders may be liable to a fine of RM 200.00 to RM 2,000.00 or imprisonment (not more than 6 month) or both.

Stamp duty exemptions on purchase/transfer of “revived” residential property

Stamp Duty (Exemption) (No 5) Order 2013 [PU (A) 91/2013] exempts any qualifying loan instrument/agreement and any instrument of transfer relating to the purchase/transfer of a qualifying revived residential property in a qualifying abandoned project.

The exemption shall apply to instruments executed by an original purchaser on or after 1 January 2013 but not later than 31 December 2015.

IRB confident of achieving tax collection target

The Lembaga Hasil Dalam Negeri Malaysia (LHDN) is confident of achieving the tax collection target of RM130 billion set by the Malaysia government this year based on the current economic situation. Its chief executive officer, Tan Sri Dr Mohd Shukor Mahfar said.

He told reporters after attending the 17th Hasil Day celebration and the launch of Hasil 4U here today.  The Hasil 4U was officiated by the Finance Minister II, Datuk Seri Ahmad Husni Hanadzlah.  Also in attendance was Deputy Finance Minister Datuk Donald Lim Siang Chai.

“In order to achieve the target, LHDN would formulate new strategies, including to identify the industries with tax leakages.” The CEO of LHDN said tax leakages occurred for various reasons, including the lack of awareness among tax payers and misinterpretation of the relevant tax laws.

Malaysia: Limited Liability Partnership

LLP
(i)  is an alternative business vehicle to carry out business, which
(ii)  combines the characteristics of a private company and a conventional partnership
(iii)  provides limited liability status to its partners, and
(iv)  offers the flexibility of internal arrangement through an agreement between the partners.

The above combination gives entrepreneurs and businessmen a more structured business vehicle compared to a sole proprietorship or a conventional partnership.

LLP provides the flexibility of controlling the business operation in accordance with the partnership agreement whilst enjoying the limited liability status compared to a company which is subject to strict compliance requirements under the Companies Act 1965 in most of its affairs.

LLP is a business vehicle which would offer simple and flexible procedures in terms of
(a)  its formation,
(b)  maintenance and
(c)  termination
while simultaneously has the necessary dynamics and appeal to be able to compete domestically and internationally.

axe