Category: Ideas & Insights

FAQ on Wage Subsidy Programme

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Post date April 3, 2020
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FAQ on Wage Subsidy Programme

Key Takeaway

Documents required to apply for the Wage Subsidy Programme
Table of the enhanced Wage Subsidy Programme
Who is not eligible to apply

This Alert presents the Frequently Asked Questions (FAQ) about the enhanced Wage Subsidy Programme (WSP) which was announced on 6 April 2020 and replaces the previous programme announced on 27 March 2020.

Documents required to apply for the WSP

Employee name list (according to enterprise size qualification and restrictions)
Employer bank account information (the first page of bank statement)
Details of the employer’s panel bank registration (pengenalan pendaftaran bank panel majikan)
Copy of the employers’ Companies Commission of Malaysia (SSM)/ROS/ROB registration or business licence
Other supporting documents such as financial statements or sales reports which have been certified by the management (required for employers having 76 employees and above)

Table of the enhanced WSP (6 April 2020)

Businesses in the tourism industry such as travel agencies, hoteliers and airlines will be given a deferment of their monthly tax instalment payments for six (6) months from 1 April 2020 to 30 September 2020.

This will affect instalment payments from 1 April 2020 to 30 September 2020 and the Inland Revenue Board (IRB) clarified in their media release dated 9 March 2020, that an application for the deferment has to be made via a manual form to the Tax Operations Department of the IRB.

a) Company size

Companies with up to 75 employees

Companies with 76-200 employees

Companies with more than 200 employees

b) Financial assistance

RM1,200 subsidy per month for each eligible employee

RM800 subsidy per month for each eligible employee

RM600 subsidy per month for each eligible employee

c) Limitations on the number of employees

75 employees

200 employees

d) Period of assistance

3 months

e) Qualifying conditions

Rate of decrease in revenue or sales

No conditions specified

Reduction of 50% or more of total sales or revenue compared to January 2020 or the following months

Employer registration

1. Employers and employees must be registered or contributing to SOCSO
2. The employer is registered with the Companies Commission of Malaysia
3. (SSM) or Local Authorities before January 1 2020
4. Employers must have started operations before January 1 2020

Employee’s salary

Employees earning a monthly salary of RM4,000 and below

Other conditions

For employers who choose to receive this assistance, they are required to retain their employees for a period of at least 6 months, i.e. during the 3 months when the subsidy is in effect followed by the next 3 months.

f) Effective Date

1 April 2020

g) How to Apply

Employers must apply online through SOCSO’s official website prihatin.perkeso.gov.my

starting from April 9 2020.

h) Application Deadline

September 15 2020 or subject to the availability of funds or any decision by the Government.

i) Payment Method

The wage subsidy payment will be credited to the employer’s account within 7-14 days from the date of approval.

Who is NOT eligible to apply for the WSP?

Employer or company which registered and started operations on or after January 1, 2020;
Employers and employees who have not registered or contributed to Social Security Organisation(SOCSO);
Employees who are receiving the Employment Retention Program (ERP) financial aid during the
same month;
Employees with salaries of more than RM4,000 per month;
Employees who have been terminated;
Employees of the public sector, federal and state statutory bodies, Local Authorities and self- employed (without employers) including freelancers; and
Foreign workers and expatriates.

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Ideas & Insights Newsletter Tax

Economic Stimulus Package 3.0 Special Deduction On Rental Reduction Offered To Small And Medium Enterprises Tenants

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Post date April 1, 2020
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Economic Stimulus Package 3.0 Special Deduction On Rental Reduction Offered To Small And Medium Enterprises Tenants

Key Takeaway

Eligibility criteria for the special deduction.
Mechanism of the special deduction.

In the supplementary stimulus package announced on 6 April 2020 which was targeted to support small and medium enterprises (SMEs), the Prime Minister urged owners of private business premises to provide rental reduction or waiver to tenants that consist of SMEs.

Landlords of business premises that offer reduction or relief of rental payment to SMEs tenants of at least 30% of the existing rental rate from April 2020 to June 2020, are allowed to claim a special deduction equivalent to the rental reduction.

The Inland Revenue Board of Malaysia (IRBM) has issued a ‘Frequently Asked Questions’ (FAQ) on this matter on 25 April 2020 and the following is a summary of the mechanism of the special deduction.

1. Eligibility

Any taxpayers (corporate, individual, cooperative or other business and non-business entities) renting out their business premises to any qualified SMEs tenants.

2. Conditions of eligibility

The rented premises must be used by the tenant for purpose of carrying out his business.
The landlord must be a taxpayer with rental income under subsection 4(a) and subsection 4(d) Income Tax Act (ITA) 1967
The rental reduction should be at least 30% of the existing rental rate of the determined period, ie. from April 2020 to June 2020

2. Conditions of eligibility

a) General

Category

Micro

Small

Medium

Manufacturing

Sales turnover of less than RM300,000 OR employees of less than 5

Sales turnover from RM300,000 to less than RM15 million OR employees from 5 toless than 75

Sales turnover from RM15 mil to not exceeding RM50 million OR employees from 75 to not exceeding 200

Services and Other Sectors

Sales turnover of less than RM300,000 OR employees of less than 5

Sales turnover from RM300,000 to less than RM3 million OR employees from 5 to less than 30

Sales turnover from RM3 million to not exceeding RM20 million OR employees from 30 to not exceeding 75

A business just has to fulfil either one criterion across the different sizes of operation to qualify as a SME. For example, a company which have sales turnover of RM100 million is not considered as SME. However, if the same company have only 150 full-time employees, the company would still be considered as SME.

b) Exclusion

Companies which are excluded from National SME definition, hence not eligible for the special deduction, are:

i. Entities that are public-listed on the main board; and

ii. Subsidiaries of:

Publicly-listed companies on the main board;
Multinational corporations (MNCs);
Government-linked companies (GLCs);
Syarikat Menteri Kewangan Diperbadankan (MKDs); and
State-owned enterprises.

c) Related companies

A company (landlord) will still qualify for the special deduction even if the premises is rented toa related company (tenant), so long as the tenant fulfils the definition of SME as above.

d) Cut-off date used in determining the SME criteria of the tenant

SME Criteria

Period

Annual sales turnover

Annual sales turnover at the end of basis period of preceding year of assessment.

Note: If SME’s basis period ended on 31 December 2019, sales turnover for that period must be used.

Number of full-time employees

Number of full-time employees at the end of basis period of a year of assessment, before or on 1 April 2020.

4. Meaning of ‘business premises’

All premises used for carrying out a business, eg, office, workshop, warehouse, childcare and rented lot/bazaar/booth/stall.
Rental of a residential house used for both residential and business activities, is excluded.
Special deduction is not applicable to rental of other than ‘premises’ such as machines, motor vehicles, parking spaces, telecommunication towers, etc.

5. Quantum of special deduction

Subject to fulfilling the conditions of eligibility and the definition of SME, a special deduction of equivalent to the amount of monthly rental reduction offered by the landlord to the eligible SME tenants.
Even if the landlord reduces the rental amount at a different rate every month, the company is still eligible for the special deduction provided that reduction amount should not be less than 30% for each eligible month.
If in any of these eligible months, the rental reduction is less than 30%, then the company is not eligible to claim the special deduction for that particular month/months.

6. Calculation of special deduction

Example:

A Sdn. Bhd rents a shop lot to B which is an eligible SME for RM5,000 a month (RM60,000 yearly). A Sdn. Bhd. has agreed to offer rental reduction to B for the month April, May and June 2020 of RM2,500 a month.

Without special deduction (RM)

Monthly rental income

–

5,000

Annual rental income

–

60,000

Rental reduction of 50% for April, May and June 2020

RM5,000 x 50% x 3 months

(7,500)

Annual gross rental income

–

52,500

Special deduction ¹

RM2,500 x 3 months

–

(7,500)

Taxable income

–

52,500

45,000

Tax payable at 24% ²

–

12,600

10,800

¹ Assuming no other allowable expenses

² Current corporate tax rate

Total tax savings to be enjoyed by the landlord is as follows:

Tax savings = RM12,600 – RM10,800 = RM1,800.

For other taxpayers such as individuals, the tax savings is according to the taxpayer’s income tax bracket.

7. Rental already received in full for the months of April 2020 to June 2020

The landlord who has received the rental payment for April, May and June 2020 in advance can still claim the special deduction, provided that the landlord offers a rental reduction according to the conditions above.

8. Supporting documents required

The supporting documents required to be kept by the taxpayers (landlords) who claim this special deduction are:

i. Valid tenancy agreement;
ii. Rental income statement;
iii. Details of the tenant as SME such as number of business registration, tax file number etc.; and
iv. Details of the rental reduction.

*Items (iii) & (iv) will have to be provided in Working Sheet (HK) of Company Return Form. For the full FAQ, please visit: http://lampiran1.hasil.gov.my/pdf/pdfam/FAQ_PRE3.0_RENTAL_REDUCTION_1.pdf

Our Comments

The rental reduction initiated by the taxpayer coupled with the special deduction, would probably result in a lower tax incidence in some taxpayers’ case, while others instead may see an actual or tax rental loss.

This special deduction is favourable to taxpayers whose rental income qualifies as a business source under subsection 4(a) ITA 1967, as the taxpayer’s current year business loss (if any) can be utilised to set off against income from all sources in the current year. Any unutilised losses can be carried forward for a consecutive period of 7 years of assessment (YA) to be utilised against income from any other business source.

However, taxpayers whose rental income is assessed under subsection 4(d) ITA 1967 will see lesser or no benefits, as rental loss can only be set off against the rental income of other properties and cannot be deducted against the aggregate income from other sources. Neither can the rental loss be carried forward to subsequent YAs.

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Advisory Featured Ideas & Insights Publications

International Pre IPO and IPO (Initial Public Offering) Advisory

Post author By admin
Post date February 18, 2020
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INTERNATIONAL PRE IPO AND IPO (INITIAL PUBLIC OFFERING) ADVISORY

Think of going public aboard if it would have resulted in a better share liquidity and a higher company valuation?

Why You Should Go Public Listed Abroad?

Better valuation and liquidity
Gateway to Mainland China
Leveraging Mainland China’s growth
Well-established legal system
Various acceptable accounting standards
Sound regulatory framework
Free flow of capital and information
Advanced clearing and trading infrastructure

Pros and Cons of going On PUBLIC Listing

Pros

Opportunity for capital growth and new financing
Enlargement of shareholder base
Increase of shares marketability
Realisation of capital gains
Diversification of personal portfolios
Enhancement of corporate profile
Increase of corporate transparency
Improvement of employee incentive and commitment
Increase of directors’ fiduciary responsibility

Cons

Decrease in controlling power over the company and the need to share success with public shareholders
Loss of privacy of company and management
Time cost and initial IPO expenses during listing
Continuing obligations after listing
The need to meet shareholders’ expectation (including public minority shareholders)
Increase of directors’ fiduciary responsibility

Preparatory Work for ipo (initial Public Offering) Listing

Before Listing	During Listing
Determine the proposed listing business or scope of the entity.	Form an internal team responsible for listing.
Plan for restructuring of the listing group.	Appoint external professional parties.
Introduce strategic investors.	Prepare and submit listing documents.
Decide to go listed or seek other forms of fund raising.	Respond to questions raised by SEHK regarding the listing documents.
Estimate the amount of funds raised through listing.	Attend listing hearings and get the approval for listing from the Listing Committee.
Determine the proposed listing business or scope of the entity.	Form an internal team responsible for listing.
Plan for restructuring of the listing group.	Appoint external professional parties.
–	Arrange press conference and roadshow.
–	Issue prospectus.

IPO Listing Process

Parties Involved in Listing

Sponsors
Company’s legal advisors as to Hong Kong law
Company’s legal advisors as to law of place of registered office
Legal advisors as to law of place of registered office
Legal advisors of sponsors and brokers as to Hong Kong law
Legal advisors of sponsors and brokers as to law of place of registered office
Reporting Accountants
Tax advisors
Valuers
Internal control consultants
Third-party industry experts
Printers (including Chinese and English translation)
Public relations firms
Share registrars
Receiving banks

Major Component of IPO Listing Expenses

Lawyers’ fees (including sponsors’ legal advisors, company’s legal advisors as to Hong Kong law and law of place of registered office)
Underwriting commission
Sponsors’ fees
Reporting Accountants’ fees
Internal control consultant fees
Public relations and roadshow fees
Printing fees
Valuer’s fees
Application fees to HKEX
Others

Key Areas that Management Have to Consider before going public

What due diligence procedures are needed?
How long does the listing process take?
What are the impacts of a private company turning into a listed company?
The commitments and responsibilities of the senior management?
Does management have sufficient knowledge and experience to manage a listed company (e.g. comply with the requirements of corporate governance and internal controls)?
Is it necessary to increase internal resources to cope with the listing process?
What is the optimal capital structure?

Common Problems During IPO Listing

Corporate Structure or Business Issues

Determination of the assets, businesses or entities to be included in the listing group
Restructuring of the human resources, management, finance and information technology systems
Handling of competing businesses
Handling of related party transactions
Assets valuation
Handling of the minority shareholders’ interests

Taxation Issues

Review of tax compliance
Feasibility of tax planning
Handling of the tax of employees’ warrants
Contact with tax authorities to confirm corporate tax status and resolve tax disputes
Review of the adequacy of the group’s tax reserves, e.g. land appreciation tax, corporate income tax in the business domicile, value added tax, deferred income tax, profits tax in Hong Kong, etc.

Accounting Issues

Revenue recognition
Cut-off problem of sales and purchases
Consolidation of financial statements of listing entities
Retirement benefits of employees
Depreciation and impairment of fixed assets
Capitalisation of interests
Valuation and amortisation of intangible assets
Bad debts of accounts receivables and other receivables
Existence and completeness of inventory records
Accounting for financial instruments
External guarantee
Accounting for leasing contracts
Accounting for government grants and subsidies
Qualified opinions in track record period statutory audit reports
Unrecorded liabilities
Accounting for listing expenses

Legal Issues

Restructuring of the listing group
Treatment and disclosure of legal issues and non-compliance issues for the listing group in track record Period
Legal titles of assets
Litigation and related compensations

Continuing Obligations after Listing

Upon listed, the listed company must strictly comply with the Securities and futures Ordinance and the Listing Rules to provide the public with accurate information on timely basis. The major requirements include:

Disclosure of Inside Information
Financial Disclosure
Notices, Announcements and Circulars
Notifiable Transactions
Assets valuation
Connected Transactions
Corporate Governance Report
Environmental, Social and Governance Report

Corporate Teams after IPO Listing

Compliance Advisor
Company Secretary
Qualified Accountant
Authorised Representatives
Remuneration Committee
Audit Committee
Authorised Representatives

Our IPO Professional Services

Pre-ipo listing

Assess whether the company meets the listing requirements and discuss the potential listing problems
Discuss the financial and accounting matters regarding the company’s restructuring
Discuss the financial and accounting matters regarding the company’s fund raising strategies and channels
Discuss the regulatory requirements and the listing process of IPO
Discuss the company’s basic accounting policies, preparation of financial statements, consolidation process, etc.
Discuss the company’s financial budget mechanism and guide based on its business development strategy
Disclosure of related parties transactions
Discuss pre-IPO capital restructuring or dividend distribution to realize the optimal composition of assets and liabilities
Provide internal control review services, review and assist in establishing internal control procedures on financial reporting processes
Provide corporate training and recommendations on improving internal control environment and procedures
Provide recommendations on compliance processes
Provide tax services and recommendations, including tax audits, tax restructuring, tax planning, etc.

DURING ipo listing

Prepare Accountants’ Report of the track record period, in accordance with IFRS or HKFRS and the Listing Rules of HKEX
Provide general assistance to the company’s sponsors, legal advisors and underwriters in the role of reporting accountants regarding the preparation of prospectus (including attending the meetings for drafting and planning, helping to review, submitting the required information and handling other matters as instructed)
Review the unaudited pro forma financial information
Review the statement of indebtedness prepared by the company
Review the profit and cashflow forecast prepared by the company
Assist the sponsors in solving queries from the regulatory authorities
Review the accounting policies and calculation methods adopted by the company in profit forecast
Comment on internal control review and corporate governance

post ipo listing

Act as an auditor and provide audit services
Review the company’s transactions in capital market such as rights issues and major acquisitions and act as reporting accountants for mergers and acquisitions or other projects
Review on the disclosure of the company’s financial results regularly
Advice on the latest updates on Listing Rules, accounting standards, financial reporting, corporate governance and other regulatory matters
Review the company’s internal controls and corporate governance regularly, and provide recommendations for improvement
Assist in the preparation of environmental, social and governance report

CRITERIA AND REQUIREMENTS OF IPO LISTING

Note: For the Listing Criteria and Requirements on Hong Kong Stock Exchange, Singapore Stock Exchange, NYSE, NASDAQ, OTC, Australia Stock Exchange, London Stock Exchange, Borse Frankfurt Stock Exchange and Taiwan Stock Exchange, please refer to PDF.

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Featured Ideas & Insights Publications Tax

Malaysia Halal Park Opportunities

Post author By admin
Post date December 31, 2019
No Comments on Malaysia Halal Park Opportunities

Malaysia Halal Park Opportunities

Income tax exemption for 10 years or 100% income tax exemption on capital expenditure for 5 years for all companies operating in Malaysia Halal Park.

In a bid to make Malaysia a strong competitor in the Global Halal Market, all companies that operate within the scope of the market will be given a complete exemption from income tax for a duration of 10 years or 100% income tax exemption on capital expenditure for a duration of 5 years plus an exemption on import duty on plant & equipment and raw materials and double deduction on specific expenses.

HALMAS

HALMAS, it is a symbol of excellence reserved for parks that perform remarkably in terms of the standard of Halal products that they produce, their level of integrity as well as safety.

Several perks, in the form of incentives are tied to this mark of notable performance. Operators, industry players and logistics service providers will enjoy these benefits, to serve as a motivating factor for new and existing players in the Halal industry.

HALAL INCENTIVES

1. Halal Park Operators

In a bid to enhance the quality of Halal parks and make them more fascinating, certain incentives are recommended, they include:

Total exemption from income tax for a duration of 10 years, or 100% income tax exemption on capital expenditure for a duration of 5 years.
Exclusion from payments that pertain to import duties on equipment, components, and machinery that are utilized in the Cold Room Operations in compliance with existing policies.

2. Halal Industry Players (Manufacturers)

In a bid to reinforce the competitive prowess of Malaysia in the Global Halal Market, specifically in aspects of inward and outward investment into the country, it is suggested that certain incentives be provided for companies that operate within the Halal Park.

Total exemption from income tax for a duration of 10 years, or 100% income tax exemption on capital expenditure for a duration of 5 years.
Exclusion from payments that pertain to import duties on raw materials that are utilized for the development and production of halal promoted products.
Double deduction on expenses that results from obtaining international quality standards including HACCP, GMP, Codex Alimentarius (food standard guidelines of FAO & WHO), Sanitation Standard Operating Procedure and regulations for compliance for export markets such as Food Traceability from farm to fork.

3. Halal Logistic Service Providers

In a bid to improve Halal Industry and Halal supply chain in Malaysia, recommended incentives that also covers logistic operators include:

Total exemption from income tax for a duration of 5 years, or 100% income tax exemption on capital expenditure for a duration of 5 years.
Exclusion from payments that pertain to import duties on equipment, components, and machinery that are utilized in the Cold Room Operations in compliance with existing policies.

HALMAS ELIGIBILITY CRITERIA

The following qualifications are required from applicants, they must be;

Have an active part in the Halal industry
- Food & Beverages
- Cosmetics & Personal Care
- Halal Ingredients
- Pharmaceutical
- Modest Fashion
- Medical Tourism
- Medical Devices & Appliances
- Muslim Friendly Hospitality
- Logistics Services
- Islamic Finances
- Vaccine
High value knowledge workers with at least 15% of the entire workforce, with a minimum of 2 Halal Compliance Officers inclusive.
Currently taking part in recent business activities pertaining to Halal, which must comprise of a new legal entity in Malaysia.
Property within the bounds of the specified area.

LIST OF 14 HALMAS – ACCREDITED HALAL PARKS

List of halal parks with HALMAS status:-

PERDA Halal Park PERDA
Penang International Halal Park
Selangor Halal Hub
PKFZ National Halal Park PFKZ
Techpark @ Enstek
Pedas Halal Park
Melaka Halal Park
Pasir Mas Halal Park
Gambang Halal Park
Sedenak Industrial Park
ECER Pasir Mas Halal Park
ECER Gambang Halal Park
POIC Tanjung Langsat
Iskandar Business Park

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Investing In The Northern Corridor Economic Region (NCER), Malaysia

Post author By admin
Post date November 15, 2019
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Investing In The Northern Corridor Economic Region (NCER), MALAYSIA

The Northern Corridor Economic Region (NCER) is a development plan encompassing the four Northern States of Malaysia namely Perlis, Kedah, Perak and Penang. The priority sectors in NCER are manufacturing, agriculture and bio-industries and services which include the sub-sectors of tourism, global business services and logistics & connectivity.

MAJOR DEVELOPMENT IN NCER

The Northern Corridor Economic Region (NCER) is a development plan encompassing the four Northern States of Malaysia namely Perlis, Kedah, Perak and Penang. The priority sectors in NCER are manufacturing, agriculture and bio-industries and services which include the sub-sectors of tourism, global business services and logistics & connectivity.

The objectives of the NCER initiative include:

a) To stimulate economic growth to address the imbalances and increase inclusively;

b) To achieve balance growth in the manufacturing, agriculture, bio-industries and services sectors;

c) To enhance talents to meet the growing needs of the region;

d) Increase private sector investments and finance initiatives.

The advantages include:

a) Located within the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT);

b) NCER has hosted many multinational companies and local companies with approximately RM47.7 billion of investment in the year 2009 – 2016;

c) Year 2020, RM50 million for high impact strategic projects has been allocated to Chuping Valley Industrial Area in Perlis;

d) NCER plays a predominant role in agriculture in the NCER;

e) NCER is renowned for its rich natural and heritage attraction.

MAJOR PROJECTS DEVELOPMENT IN NCER

Perlis Inland Port

An inland port to capitalize on the border trade from southern Thailand.

RM0.94bil GNI per year by 2025
4,056 job creation

Chuping Valley Industrial Area (CVIA)

An on-going industrial park development to transform Perlis into an industrialised state.

RM4.5 bil investment by 2025
12,674 job creation

Kota Perdana SBEZ(KPSBEZ)

A mixed development comprising industrial park, logistics hub & commercial zones.

RM50bil total GDVby 2030
21,050 job creation

Kedah Science & Technology Park (KSTP)

A new industrial park that focuses on science and technology clusters located at the border region.

RM12.9bil total GDV by 2030
23,244 job creation

Kedah Rubber City (KRC)

Project that will focus on downstream rubber activities by creating a complete rubber.

RM9.7bil investment by 2030
14,471 job creation

MAIN ELIGIBILITY CRITERIA FOR NCER TAX INCENTIVE PACKAGES

a) A company incorporated in Malaysia under the Companies Act 1965 or Company Act 2016;

b) The company must be undertaking a qualifying project or activity in NCER;

c) For Foreign Direct Investment (FDI), the company must submit its application to Northern Corridor Implementation Authority (NCIA) before commencing operation/production (including trial production);

d) For Domestic Direct Investment (DDI), the incentive application submitted to NCER must not more than twelve (12) months from production services of the proposed project. The company must be owned by 60% Malaysian Resident and must hold equity in 5 years within the incentive period;

e) Company is required to source minimum 50% of raw material/ components/ services produced in Malaysia. Employment of full time employee in compliance with current national policy;

f) Applicable to application received by NCIA from 17 August 2017 until 31 December 2025.

TAX INCENTIVES IN NCER

Sector

Promoted Activities

NCER Incentives

A. Manufacturing

1. Electrical & Electronic
2. Machinery & Equipment

a. Green Technology (product)

b. Medical Devices (products)

c. Automotive (products)

d. Additive Manufacturing (products)

e. Aerospace (products)

Kedah & Perlis

1. Income tax exemption of 100% of statutory income for 10 years (5 + 5); OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 10 years. This allowance will be set-off against up to 70% of the statutory income.

3. A 50% reduction of stamp duty on instruments of transfer or lease of land.

Perak & Penang

4. Income tax exemption of 70% of statutory income for 10 years (5 + 5); OR

5. An allowance of 70% on the qualifying capital expenditure incurred within 10 years. This allowance will be set-off against up to 70% of the statutory income.

B. Agriculture & Bio-Industries

a. Sustainable Agriculture

b. Processing of Agriculture Produce

c. Superfruit/ Superfood (Upstream)

d. Superfruit/ Superfood (Downstream)

e. Green Technology Services

f. Halal Industry Seed Research & Development

Kedah, Perlis, Perak & Penang

1. Unutilised allowances are allowed to be carried forward to the following years until fully utilised.

2. Import duty exemption on plant and machinery, equipment, spare parts, raw materials and components not produced locally and used directly in production activities.

C. Service

1. Tourism
2. Logistic

1. Tourism:
a. Medical Tourism
b. Hotel Business
c. Tourism Projects
d. Business Tourism

2. Logistics:
a. Warehousing
b. Freight Forwarding
c. Transportation

Kedah and Perlis only

1. Income tax exemption of 100% of statutory income for 10 years; OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 10 years; AND

3. A 50% reduction of stamp duty on instruments of transfer or lease of land.

Perak and Penang Only

1. Income tax exemption of 70% of statutory income for 10 years (5+5); OR

2. An allowance of 70% on the qualifying capital expenditure incurred within 10 years.

3. Import duty exemption on plant and machinery, equipment, spare parts, raw materials and components not produced locally and used directly in production activities for Kedah, Perak, Perlis and Penang.

D. Medical Science and Science & Technology

Contract R&D
Research, development and inspection works for customers.

Kedah and Perlis only

1. Income tax exemption of 100% of statutory income for 10 years; OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 5 years.

Perak and Penang only

1. Income tax exemption of 70% of statutory income for 10 years (5 + 5); OR

2. An allowance of 70% on the qualifying capital expenditure incurred within 10 years.

In-House R&D
Research & development undertaken by Malaysian company for their own business.

Kedah, Perak, Perlis and Penang

1. An allowance of 100% on the qualifying capital expenditure incurred within 10 years. This allowance will be set-off against up to 70% of the statutory income.

2. Unutilised allowances are allowed to be carried forward to the following year until fully utilised.

R&D Company
Research on science or technology including Industry 4.0 for the production/ improvement of materials, equipment, products or processes.

E. Agriculture

Seed R&D Centre
Investor

Kedah and Perlis only

1. Income tax exemption of 100% of statutory income for 10 years; OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 5 years.

Perak and Penang only

1. Income tax exemption of 70% of statutory income for 10 years (5 + 5); OR

2. An allowance of 70% on the qualifying capital expenditure incurred within 10 years.

Seed R&D Centre
Operator

Kedah and Perlis only

1. Income tax exemption of 100% of statutory income for 10 years (5 + 5); OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 10 years. This allowance will be set-off against up to 70% of the statutory income.

3. Unutilised allowances are allowed to be carried forward to the following years until fully utilised.

4. Industrial Building Allowance for 10 years on building used for Seeds R&D Centre operating in Kedah Science & Technology Park (KSTP).

5. Tax deduction for 5 years on cost incurred to acquire property rights with condition that the Seed R&D Centre is at least 51% Malaysian owned.

Approved Agriculture Project

Kedah, Perlis, Perak and Penang

1. Income tax exemption of 100% of statutory income for 10 years on new project undertaken; OR

2. Income tax exemption of 100% of statutory income for 5 years on expansion project approved by Jawatankuasa Penilaian Insentif Sektor Pertanian (JPISP).

3. Tax deduction for investor company carrying on an Approved Agriculture Project by JPISP.

F. Support Industry

Education

a. Private Institution of Higher Learning

b. Technical & Vocational Education and Training (TVET)

c. International/ Private Schools

Kedah and Perlis only

1. Income tax exemption of 70% of statutory income for a period of limited 5 years; OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 5 years. This allowance will be set-off against up to 70% of the statutory income.

3. Unutilised allowances are allowed to be carried forward to the following years until fully utilised.

G. Special Incentive

1. Selama
2. Perak Tengah
3. Kuala Kangsar
4. Badan Datuk
5. Seberang Prai Utara
6. Seberang Prai Selatan
7. Seberang Prai Tengah
8. Barat Daya Pulau Pinang

Perak and Penang only

1. Income tax exemption of 100% of statutory income for a period of 15 years; OR

2. An allowance of 100% on the qualifying capital expenditure incurred within certain period, will be set-off against up to 70% of the statutory income.

H. Kedah Science & Technology Park (KSTP)

1. KSTP Park Manager

Income tax exemption of 100% of statutory income for 5 years. This approval applies only to the first industrial park manager at KSTP.

2. R&D & Manufacturing activities (Operators)

a. Manufacturing activities in agro-science;
b. Advanced material
c. Information & Communication Technology;
d. Biotechnology;
e. Component R & D;
f. Halal science;
g. Green Technology

1. Income tax exemption of 100% of statutory income for 15 years (5+5+5); OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 10 years (5+5). This allowance will be set-off against up to 70% of the statutory income.

3. Unutilised allowances are allowed to be carried forward to the following years until fully utilised.

4. A 50% stamp duty reduction on transfer or lease of land/building.

5. Import duty exemption on plant and machinery, equipment, spare parts, raw materials and components which are not produced locally and used directly in production activities.

6. This approval is subject to product/service provision from qualifying activity. This approval does not apply to income derived from intellectual property services.

3. Developer
Commercial property development only

Income tax exemption of 70% of statutory income for 5 years.

4. KSTP Global Research Centre (GRC)

Income tax exemption of 100% of statutory income for 15 years (5+5+5).

5. Education
a. IHL and TVET

1. Income tax exemption of 100% of statutory income for 5 years; OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 5 years.

I. Chuping Valley Industrial Area (CVIA)

1. Developer
Commercial property development only

1. Income tax exemption of 70% of statutory income for 5 years for the following income:

a. Disposal of all or part of right or land/building located at CVIA; OR

b. Rental of all or part or the land/buildings located at CVIA.

2. Stamp duty exemption on transfer or lease of land only.

2. CVIA Park Manager

Income tax exemption of 100% of statutory income for 5 years.

3. Waste-To-Resources Facilities Provider

1. Income tax exemption of 100% of statutory income for 15 years; OR

2. An allowance of 100% allowance on the qualifying capital expenditure incurred within 10 years. This allowance will be set-off against up to 70% of the statutory income. Unutilised allowances are allowed to be carried forward to the following years until fully utilized.

3. A 50% stamp duty reduction on transfer or lease of land/ building.

4. Import duty exemption on plant and machinery, equipment, spare parts, raw materials and components which are not produced locally and used directly in production activities.

4. Education

a. Institution of Higher Learning (IHL); and
b. Technical and Vocational Education and Training (TVET).

1. Income tax exemption of 100% of statutory income for 5 years; OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 5 years. This allowance will be set-off against up to 70% of the statutory income. Unutilised allowances are allowed to be carried forward to the following years until fully utilized.

5. Companies That Undertake Qualifying Activities (Operators)

a. Green Manufacturing;
b. Halal industry;
c. Machinery and equipment;
d. Specialised machinery and equipment;
e. Green Energy Generation

1. Income tax exemption of 100% of statutory income for 15 years (5+5+5); OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 10 years (5+5). This allowance will be set-off against up to 70% of the statutory income.Unutilisedallowances are allowed to be carried forward to the following years until fully utilized.

3. A 50% stamp duty reduction on transfer or lease of land/ building.

J. Kedah Rubber City (KRC)

1. Manufacturer

1. Income tax exemption of 100% of statutory income derived from Rubber City qualifying activities for 10 years commencing from first year the company generates statutory income; AND

2. Income tax reduction of 50% for 5 years after expiry of the first 10 years; OR

3. An allowance of 100% on the qualifying capital expenditure incurred within 5 years. This allowance will be offset against up to 100% of statutory income for each assessment year.

4. Stamp duty exemption on the instrument of transfer of land or building or lease of land or building used for the qualifying activities in Rubber City.

5. Tax deduction for pre-operating expenses incurred within 4 years before the commencement date of qualifying activity and such expenses shall be deemed to be incurred on the commencement date.

3. Main Developer and Residential and Commercial Developer

1. Income tax exemption of 100% of statutory income derived from Rubber City qualifying activities for 10 years commencing from first year the company generates statutory income; OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 5 years. This allowance will be offset against up to 100% of statutory income for each assessment year.

3. Stamp duty exemption on the instrument of transfer of land or building or lease of land or building used for the qualifying activities in Rubber City.

4. Catalytic Anchor Tenants

1. Income tax exemption of 100% of statutory income derived from Rubber City qualifying activities for 10 years of commencing from first year the company generates statutory income; OR

2. An allowance of 100% on the qualifying capital expenditure incurred within 5 years. This allowance will be set-off against up to 100% of the statutory income for each assessment year.

3. Stamp duty exemption on the instrument of transfer of land or building or lease of land or building used for the qualifying activities in Rubber City.

4. Tax deduction for pre-operating expenses incurred within 4 years before the commencement date of qualifying activity and such expenses shall be deemed to be incurred on the commencement date.

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Featured Ideas & Insights Publications Tax

Investing In The East Coast Economic Region (ECER), Malaysia

Post author By admin
Post date November 11, 2019
No Comments on Investing In The East Coast Economic Region (ECER), Malaysia

Investing In The East Coast Economic Region (ECER), MALAYSIA

East Coast Economic Region Malaysia (ECER) as the Gateway to the Asia Pacific Region offers competitive incentives such income tax exemption of 100% for 10 years, stamp duty exemption on land or building purchased for development, customised incentives and also non-fiscal incentives to approved companies.

QUICK FACTS: ECER MALAYSIA

The East Coast Economic Region (ECER) is an economic corridor established to bring about the socio-economic transformation of the east coast of Peninsular Malaysia. The ECER is Malaysia’s gateway to the ASEAN region and the Far East.

ECER covers the states of Kelantan, Terengganu, Pahang and the district of Mersing in Johor. The advantages include:-

Strong support from Federal and State Governments with pro-business and liberal investment policies;
Advantageous geographical orientation Eastern Gateway of Malaysia to Europe, US and Asia Pacific;
Strong resources endowment – crude oil, natural gas, tin, timber, palm oil, rubber and others;
Competitive land prices;
Industrial park ready with infrastructure;
Market-oriented economy – exporter of resource based and manufacturing products;
Multilingual workforce speaking two or three languages, including English and Mandarin;
Large and established foreign business communities in all business sectors;
Special incentives and facilitation fund for human capital development for investors in ECER;
ECER Development Council is the one-stop facilitation centre to assist investors in dealing with Malaysia Government for their investment in ECER;
Competitive wage rates compared to the more developed regions of Malaysia.

MAIN ELIGIBILITY CRITERIA FOR ALL THE CLUSTERS:

Company incorporated under the Companies Act 1965 or Company Act 2016 and resident in Malaysia;
Undertaking a qualifying activity in ECER or has commence a qualifying activity not more than one (1) year from the date of application made and approval by the Minister;
Investors investing in a related company shall own at least 70% equity/paid-up ordinary shares of the company; and
Application to be made on or after 13 June 2008 but not later than 31 December 2020.

ECER INCENTIVE PACKAGE FOR MANUFACTURING CLUSTER

Promoted Activity

ECER Incentives

Selected manufactured and agro-based products.
Selected manufacturing related services.

Tax Exemption:
- Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
- Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years.
Stamp duty exemption on land or building acquired for development.

ECER INCENTIVE PACKAGE FOR TOURISM CLUSTER

Promoted Activity

ECER Incentives

Tourism

Culture and Heritage.
Island tourism.
Mainland coastal tourism.
Cross border tourism.
Eco-tourism.
Health tourism.

Tax exemption:
- Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
- Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years.
Stamp duty exemption on land or building acquired for development.
Withholding tax exemption on royalty and technical fees up to 31 December 2020 for tourism sector only.
Single deduction up to maximum of RM1million for a year of assessment for sponsors of such Hallmark Event approved by ECER Development Council.

ECER INCENTIVE PACKAGE FOR CULTURE & HERITAGE

Promoted Activity

ECER Incentives

Culture and Heritage

Making of batik, songket or royal tenun.
Making of brassware or silverware.
Making of traditional kites.
Woodcarving.
Selected art and craft projects including print-making or sculpting.

Tax exemption
- Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
- Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years;
- Stamp duty exemption on land or building acquired for development.
- Withholding tax exemption on royalty and technical fees up to 31 December 2020 for tourism sector only.
- Single deduction up to maximum of RM1million for a year of assessment for sponsors of such Hallmark Event approved by ECERDC.

ECER INCENTIVE PACKAGE FOR AGRICULTURE AND AGRICULTURE RELATED SERVICES CLUSTER

Promoted Activity

ECER Incentives

Agriculture

Cultivation of kenaf, vegetable, fruit, herbs, spices or cocoa.
Biomass Plantation including cassava, acacia mangium, leucana leucocephala.
Planting of Hevea brasiliensis.
Floriculture including ornamental flowers.
Aquaculture.
Inland and Deep sea fishing.
Rearing of cattle, buffalo, goat, sheep, ostrich, turkey and quail.

Tax exemption:
- Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
- Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years.
Stamp duty exemption on land or building acquired for development.
Deduction to the amount of investment made in the promoted project or activity.

ECER INCENTIVE PACKAGE FOR AGRICULTURE AND AGRICULTURE RELATED SERVICES CLUSTER

Promoted Activity

ECER Incentives

Agriculture – related services

Collecting, processing and packaging of agricultural produce.
Collection and marketing of agricultural produce.

Tax exemption:
- Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
- Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years.
Stamp duty exemption on land or building acquired for development.
Deduction to the amount of investment made in the promoted project or activity.

ECER INCENTIVE PACKAGE FOR KNOWLEDGE, EDUCATION AND ICT DEVELOPMENT CLUSTER

Promoted Activity

ECER Incentives

Education and training.
Information, communication and technology.

Tax exemption:
- Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
- Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years.
- Stamp duty exemption on land or building acquired for development.
- Withholding tax exemption on royalty and technical fees up to 31 December 2020.

ECER INCENTIVE PACKAGE FOR OIL, GAS AND PETROCHEMICAL CLUSTER

Promoted Activity

ECER Incentives

Selected oil, gas and petrochemical products or activities.

Tax exemption:
- Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
- Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years.
Stamp duty exemption on land or building acquired for development.

ECER INCENTIVE PACKAGE FOR OIL, GAS AND PETROCHEMICAL CLUSTER

Promoted Activity

ECER Incentives

1. Approved developers undertaking development in industrial parks or fee zone.

Income tax exemption for 10 years commencing from the year company derives statutory income:-

disposal of any right over any land or disposal of a building or rights over a building or part of a building; or
rental of building or part of a building.

2. Approved development manager providing management, supervisory or marketing services in relation to the development of an industrial park or free zone.

3. Approved park managers providing park management services including maintenance, marketing and rental of common facilities and utilities services in the industrial park or free zone.

Income tax exemption for 10 years commencing from the year company derives statutory income derived from a qualifying activity.

4. Qualifying person who sponsors a hallmark event.

A deduction equivalent to the amount not exceeding RM1 million for each year of assessment in respect of cash contribution or contribution-in-kind.

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Advisory Featured Ideas & Insights Publications

Mergers & Acquisitions

ShineWing provides M&A advisory services for international clients in domestic and cross-border transactions. We offer comprehensive one-stop service at every stage of the transaction, tailored to the specific needs of diﬀerent types of clients.

M&A Advisory Services

In the fast-changing global business environment, corporates nowadays face more formidable challenges than before in mergers or acquisitions. ShineWing focuses on the needs of corporates and helps clients to effectively navigate complexities throughout the transaction lifecycle, so as to achieve your objectives of overseas market development and business expansion.

ShineWing provides M&A advisory services for international clients in domestic and cross-border transactions. We offer comprehensive one-stop service at every stage of the transaction, tailored to the specific needs of different types of clients.

Transaction Process

1. Transaction Planning Stage

At the early stage of the transaction, we can provide our clients with timely and comprehensive recommendations and devise the best and effective solutions customised for you, helping you to capitalise on opportunities. Our professional services include, but are not limited to:

Identify M&A target or joint venture partner both locally and internationally
Conduct thorough investigation of the target
Develop the plan for market entry and evaluate project feasibility
Formulate M&A strategies

2. Transaction Execution Stage

Regardless of the size and complexity of the transaction, ShineWing can provide all-round advice on transaction negotiation and execution, helping clients to realise the best value. Our professional services include, but are not limited to:

(i) Financial and Tax Due Diligence

To minimise the risks associated with the accounting and tax issues of the transactions, ShineWing performs in-depth due diligence.

Financial Position

Understand shareholding structure
Analyse the structure and trends of profitability and costs
Analyse assets and liabilities in detail
Assess drivers behind profits and cash flows
Conduct an integrated analysis of the target’s financial condition, capital structure, business performance and potential

Tax Position

Identify financial and tax issues, and provide recommendations on mitigation
Advise on M&A tax structuring

Risk Control

Perform sensitivity analysis of revenue projections
Highlight key success factors and risk factors
Analyse the solutions to the related risks

(ii) Valuation

Carry out comprehensive valuation of businesses and assets of the target
Adjust purchase price based on the valuation result
Review the target’s financial model
Assess the rationale of the assumptions
Apply appropriate methodologies based on the nature of the deal
Provide independent and objective views on valuation

(iii) Deal Advisory

Act as the financial advisor to the buy side or sell side
Formulate deal negotiation strategy and manage the transaction process
Organise meetings and support deal negotiations
Devise and build efficient transaction structures
Coordinate with different professional services providers on due diligence
Assist in seeking government authority approval
Assist in the preparation of Sales and Purchase Agreement and develop the financial and commercial terms for the transaction

(iv) Commercial Due Diligence

Commercial due diligence focuses on conducting extensive and in-depth analysis of the target and collecting opinions from industry experts.

Market and Regulatory Environment

Evaluate market size and growth drivers
Analyse demand, supply and the elasticity of price change
Review government regulations and industry policies
Review regulatory risks and recommend risk mitigation strategies

Suppliers and Customers

Review the target’s supplier selection criteria
Evaluate the quality of the target’s customer base and growth potential
Assess the value proposition to customers and identify any unmet needs

Competitors

Define the competitive environment in which the target operates and the competitive intensity
Analyse the market share of the competitors

Target

Assess the business plan and growth strategy of the target
Evaluate management capability

3. Post-Transaction Stage

ShineWing can also help clients with the post-merger integration and optimisation. We provide various kinds of follow-on services and help you to build sound and effective management systems according to your needs. Our professional services include, but are not limited to:

Corporate Structure
Review the corporate structure and develop an effective strategy for integration or restructuring.
Risk Management and Internal Control System
Devise risk management and internal control policies for the parent company and the new entity, and set up consistent and transparent systems.
Accounting Systems and Financial Reports
Establish standardised accounting systems and apply unified accounting policies and procedures to the financial reports.
Information System
Integrate information management systems, with emphasis on management effectiveness of smooth operation.
Human Resources
Develop proper human resources solutions for the newly merged company, such as employee retention plan, performance and pay structure and human resources integration programme.
Subsidiaries Management
Establish effective management framework for subsidiaries, with emphasis on the enterprise management system and financial system of the subsidiaries.

Our Credentials in M&A Advisory Services

Over the years, our professional teams have accumulated a wealth of experience in different industries. We can provide all-round support throughout the transaction for clients spanning a range of sectors all over the world, focusing on the unique characteristics and needs of each industry.

The areas where ShineWing has been involved in cross-border M&A deals:

North America

A Hong Kong listed company acquired a resort in Canada
One of the global largest independent investment management firms invested in an environment technology company in the United States

South America

A chemical engineering company in Chile acquired a supplier in China

Europe

A leading digital map provider in China acquired a provider of automotive navigation services in Holland
The largest footwear manufacturing group in Germany sought partnerships in China
An electronics group in Sichuan, China intended to acquire a consumer electronics distributor in 11 European countries
A large automotive company in China intended to acquire an engineering company in Europe
One of the largest providers of fuel retailing solutions in Europe intended to acquire a fuel equipment supplier in China

Africa

A China and Africa investment fund invested in a logistics company in Africa

Strengths of ShineWing

1. International Network

ShineWing has over 7,000 professionals worldwide. Leveraging the resources of our member firms, our professional teams have in-depth M&A knowledge, with a good understanding of different local markets as well as global vision, offering genuinely international services to our clients.

2. Global Experience

ShineWing has extensive experience in transnational and cross-border transactions. We have successfully assisted our clients in different industries to complete several hundreds of international M&A and investment projects, covering Asia, Australia, Europe, Americas, Africa, etc.

3. Leading Position

ShineWing was named as one of the Top 20 global accounting networks and had been awarded the Rising Star Network by the International Accounting Bulletin (IAB). ShineWing is also widely recognised by statutory and professional institutions. We have offices in at least 24 major cities in China. ShineWing is the leading professional services provider in Asia Pacific.

4. Praxity Global Alliance

ShineWing is a member of Praxity, which has participating firms in over 100 countries operating out of over 690 offices globally. We work closely with Praxity to provide comprehensive international M&A advisory services. We can cater to the needs of clients at different stages, ranging from searching for M&A targets to providing due diligence and tax advisory services.

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Advisory Ideas & Insights Publications

Malaysia My Second Home (MM2H) Programme

Post author By admin
Post date July 31, 2018
No Comments on Malaysia My Second Home (MM2H) Programme

Malaysia My Second Home (MM2H) Programme

Malaysia My Second Home (MM2H) Programme is a special programme promoted by the Government of Malaysia to allow foreigners to obtain a ten (10) years (renewable) social visit pass to stay in Malaysia.

Malaysia My Second Home (MM2H)

Malaysia My Second Home (MM2H) Programme is a programme promoted by the Government of Malaysia to allow foreigners who fulfil certain criteria to obtain multiple-entry social visit pass to stay in Malaysia.
Multiple-entry social visit pass valid from 5 years and is renewable.
This programme open to all citizens from all the countries recognised by Malaysia, regardless of religion, race, gender and age.
Principal applicants are allowed to bring their spouse and unmarried children below the age of 21 and parent.
More than 50,000 participants around the world participated this programme.

Why Malaysia

This programme promoted by the Government of Malaysia.
Malay language as official language, English and others language used widely.
No natural disaster and political stable.

Benefits of MM2H

From a period of five (5) years, and is renewable.
Min 60 days of staying per annum.
Political stable;
No English requirement.

MM2H REQUIREMENT – PLATINUM

Platinum

Signed agreement with MM2H authorised agent

Financial Requirement

Open a fixed deposit account of RM5,000,000.
Maximum withdrawal of 50% is allowed after one year for the purpose of purchasing real estate (limit to the value of RM1.5 million and above), healthcare and traveling within Malaysia.
Maintain a minimum balance of RM2,500,000 from second year Onward throughout stay in Malaysia under this programme.

Minimum stay

Minimum stay of 60 days per annum.
for participants aged 30-49, existence/residence in Malaysia must be fulfilled either by the principal or spouse/dependant respectively.

MM2H Pass

eligible to obtain permanent resident status after obtaining a MM2H pass*.

* Subject to minister approval

MM2H REQUIREMENT – GOLD

Gold

Signed agreement with MM2H authorised agent.

Financial Requirement

Open a fixed deposit account of RM2,000,000.
Maximum withdrawal of 50% is allowed after one year for the purpose of purchasing real estate (limit to the value of RM750,000 and above), healthcare and traveling within Malaysia.
Maintain a minimum balance of RM1,000,000 from second year Onward throughout stay in Malaysia under this programme.

Minimum stay

Minimum stay of 60 days per annum.
For participants aged 30-49, existence/residence in Malaysia must be fulfilled either by the principal or spouse/dependant respectively.

MM2H Pass

MM2H pass valid for 15 years as well as multiple entry visas for the principal and dependents which can be renewed.

MM2H REQUIREMENT – SILVER

Silver

Signed agreement with MM2H authorised agent.

Financial Requirement

Open a fixed deposit account of RM500,000.
Maximum withdrawal of 50% is allowed after one year for the purpose of purchasing real estate (limit to the value of RM750,000 and above), healthcare and traveling within Malaysia.
Maintain a minimum balance of RM250,000 from second year Onward throughout stay in Malaysia under this programme.

Minimum stay

Minimum stay of 60 days per annum.
For participants aged 30-49, existence/residence in Malaysia must be fulfilled either by the principal or spouse/dependant respectively.

MM2H Pass

MM2H pass valid for 5 years as well as multiple entry visas for the principal and dependents which can be renewed.

MM2H PROGRAMME STATISTIC

2002 to 2019*(Top 10)

*For 2019, only data on applications – not approvals – are available

People’s Republic of China

15,643

Japan

4,792

People’s Republic of Bangladesh

4,136

United Kingdom

2,685

Republic of Korea

2,331

Islamic Republic of Iran

1,463

Republic of Singapore

1,384

Republic of China (Taiwan)

1,391

Hong Kong S.A.R

1,063

Republic of India

1,039

Others

14,181

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China-Malaysia Belt & Road Advisory

Post author By admin
Post date March 15, 2018
No Comments on China-Malaysia Belt & Road Advisory

China-Malaysia Belt & Road Advisory

No matter which part of China you are located in, by leveraging on our China team’s expertise, network and geographical presence in China, ShineWing TY TEOH can help you set up your businesses in Malaysia hassle-free.

ONE BELT ONE ROAD INITIATIVES

One Belt one Road (“The Silk Road Economic Belt and The 21st century Maritime Silk Road”) initiated by the People of Republic China’s Government in 2013 and was to focus on creating networks for more efficient and productive free flow of trade as well as the integration of international markets both physically and digitally.

The initiative includes six international corridors:

The new Eurasia land Bridge;
The China-Mongolia-Russia Economic Corridor;
China-Central Asia-West Asia Economic Corridor;
China-Indochina Peninsular Economic Corridor;
China-Pakistan Economic Corridor;
Bangladesh-China-India-Myanmar Economic Corridor

WHO WE ARE

ShineWing China Practice established in the early 1980s with HQ located in Beijing and has expanded across in the major cities of China, including Shenzhen, Chengdu, Shanghai, Xi’an, Tianjin, Qingdao, Changsha, Changchun, Yinchuan, Jinan, Dalian, Kunming, Guangzhou, Fuzhou, Nanjing, Urumqi, Wuhan, Hangzhou, Taiyuan, Chongqing, Nanning and Hefe.

ShineWing China is a registered auditor of public interest entities trade on two China Stock Exchange, the Shanghai Stock Exchange and the Shenzhen Stock Exchange including A-Shares, B-Shares and H-Shares and served more than 240 public listed companies in China including China State-owned enterprises, Fortunate 500 and multi-national corporations.

Today, ShineWing International has been established as a global network of independent accounting and consulting firms, ShineWing member firms communicate and work with one another closely being part of ShineWing network, and with the leverage of our China team’s expertise, experiences, network and geographical presence in China, no matter which part of China you are located, ShineWing TY TEOH helps China business venture into Malaysia without hassle-free experiences.

WHAT’S OUR TRACK

China One Belt One Road Businesses venture into Malaysia have engaged us for ongoing work or specific projects. Client Reference are available upon request.

CLIENT REFERENCES IN CHINA

Our Credentials

Corporate Member of TheInstitute of Internal Auditors (IIA)

Approved and registered under Accounting Oversight Board (PCAOB)

Approved Auditor of Labuan Financial Services Authority (Labuan FSA)

Awarded as Top 20 largest international accounting network by International
Accounting Bulletin.

Articles Related to China Desk

ShineWing TYTEOH Malaysia visited ShineWing China Shanghai offices

ShineWing International establishes its presence in Malaysia to support China’s Belt & Road Initiative

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Featured Ideas & Insights Publications Valuation

Price is What You Pay Value is What You Get

Post author By admin
Post date March 14, 2018
No Comments on Price is What You Pay Value is What You Get

Price is What You Pay Value is What You Get

Valuation is a range of value and every business and intangible assets are unique. Is the transfer of your asset or liability between identified knowledgeable and willing parties that reflects the respective interests of those parties?

Business valuation is a process of determining the value of a business enterprise or ownership interest therein while Intangible assets are assets that do not have physical substance but represent some value to the owner, we assist you to perform the business and intangible assets in accordance with International Valuation Standards including:

a) Business Valuation:

Business Planning
Estate, Gift and Income Tax
Financial Reporting
Goodwill Impairment
Initial Public Offering (IPO)
Litigation and Ownership Disputes
Marital Dissolution
Mergers and Acquisitions
Pre-IPO Advisory
Reorganisations or Liquidation
Shareholder Oppression Cases
Stock Option Plans

b) Intangible Assets Valuation:

Marketing-related:

Trademarks, trade names, service marks, collective marks, certification marks, internet domain names, trade dress and newspaper mastheads.

Customer-related:

Customer lists, order or production backlog, customer contracts and the related customer relationships which meet contractual criterion, and non-contractual customer relationships which meet the separability criterion.

Artistic-related:

Plays, operas, ballets, books, magazines, newspapers, literary works, video and audio-visual materials, musical works, pictures and photographs and artistic works which meet contractual criterion.

Contract-based:

Licences, royalties and standstill agreements, advertising, construction, management, service or supply contracts, lease agreements, franchises, operating and broadcasting rights, use rights such as drilling, water, air, mineral and timber-cutting, servicing contracts such as mortgage and employment contracts and non-competition agreements.

Technology-based:

Patented and non-patented technology, computer software, mask works, databases and trade secrets such as formulas, process or recipes.

c) Brand Valuation

For financial perspective

Compliance with accounting standards
Assisting mergers and acquisitions and corporate restructuring
Intellectual property management
Strengthening balance sheets and company accounts
Increasing shareholder confidence which consequently improves the share price
Providing financial transparency and solid proof to donor and contributors for non-profit organization

For marketing perspective

Brand management and strategic development
Enhancing management communications
Benchmarking of competitors
Creating a brand-centric culture
Establishing royalty rates for licensing arrangements

For legal perspective

Identifying value of intangible asset in an ownership dispute
Securing funds by value of intangible asset in insolvency situation
Evaluating economic damage in trademark infringement
Licensing claim
Partnership dissolution

OUR VALUATION METHODOLOGIES

a) Cost Approach

Cost approach is a general way of determining a value indication of a business, business ownership interest, or security using one or more methods based on the value of the assets net of liabilities.

In the valuation of a business, cost approach presents the value of all the tangible and intangible assets and liabilities of the company.

b) Market Approach

Based on the principle of competition, market approach assumes if one thing is similar to another and could be substituted for the other, they would compete with each other, then they must be equal in value. The fair value derived must be based on a sufficient number of comparable companies / market transactions in order to derive a relevant and meaningful comparison.

c) Income Approach

Under income approach, it is required to forecast the future benefit streams over a reasonably foreseeable short term and an estimate of a long term benefit stream that is stable and sustainable. Using an appropriate discount rate, the future benefit streams (in the form of cash flow) are discounted back to the valuation date as present values and summed up to derive the fair value.

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