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Featured Ideas & Insights Publications Tax

Green Investment Tax Allowance (GITA) For Own Comsumption

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MALAYSIA GREEN INVESTMENT TAX ALLOWANCE (GITA) FOR OWN COMSUMPTION

Companies undertake in green technology project for own consumption may enjoy up to 100% Green Investment Tax Allowance (“GITA”) to be offset against 70% of statutory income. Promoted activities such as green building, renewable energy system, energy efficiency, battery energy storage system, electric vehicles etc.
In 2024 Budget, the green technology tax incentives have been revised to the following categories:
  • Green Investment Tax Allowance (GITA) Project for Business Purposes;
  • Green Investment Tax Allowance (GITA) Asset for Own Consumption; and
  • Green Income Tax Exemption (GITE) Solar Leasing
The Malaysian Green Technology and Climate Change Corporation (MGTC) has issued a new guideline for GITA for own consumption project as below:

(i) Investment Tax Allowance :

Tier 1
Tier 2
Qualifying Activities
Qualifying asset as approved by Minister of Finance, Battery Energy Storage System (BESS) and Green Building.
Qualifying asset as approved by Minister of Finance (Appendix 11), Renewable Energy System and Energy Efficiency (Appendix 2).
Percentage of GITA
100%
60%
Percentage (%) of Statutory Income to be Set-Off
70%
70%
Qualifying CAPEX
  • The qualifying capital expenditure must be an approved asset by MOF that have been verified by MGTC and is listed under the MyHIJAU Directory;
  • For Green Building, the qualifying CAPEX must be verified by the locally Green Building Rating Tools/ Certification Body approved by Government;
  • The asset must be new and owned by the Company;
  • The asset must be used in the business carried out by the company in Malaysia for own consumption and not for income generation.
Qualifying Asset
  • Electric vehicles (for commercial / industrial used only);
  • EV Infrastructure;
  • Green Building;
  • Energy Storage
  • Energy Efficiency;
  • Renewable Energy System;
  • Waste Composter or waste recycling;
  • Wastewater recycling or rainwater harvesting
Incentive Period
Qualifying Capital Expenditure incurred starting from 1 January 2024 until 31 December 2026.
Application Period
The application made under the GITA Asset Guidelines must be received by the Malaysian Green Technology and Climate Change Corporation [“MGTC”] from 1st January 2024 until 31st December 2026.

(ii) Eligibility Criteria:

a) New or existing Company:
  • A newly established company that incurred qualifying capital expenditure under GITA Asset; OR
  • Existing Company operating in Malaysia but has not incurred qualifying capital under GITA Asset and has not been approved for Green Technology Incentive.
b) Companies within the same group incurring the qualifying capital expenditure:
  • The project carried out in building/location separately from activities carried out by holding company or related companies;
  • The plant, machinery and equipment used shall be separately used and shall not be transferred from holding company or related companies;
  • Not shares the same employees as per holding company or related companies except for the management staff and directors of the Company;
  • This project must not result in a reduction in the investment of holding company or related companies.
c) To comply all the following criteria:
  • Minimize the degradation of the environment or reduce greenhouse emission;
  • Promotes health and improvement of environment; and
  • Conserves the use of energy, water and/or other forms of natural resources or promote the use of renewable energy or able to recycle waste material resources.

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Featured Ideas & Insights Publications Tax

Malaysia Cold Chain Facilities

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Malaysia Cold Chain Facilities

Investment in cold chain facilities or providing services for perishable agricultural produce such as fruits, vegetables, flowers, ferns, meat and aquatic products eligible for tax exemption up to 70% of statutory income or Investment Tax Allowance of 60% up to 5 years.

Companies providing cold chain facilities and services for perishable agricultural products i.e. fruits, vegetables, flowers, ferns,
meat and aquatic products are eligible for:

Type of Company
Incentive
New Company

  • Pioneer Status with tax exemption of 70% of statutory income for a period of
    5 years;

  • Unabsorbed pioneer losses after the end of pioneer period are allowed to be
    carried forward for 7 consecutive year of assessments;

    OR

  • Investment Tax Allowance (ITA) of 60% on the qualifying capital expenditure
    incurred for 5 years;

  • Unutilised allowances can be carried forward until fully absorbed.

Existing Company
(Company intend to reinvest in cold chain facilities for perishable agricultural produce)
  • Pioneer Status with tax exemption of 70% of increased statutory income for
    a period of 5 years;
  • Unabsorbed pioneer losses after the end of pioneer period are allowed to be
    carried forward for 7 consecutive year of assessments;

    OR

  • Investment Tax Allowance (ITA) of 60% on the additional qualifying capital
    expenditure for 5 years;
  • Unutilised allowances can be carried forward until fully absorbed.
Eligible Company
Eligible Activities
  • Must be Independent Service Provider (i.e the company conducts all of the cold chain activities on its own);
  • At least 60% of the company’s revenue must be derived from the provision of cold room facilities, refrigerated transportation and other related services for local agriculture produce.
  • Provision of cold room facilities or refrigerated transportation for local agricultural produce with or without other post-harvest activities including cleaning, washing, grading, freezing/chilling and packing;
  • Provision of cold room facilities or refrigerated transportation for local processed food products.

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Malaysia Global Services Hub Tax Incentive

MSC Malaysia-Status-Service-Incentive

MALAYSIA GLOBAL SERVICES HUB TAX INCENTIVE

With Global Services Hub tax incentive, the companies will benefit from corporate income tax rates of 5% or 10% based on outcome for a period of up to ten (10) years. This incentive aims to establish Malaysia as a competitive hub in the global service sector in the region.
Global Services Hub tax incentive is an outcom-based incentives which uses a tiered rate in the provision of incentives on service income, or service and trading income achieved.

1. Overview Of The Incentive

An approved Global Services Hub company is eligible to enjoy the following concessionary corporate income tax rates:
Category
Concessionary Corporate Income Tax Rate
Period of incentive (Blocks Years)
Type of income exempted
A. New Company
Tier 1 : 0%
Tier 2 : 5%
5 (+5)
(i) Services income; or
(ii) Services and B Existing Company trading income
B. Existing Company
Tier 1 : 5% on value added income
Tier 2: 10% on value added income
5
(i) Services income; or
(ii) Services and B Existing Company trading income
Preferential income tax rate of 15% be given for a period of 3 consecutive years of assessment limited to three (3) non- citizen individuals holding key/C-Suite positions with a monthly salary of at least RM35,000 in a new company approved with Global Services Hub tax incentive.

2. Qualifying Services and Additional Services

  • Regional P&L / Business Management Unit;
  • Strategic Business Planning;
  • Corporate Development;

    AND

    Any 2 qualifying activities under the services category as follows:
  • Strategic services;
  • Business services;
  • Shared services;
  • Other services.

3. Outcome-based conditions

  • Annual operating expenditure;
  • High value full time employees;
  • C-suite with minimum salary of RM35,000;
  • Locally ancillary services;
  • Collaboration with higher education institution/TVET;
  • Training for Malaysian students/citizen;
  • Environmental. Social and Governance (ESG) elements; or
  • Other conditions as determined by the Minister of Finance.
Application received by Malaysian Investment Development Authority (MIDA) from 14 October 2023 to 31 December 2027.

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Featured Ideas & Insights Publications Tax

Why Dubai

Why Dubai

Why Dubai

The UAE’s 0% corporate tax policy transcends numbers; it’s an invitation to transform your business aspirations into reality. With a robust infrastructure, a strategic location, and a welcoming environment, the UAE beckons entrepreneurs and visionaries to harness its potential.

One of the LOWEST TAX RATES in the world, embracing 0% Corporate Tax in the UAE

The United Arab Emirates (UAE) stands as a global beacon of business innovation and prosperity. In the heart of this thriving economic landscape, the UAE offers an array of incentives and advantages to both local and international companies. At the core of this allure is the UAE’s corporate tax policy, a game-changer that propels businesses towards uncharted heights.

Tax Exemptions for Companies in Dubai vs Malaysia

Why Dubai-Tax Exemption
Tax
Rate
Conditions
Value-Added Tax (VAT)
While the UAE champions business freedom, it maintains a balanced approach with a 5% VAT rate, obliging businesses with revenue exceeding AED 375,000 Yet, the UAE’s commitment to global trade is evident as exports of goods remain untaxed, fostering an environment ripe for international commerce.
5%
0%
Businesses with revenue > AED 375,000 (USD 102,000)
Export of goods
Value-Added Tax (VAT)
In the UAE, the benefits extend beyond corporate tax. Dividends, capital gains, intragroup transactions, and reorganizations all enjoy a tax rate of 0%, fostering an ecosystem where business can flourish without restraint.
0%
Dividend and Capital gain, as well as intragroup transaction and reorganisations.

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Malaysia Digital Tax Incentive

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Malaysia Digital (MD) Status Incentive (formerly known as MSC Malaysia Status)

MSC Malaysia Status Service Incentive is now rebranded to Malaysia Digital (“MD”). Companies awarded with MD status shall be entitled to a set of incentives, rights and privileges from the Government of Malaysia. MD status companies have flexibility to choose benefits (either with or without tax incentives).

MALAYSIA DIGITAL (“MD”) STATUS SERVICE INCENTIVE (formerly known as MSC Malaysia Status)

On 4th July 2022, The Government of Malaysia through the Malaysia Digital Economy Corporation (“MDEC”) launched Malaysia Digital (“MD”) as the new national strategic initiative to accelerate and further develop digital economy replaces the Multimedia Super Corridor (“MSC”) Malaysia.

1. ELIGIBILITY CRITERIA

To be eligible to apply for the MD Status Company, companies are required to meet the following criteria:-
a) The company incorporated under the Companies Act 2016 and resident in Malaysia; AND
b) Proposing to carry out one or more of the MD activities (please refer Appendix A).
c) Other general conditions:-
  • To comply with all applicable permit/licensing requirements and to ensure that the required permit/license has been obtained from the relevant authority for the implementation of MD Approved Activities.
With effective from 25th March 2022, MD Status Company are not subjected to minimum office space requirements and are allowed to operate and undertake MD Approved Activities in any location within Malaysia.

2. BENEFITS OF MD STATUS COMPANIES

i. MD BILL OF GUARANTEES (BoGs)

  • A set of incentives, rights and privileges available for MD status companies;
  • MD status companies eligible to access or apply for, amongst others:-
    1. Tax incentives (income tax exemption or investment tax allowance);
    2. Foreign knowledge worker quota and passes;
    3. Multimedia / ICT equipment import duty and sales tax exemptions;
    4. Freedom of ownership by exempting local ownership requirements;
    5. Flexibility to source capital and funds globally

ii. OTHER BENEFITS

MD Status companies are also eligible to access facilitation of other benefits as below, subject to certain criteria and conditions:-
  • Access to the local and international market and ecosystem;
  • Business matching and partnership;
  • Grant and funding facilitation; and/or
  • Participation in MD catalytic programs.

3. COMPANIES WITH MD STATUS COMPANY WILL HAVE TO COMPLY WITH THE FOLLOWING CONDITIONS WITHIN 12 MONTHS FROM THE DATE OF AWARD OF SUCH STATUS:

Activity

Commencement of operation and undertaking of the Malaysia Digital Approved Activities in Malaysia.

Knowledge Workers

Minimum of 2 full-time employees (comprising knowledge workers) with minimum average monthly base salary of RM5,000 employed for the MD Approved Activities.

Operating Expenditure

Minimum annual operating expenditure of RM50,000 incurred for the MD Approved Activities.

Paid-up Capital

Minimum of RM1,000.00.
As per MDEC’s announcement, the guidelines for the above tax incentives will be released by soon. Please be guide accordingly.

THE MALAYSIA DIGITAL ACTIVITIES Research, development and commercialization of solution and/or provision of services in relation to any of the following technologies or areas:

  1. Big data analytics (BDA);
  2. Artificial intelligence (AI);
  3. Financial technology (FinTech);
  4. Internet of things (IOT);
  5. Cybersecurity (technology/software/design and support);
  6. Data centre and cloud (technology/software/design and support);
  7. Blockchain;
  8. Creative media technology;
  9. Sharing economy platform;
  10. User interface and user experience (UI/UX);
  11. Integrated circuit (IC) design and embedded software;
  12. 3D printing (technology/software/design and support);
  13. Robotics (technology/software/design)
  14. Autonomous (technology/software/design and support);
  15. Systems/network architecture design and support;
  16. Global business services or knowledge process outsourcing;
  17. Virtual, augmented and/or extended reality – new/additional activity ;
  18. Drone technology – new/additional activity ;
  19. Advance telecommunication technology – new/additional activity ; OR
  20. Other emerging technologies deemed significant for the digital ecosystem subject to approved by the Approval Committee – new/additional activity.

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Why Listing on 1Exchange (1X)?

Listing on 1Exhange-cover

Why Listing on 1Exchange (1X)?

1X’s strategic shareholder is SGX. 1X is widely regarded as 3rd Board and 1st MAS-regulated and cost-effective Private Securities Exchange in Singapore to design for private companies to enable them to trade on private share and provide ESOS and liquidity for their investors and employees, respectively.

Why Listing on 1Exchange (1X)?

1X’s strategic shareholder is SGX. 1X is widely regarded as 3rd Board and 1st MAS-regulated and cost-effective Private Securities Exchange in Singapore to design for private companies to enable them to trade on private share and provide ESOS and liquidity for their investors and employees, respectively.

 

Yes, you may be eligible! if your company has revenue of at least SGD 2 million with at least 2 years operating history, and the listing process only takes about 2-3 months. 

您公司有考虑在 1Exchange (1X) 上市？

如果您的公司符合以下条件：

  • 营业额：至少新加坡2百万新币。
  • 经营历史：至少2年，需提供审计过的财务报表。
  • 最低可流通股份：至少占股份的10%，且价值至少新加坡2百万新币。

时间范围：2至3个月。

谁是1 Exchange (1X)?

新加坡交易所（SGX）是1Exchange（1X）的战略股东和合作伙伴之一，1X是新加坡首家受金融管理局监管的私人证券交易所，被广泛视为全球金融中心的第三板块。

 

1X是一个“轻触式”和成本效益高的私人上市场所，专门为家族企业、成长中的公司和准备上市公司而设计。

 

此交易所提供市场导向的解决方案，例如直接私人上市和员工股票期权交易。通过1X上市，创始人、所有者和在成长阶段的公司依然可以在保留灵活性和控制权的同时，实现部分退出和可交易性的私人股份。

 

在1X上的私人投资者可以自由、安全地买入和卖出股份，随时随地可以达到实现流动性。

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Featured Ideas & Insights Publications Tax

Why Singapore?

Why Singapore

WHY SINGAPORE

Singapore is a strategic base to implement your growth strategies and to manage and integrate your operations for the region and beyond. Being one of the lowest income tax rate countries, Singapore has further announced a full and partial tax exemption for the newly incorporated company for the first 3 years consecutively.

1) One of the LOWEST TAX RATES in the world

With effect from 2010, Singapore corporate income tax rate has further reduced from 18% to 17%, being one of the lowest tax rates in the world. Singapore Government has declared a new start-up tax exemption and partial tax exemption for newly incorporated and existing companies:
Tax Exemptions for Newly Start-up Companies in Singapore vs Malaysia
Why Singapore-JP-01

4.25% tax on first S$100K chargeable income

For a newly incorporated company (1), the corporate income tax rate is 4.25% on the first S$100k (≈RM300k) of chargeable income for the first 3 years of assessment consecutively.

8.50% tax on chargeable income of above S$100K up to S$200K

The newly incorporated companies are continued to enjoy for the partial tax exemption which effectively translates to about 8.5% tax rate on chargeable income of above S$100,000 up to S$200,000 per annum. The chargeable income above S$200,000 will be charged at the normal headline corporate tax rate of 17%.
Tax Exemptions for Existing Companies in Singapore vs Malaysia
The 4th years of assessment and onwards, the companies pay only 4.25% tax on their first S$10,000 of chargeable Income and 8.50% for the next S$190,000. The chargeable income above S$200,000 will be charged at the normal headline corporate tax rate of 17%.
1. (a) It is incorporated in Singapore and a tax resident of Singapore for that Year of Assessment. (b) It has no more than 20 shareholders throughout the basis period relating to that Year of Assessment and all its shareholders are individuals throughout the basis period relating to that Year of Assessment; or there is at least one individual shareholder with a minimum of 10% shareholding. c) Its principal activity is not related to (i) investment holding, or (ii) property developer for sales, investment, and both.

2) Engage in TRIANGULAR or TETRAGONAL trade

The companies engaged in international transactions among two or more countries, for instance, the companies purchase goods from e.g. China, and then sell them to e.g. America or trade domestically, Malaysia. This is when the companies need a lower tax trading company (2) to act as the intermediary to issue invoice and packing list in order to strengthen their competitive power in the international or local market.
2. To consider a company as resident in Singapore, the control and management of the business must be exercised in Singapore. Though the term “control and management” is not clearly defined by authorities, a generally accepted consensus is that it refers to the policy level decision making at the level of Board of Directors.

3) Government Incentives

Overview of government incentives

Depending on your company’s business plans, you may consider various tax incentives and grants as follows:
Internationalisation
Incentives available
Benefits
International Headquarters (IHQ) Award
Concessionary corporate tax rates of 5% or 10% for companies that commit to anchor substantive HQ activities in Singapore to manage, coordinate and control regional business operations. The award is accompanied with the award of Development and Expansion Incentive governed by Singapore Economic Development Board (EDB).
Mergers & Acquisitions (M&A) Scheme
The acquiring company is entitled to the following benefits:
  • 25% of M&A allowance (capped at S$10 million) of the total acquisition value capped at S$40 million per YA.
  • Double Tax Deduction (DTD) on the transaction cost capped at S$100,000 incurred during the share acquisition process.
Double Tax Deduction (DTD) for Internationalisation Scheme
Enjoy up to 200% tax deduction on qualifying expenditure incurred on market expansion and investment development activities. The qualifying expenditures include:
  • Qualifying salary expenses incurred for employees posted overseas in an overseas entity.
  • Overseas business development trips and missions.
  • Overseas investment study trips and missions.
  • Overseas trade fairs.
  • Local trade fairs approved by Enterprise Singapore or STB.
Market Readiness Assistance (MRA) grant
Funding support of 50% of eligible costs, capped at S$100,000 per company per new market by Enterprise Singapore. The eligible costs for marketing activities including overseas market set-up, business development and market promotion.
Trading
Incentives available
Benefits
Global Trader Programme
A concessionary corporate tax rate of 5% or 10% for a renewable 3 or 5-year period on qualifying trading income granted by Enterprise Singapore, which includes income from physical trading, brokering of physical trades, derivative trading income, and income from structured commodity financing activities, treasury activities and advisory services in relation to mergers and acquisitions.
Manufacturing and services
Incentives Available
Benefits
Pioneer Incentive
Tax exemption on income from qualifying activities for a period of not exceeding 15 years, administered by Economic and Development Board (EDB).
Development & Expansion Incentive (DEI)
Reduced tax rate of 5% or 10% on incremental income from qualifying activities, limited to 5 years. The incentive is governed by Economic and Development Board (EDB).
Investment Allowance (IA)
Allowance of up to 100% (on top of normal capital allowance) on approved fixed capital expenditure. This incentive is administered by Economic and Development Board (EDB).
Integrated Investment Allowance (IIA)
Additional allowance on fixed capital expenditure incurred on qualifying productive equipment placed with an overseas company for an approved project. This scheme is administered by Economic and Development Board (EDB).
Land Intensification Allowance (LIA)
Initial allowance of 25% and annual allowance of 5% on qualifying capital expenditure incurred for the construction or renovation/extension of a qualifying building or structure. Annual allowances of 5% are granted until total allowance amounts to 100% of qualifying capital expenditure. Approvals for the incentive will be granted by the Economic Development Board (EDB).
Automation Support Package (under Enterprise Singapore)
  • Enterprise Development Grant (EDG)
  • Investment Allowance (IA)
  • Enhanced SME Equipment Loan
Grant support up to 70% of qualifying project costs such as equipment, training and consultancy.

Qualifying projects may be eligible for an IA of 100% on the amount of approved capital expenditure, net of grants. The approved capital expenditure is capped at S$10 million per project.

Under Enterprise Financing Scheme (EFS), qualifying SMEs may receive up to 70% government’s risk-share with participating financial institutions for qualifying projects. SMEs can apply for fixed asset loans of up to S$30 million. ことができる。
Financial and Treasury
Incentives available
Benefits
Finance & Treasury Centre (FTC) Incentive
Enjoy concessionary corporate tax rate of 8% for five years on income derived from qualifying services/ activities as well as withholding tax exemption on interest payments on loans from banks and approved network companies for FTC activities. This incentive is administered by Economic and Development Board (EDB).
Financial Sector Incentive (FSI)
Concessionary tax rate of 10% or 13.5% for licensed financial institutions, from large universal banks, fund managers to capital market players. This incentive is governed by Monetary Authority of Singapore (MAS).
Research and Development (R&D) and intellectual property (IP) management
Incentives available
Benefits
Research Incentive Scheme for Companies (RISC)

Co-funding to encourage and assist businesses companies in Singapore to conduct or expand their research and development (R&D) activities in science and technology. This scheme is administered by Economic and Development Board (EDB).

 

Supportable project costs include expenditure in the following:

  • Manpower cost (up to 50% support)
  • Equipment, materials, consumables and software (up to 30% support)
  • Singapore-based professional services (up to 30% support)
  • IPRs, e.g. licensing, royalties, technology acquisition (up to 30% support)
Intellectual Property Development Incentive (IDI)
Reduced tax rate of 5% or 10% on a percentage of qualifying IP income for an initial period of not exceeding 10 years, and may be further extended for a period or periods not exceeding ten years each. This incentive is administered by Economic and Development Board (EDB).
Approved Foreign Loan Incentive (AFL)
Reduced or nil withholding tax rate on interest payments on loans with minimum amount of S$20 million taken to purchase productive equipment. This incentive is administered by Economic and Development Board (EDB).
Approved royalties incentive (ARI)
Reduced or nil withholding tax rate on approved royalties, fees or contributions to research and development costs made to a non-tax resident.. This incentive is administered by Economic and Development Board (EDB).
Writing-down allowances for IP acquisition (S19B)
Automatic 5/10/15-year writing-down allowances on capital expenditure incurred for IPR acquisitions with legal and economic ownership. EDB’s approval is required if only economic ownership of IP rights is acquired.
Maritime, shipping and logistics
Incentives Available
Benefits
Maritime Sector Incentive (MSI) – Singapore Registry of Ships (MSI-SRS) and Approved International Shipping (MSI-AIS)
Tax exemption on qualifying shipping income from operating Singapore and foreign- flagged ships, provision of specified ship management services, and income from foreign exchange and risk management activities which are carried out in connection with or incidental to the operations of ships for either a 10-year renewable period; or a 5-year non-renewable period, with the option of graduating to the 10-year renewable award at the end of the 5-year period. This incentive is administered by Maritime and Port Authority of Singapore (MPA).
MSI – Shipping Related Support Services (MSI- SSS) Award
Concessionary tax rate of 10% on the incremental income derived from carrying out approved shipping-related support services for a 5-year renewable period. This incentive is administered by Maritime and Port Authority of Singapore (MPA).
  • Ship broking;
  • Forward freight agreement (FFA) trading;
  • Ship management;
  • Ship agency;
  • Freight forwarding and logistics services; and
  • Corporate services rendered to qualifying approved related parties who are carrying on business of shipping – related activities.
MSI – Maritime Leasing (MSI-ML) Award
Concessionary tax rate of 10% for up to 5 years on qualifying leasing or management income. This incentive is administered by Maritime and Port Authority of Singapore (MPA).
Maritime Innovation & Technology (MINT) Fund
To promotes and encourages upstream research, product and solution development relevant to the maritime industry in Singapore. This incentive is administered by Maritime and Port Authority of Singapore (MPA).

Grant of up to 70% of the total qualifying project costs (inclusive of input GST), comprising of manpower and equipment either engaged or acquired for the purposes of the project, and other operating expenditure incurred for the purposes of the project.

4) TAX EXEMPTION on Dividend declared from Singapore

Dividend declared out of the profit derived from Singapore Company and received in Malaysia is exempted from tax (3).

5) TAX TREATIES

Singapore has entered into Double Taxation Agreement (“DTA”) with 88 countries. Please refer to APPENDIX I.

6) AUDIT EXEMPTION of a Singapore Company

A company incorporated on or after 1 July 2015, if a private company that fulfils at least two of the following three quantitative criteria in each of the immediate past two financial years is exempted from audit (4) : (a) Total annual revenue of not more than SGD 10 million; (b) Total assets of not more than SGD 10 million; (c) Number of employee of not more than 50.
3. Section 127 (1) – Exemptions from tax. Any income specified in Part 1 of Schedule 6 shall be exempt from tax. Part 1 Schedule 6, para 28 (1), Income of any person, other than a resident company carrying on the business of banking, insurance or sea or air transport, for the basis year of assessment derived from sources outside Malaysia and received in Malaysia Part 1 schedule 6, para 28(1), exempt income of any person derive from sources outside Malaysia and received in Malaysia (See also exception).

4. Existing safeguards will however be retained, such as requiring all companies to keep proper accounting records, and empowering shareholders with at least 5% voting rights to require a company to prepare audited accounts.

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Mandatory Sustainability Reporting

Mandatory Sustainability Reporting

Mandatory Sustainability Reporting

Stakeholders, including investors, regulators, customers, etc., are increasing focus on sustainability performance. How organizations translates their sustainability practices into positive social and environmental impacts. Stakeholders eye for improved operating efficiency, natural resource stewardship, community relations and more.

MANDATORY SUSTAINABILITY REPORTING REQUIREMENT

a. Bursa Malaysia Sustainability Reporting Requirement

Enhanced Sustainability Reporting Requirements
Timeline (Main Market)
Timeline (Ace Market)
  • 9 common sustainability matters and indicators
    Common sustainability indicators data and targets (at least three financial years)*
  • Statement of Assurance (internal or independent)
For financial year ending on or after December 31, 2023
For financial year ending on or after December 31, 2025
  • 9 + 2 common sustainability matters and indicators (waste and emissions management)
  • Transition plan disclosures (only for Ace Market Registrants)
For financial year ending on or after December 31, 2024
For financial year ending on or after December 31, 2026
  • Prescribed sustainability information
N/A
For financial year ending on or after December 31, 2024
TCFD-aligned climate-related disclosures
  • Cover all recommended disclosures under the four TCFD pillars i.e., Governance, Strategy, Risk Management, and Metrics and Targets for the FYE on or after 31 December 2025 onwards.

    An incremental approach introduced for ‘specified elements’4, where PLCs may disclose their progress or status towards meeting the full disclosure of the specified elements for a period of two years.
For financial year ending on or after December 31, 2025
N/A
  • Full TCFD-aligned disclosures to be achieved for the FYE on or after 31 December 2027
For financial year ending on or after December 31, 2027
N/A

b. Singapore Stock Exchange Sustainability Reporting Requirement

Scoped Entities
Timeline
ESG Funds (required by the Monetary Authority of Singapore (MAS) per Circular No. CFC 02/2022)
Effectivity date 1 January 2023
All listed issuers to issue a complete sustainability report
For financial year ending on or after December 31, 2017
All listed issuers to include TCFD recommendations on their sustainability reports:
  • Climate reporting is mandatory for all issuers on a ‘comply or explain’ basis.
  • Climate reporting is mandatory for issuers in (a) financial industry; (b) agriculture, food and forest products industry; and (c) energy industry. For other issuers, climate reporting on a ‘comply or explain’ basis.
  • Climate reporting is mandatory for issuers in (a) financial industry; (b) agriculture, food and forest products industry; (c) energy industry; (d) materials and buildings industry; and (e) transportation industry.

    For other issuers, climate reporting on a ‘comply or explain’ basis.
  • For financial year ending on or after December 31, 2022
  • For financial year ending on or after December 31, 2023
  • For financial year ending on or after December 31, 2024

WHAT WE DO

More and more stock exchanges recognised the important of Sustainability Reporting and require all the listed companies to disclose their ESG performance as non-financial performance reporting to satisfy the greater demand of transparency from stakeholders.

Our ESG experts at ShineWing TY TEOH can work with you on the following sustainability programs:

  1. Training and Education
    Train your Board, Management, and Employees about the ins and outs of ESG reporting globally and within your region. We provide
    education coverage on these key matters:
    1. Introduction to ESG
    2. ESG and Sustainability Reporting
      1. Existing and Upcoming Regulations
      2. Corporate Governance
      3. The Role of the Board of Directors, Management, and Operating Departments
      4. Establishing and Communicating Policies
      5. Benefits and Remuneration Disclosures
      6. ESG Preparedness
      7. Dealing with GHG emissions
      8. Your Value Chain and their impact
      9. Employee and Customer Considerations
    3. Accounting and Reporting ESG-related assets and transactions
    4. Diversity, Equity, and Inclusion
  2. ESG Risk and Opportunities Assessment
    Revisit existing process, procedures, and controls to identify risks and opportunities to help management address risks and seize opportunities aligned with emerging market trends particularly on environment, health & safety.
  3. Policy advisory and creation
    In compliance with sustainability regulations, identify needs on policies to establish and assist management in preparing and executing the relates policies and controls.
  4. Stakeholder engagement
    Identify, plan, develop and implement required engagement mechanisms with your stakeholders.
  5. Sustainability reporting and disclosure
    Prepare regulatory compliant sustainability reports that meets stakeholder needs and expectations.
  6. Accounting and reporting ESG-related assets and transactions
    Account and report ESG related transactions including Carbon Credits, Renewable Energy Credits, Carbon Offsets, Investments on ESG-linked funds/securities, etc.
  7. Report assurance
    Provide assurance on your sustainability transactions and reports.

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Featured Ideas & Insights Publications

Japan Desk ジャパンデスク

Japan Desk-Cover

JAPAN DESK

ジャパンデスク

当事務所のジャパンデスクは、長年マレーシアに在住し、日マ双 方のビジネス環境、文化、習慣を熟知したディレクターが担当して います。包括的な業界知識と、クライアントサービス経験を活か し、ローカルのプロフェッショナルチームと連携し、日系企業の皆 様にきめ細かなサービスをご提供しています。そして法令順守、業 務課題の解決、ビジネス機会の抽出と最大化、効率の向上、その成 果としての事業目標の達成に貢献いたします。

What is Japan Desk?

A Japan desk is a specialized unit within an accounting firm, financial institution, or multinational corporation that focuses on providing services tailored to clients with interests or operations in Japan. Japan desk is dedicated to addressing the unique accounting, tax, regulatory, and cultural considerations associated with doing business in Japan.
Japan has been consistently remained as one of top investors in the South East Asia region, and recognising the distinct needs of Japanese businesses, our Japan Desk is led by native Japanese who is fluent in Japanese-English and has stayed locally for a number of years, thus he understand both local and Japanese business environment, culture and customs well and is able to leverage our extensive industry knowledge and client services experiences and lead our local professional teams to work closely with Japanese companies to meet the local statutory compliances, resolve business issues, identify and maximum business opportunities, improve efficiency and eventually to achieve your business goals.
日本は、東南アジア地域において、常にトップインベスターの地位を占めています。そして、日本ビジネス特有のニーズには個別対応が必要な ことから、当事務所では日本語と英語に熟達し、かつマレーシアにて長期の実務経験を有する、日本人コンサルタントを配置しています。そし て、日本とマレーシア双方のビジネス環境、文化的特性、商習慣に対する十分な理解のもと、広範囲な業界知識と業務経験を活かし、当事務所 のローカルスタッフと連携し、日本企業向けにプロフェッショナルサービスを提供しています。そのスコープには、法令順守、業務課題の解決、 ビジネス機会の抽出と最大化、効率性改善、そしてその成果としての事業目標の達成に貢献いたします。

In addition, we organises Japanese seminars and publishes Japanese publications and newsletters regularly to ensure Japanese companies stay tune with the updated information which is essential to them to make any business decision promptly.
さらに当事務所では、日本語でのビジネスセミナーや書籍・ビジネスレターなどの定期的な発行を通して、日本企業に最新情報をお届けするこ とで、迅速かつ臨機応変な意思決定をサポートしています。

What We Do 当事務所のサービス

Our Japan Desk provides a diverse spectrum of business solutions and consulting services to Japanese client including:
ジャパンデスクでは、多岐に渡るビジネスソリューションとコンサルティングサービスを提供しています。

Our Japan Desk Services

Audit and Assurance
監査・保証業務(アシュアランス)

Audit services for Japanese companies or subsidiaries of multinational corporations operating in Japan. This involves financial statement audits, internal control assessments, and compliance reviews to ensure adherence to Japanese accounting standards and regulatory requirements.

Offshore Advisory
オフショアアドバイス

Offering guidance and support on offshore financial strategies, structures, and investments. This includes advising on setting up offshore entities, selecting jurisdictions, navigating regulatory requirements, and optimizing tax efficiency. Offshore advisory services help company capitalize on international opportunities while ensuring compliance with relevant laws and regulations.

BPO & Business Advisory
アウトソーシング(BPO)・ビジネスアドバイス

Providing strategic advice and consultancy services to clients seeking to optimize their business performance and achieve their objectives in the Japanese market. This includes conducting market analysis, identifying growth opportunities, developing market entry strategies, and offering insights on industry trends and competitive dynamics. Business advisory services aim to help clients make informed decisions, navigate challenges, and capitalize on opportunities for sustainable growth and success in Japan.

Digital Transformation & Data Analytic
デジタルトランスフォーメーション・データアナリティクス

Providing strategic guidance and practical support to clients in Japan to navigate digital transformation initiatives and harness the power of data analytics. This includes helping companies adopt cutting-edge technologies, such as AI, IoT, and cloud computing, to optimize operations, enhance customer experiences, and gain competitive advantages.

Family Office & Private Client Services
ファミリーオフィス・プライベートサービス

provide personalized financial management, tax planning, estate planning, and lifestyle support for affluent individuals and families in Japan, helping them preserve and grow their wealth while addressing their specific needs and goals.

Financial and Transactions Advisory
財務、買収合併アドバイス

Offering expert guidance and support to clients on financial matters related to transactions and investments in Japan. This includes services such as mergers and acquisitions (M&A) advisory, transaction structuring, valuation, due diligence, financial modeling, and deal negotiation. The team leverages its in-depth knowledge of the Japanese market and regulatory environment to help clients make informed financial decisions and achieve their strategic objectives.

Market Entry Advisory
市場参入アドバイス

Offering specialized guidance and support to clients looking to enter or expand their presence in the Japanese market. This involves providing strategic analysis, market research, and feasibility studies to assess the viability of market entry strategies. Japan desk assists clients in understanding the regulatory environment, cultural nuances, competitive landscape, and consumer preferences in Japan, thereby helping them develop tailored market entry plans and mitigate risks associated with market entry.

Migration Advisory
移転アドバイス

Providing strategic guidance and actionable recommendations to clients on how to reduce, manage, or eliminate risks identified through risk assessments or internal control reviews. This involves developing customized plans and implementing measures to minimize the likelihood or impact of adverse events on the  business operations and objectives.

Risk & Governance Advisory
リスク・ガバナンスアドバイス

Offering specialized expertise and tailored advice to clients operating in Japan on matters related to risk management and corporate governance. This includes providing guidance on identifying, assessing, and mitigating risks specific to the Japanese market, as well as assisting with the development and implementation of robust governance frameworks to enhance transparency, accountability, and compliance with regulatory requirements.

Tax & GST Advisory
税務・GST税アドバイス

Provides tailored solutions to address clients’ specific tax needs, such as corporate income tax, consumption tax, transfer pricing, withholding tax, and tax implications of cross-border transactions.

Transfer Pricing Advisory
移転価格アドバイス

Transfer Pricing Advisory in a Japan desk involves providing specialized guidance and support to clients on managing transfer pricing issues related to their operations in Japan. This includes helping clients navigate Japan’s transfer pricing regulations, ensuring compliance with arm’s length principles, and optimizing intercompany pricing arrangements to mitigate tax risks. The advisory service includes strategic planning, documentation preparation, benchmarking analysis, dispute resolution support, and ongoing compliance monitoring to help clients achieve tax efficiency and minimize transfer pricing-related challenges in their Japanese operations.

US Desk
アメリカデスクサービス

Identification and assessment of risks associated with operating in the US market, and development of strategies to mitigate these risks. This includes risk assessments, internal control reviews, and implementation of risk management policies and procedures tailored to US operations.

Valuation Advisory
事業価値評価アドバイス

Conducting independent valuations, fairness opinions, and financial analysis to support clients in making informed decisions regarding mergers and acquisitions, financial reporting, tax planning, dispute resolution, and strategic investments. The Japan desk’s valuation experts possess in-depth knowledge of Japanese accounting standards, regulatory requirements, market trends, and industry dynamics, enabling them to deliver accurate and reliable valuation assessments tailored to the unique needs and circumstances of clients operating in Japan.

Our Credentials

The Institute of Internal Auditors Malaysia

Corporate Member of TheInstitute of Internal Auditors (IIA) 

Public Company Accounting Oversight Board

Approved and registered under Accounting Oversight Board (PCAOB)

Labuan Financial Services Authority

Approved Auditor of Labuan  Financial Services Authority (Labuan FSA)

Internal Accounting Bulletin

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

Why Choose Our Japan Desk Services?

Tailored Expertise for Japan Market Entry

Benefit from specialized expertise in Japanese accounting, taxation, and regulations, ensuring a smooth market entry tailored to Japan’s unique business environment.

Access to Key Networks and Partnerships

Gain access to our extensive networks and partnerships in Japan, accelerating your expansion efforts and opening doors to new opportunities.

Comprehensive Risk Management Solutions

Mitigate risks associated with Japan market entry, including regulatory compliance and cultural nuances, with our tailored risk management solutions.

Streamlined Service Delivery and Support

Enjoy streamlined access to a wide range of specialized services through our dedicated Japan Desk team, ensuring efficiency and convenience in meeting your business needs.

Frequently Asked Questions (FAQ) about Japan Desk Services

Japan Desk is a specialized service unit designed to support Japanese companies and individuals in Malaysia, offering a range of services tailored to their specific needs.

Japan Desk services typically include business consulting, market entry support, legal and regulatory advice, tax and accounting services, human resources support, translation and interpretation, and cultural training.

Japanese businesses looking to expand or establish operations in Malaysia, as well as Japanese expatriates and their families needing assistance with relocation and settling in.

Japan Desk provides market research, feasibility studies, entry strategy development, assistance with regulatory compliance, and introductions to local business networks and partners.

Japan Desk provides recruitment support, HR policy development, employee training programs, and advice on labor laws and employment practices in Malaysia.

Japan Desk staff typically speak Japanese, English, and Malay, ensuring effective communication and support for Japanese clients in Malaysia.

The benefits include expert guidance tailored to Japanese businesses, seamless integration into the Malaysian market, enhanced cultural understanding, and comprehensive support for all business needs.

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US Desk

US Desk Featured

US DESK

Thinking of going listed aboard on US Stock Exchange for either a better valuation and liquidity or gateway to international market to leverage global growth?
Thinking of going listed aboard on US Stock Exchange for either a better valuation and liquidity or gateway to international market to leverage global growth?

Our US Desk has been setup to support and facilitate those Asia-based companies interested in going listed aboard on US Stock Exchange.

Our US Desk is well connected with our member firms or strategic partners throughout the US to act as a single point of contact to manage your cross-border projects in direct coordination with your team and assist your IPO path to success in US.

What We Do

Our expertise include:
  • US GAAP Reporting including the Preparation of SEC Form, Quarterly Announcement and Annual Financial Statement in accordance with
    US GAAP Financial Reporting Framework;
  • Identifying Key Differences Between IFRS and US GAAP and Converting IFRS to US GAAP and Assisting in the Calculation of Necessary
    Adjustments;
  • Preparing Interim or Annual US GAAP and SEC Disclosure Checklist and Management Analysis and Discussions;
  • US GAAP Technical Accounting Memorandum on Complex and Unusual Accounting Transactions;
  • SOX (Sarbanes Oxley) Reporting including the setting up of COSO Framework to Address Major Elements of Internal Controls such as
    the Control Environment, Risk Assessment, Control Activities, Information/Communication, and Monitoring Activities to meet the
    requirements of 404a – Management’s Responsibility for Establishing and Maintaining Adequate Internal Control For Financial Reporting
    or 404b – Independent Auditor’s Responsibility for Attesting to and Reporting on Management’s Assessment of Internal Control.
  • Introducing and Pitching a Target Companies to Potentially Match with a Right SPACs (Special Purpose Acquisitions Companies) for
    Acquisition and Merger.
  • American National Standard Business Valuation by Certified Valuation Analyst (CVA) of National Association of Certified Valuators and
    Analysts (NACVA) for the purpose of Financial Reporting, Initial Public Offering (IPO), Mergers & Acquisitions (M&A) and SPACs.

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