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Featured Ideas & Insights Newsletter

Japan Desk ジャパンデスク

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。
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。

Audit and Assurance
監査・保証業務(アシュアランス)

Offshore Advisory
オフショアアドバイス

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

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

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

Tax & GST Advisory
税務・GST税アドバイス

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

Transfer Pricing Advisory
移転価格アドバイス

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

US Desk
アメリカデスクサービス

Market Entry Advisory
市場参入アドバイス

Valuation Advisory
事業価値評価アドバイス

Migration Advisory
移転アドバイス

Categories
Featured Ideas & Insights Newsletter

US Desk

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?

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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Featured Ideas & Insights

Why Labuan?

Why Labuan?

TAX BENEFITS

1. Corporate Tax 3%

The Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulation 2021 has been gazetted on 22 November 2021
and are deemed to have come into operation on 1 January 2019,a Labuan company carrying on a Labuan business activity is only subject
to tax at the rate of 3% of net profit PROVIDED that it has fulfilled the requirement of the number of full time employees and an amount of
annual operating expenditure as specified in the Schedule below:

Labuan Company Carrying on a Labuan Business Activity
Minimum Number of Full Time Employees in Labuan
Minimum Amount of Annual Operating Expenditure in Labuan (RM)
Labuan Insurer, Labuan reinsurer, Labuan takaful operator or Labuan retakaful operator

3

200,000

Labuan underwriting manager or Labuan underwriting takaful manage
4

100,000

Labuan insurance manager or Labuan takaful manager
4
100,000
Labuan insurance broker or Labuan takaful broker

2

100,000

Labuan captive insurer or Labuan captive takaful
4
100,000
Labuan International Commodity Trading Company

3

3,000,000
Labuan captive insurer or Labuan captive takaful –
  1. Labuan first party captive insurer or Labuan first party captive takaful; or
  2. Labuan third party captive insurer or Labuan third party captive takaful.

2

2

100,000

100,000

Labuan bank, Labuan investment bank, Labuan Islamic bank or Labuan Islamic investment bank

3

200,000

Labuan trust company

3

120,000
Labuan leasing company or Labuan Islamic leasing company
  1. 10 or less related Labuan leasing companies or Labuan Islamic leasing companies;
  2. 11 to 20 related Labuan leasing companies or Labuan Islamic leasing companies;
  3. 21 to 30 related leasing companies or Labuan Islamic leasing companies;
  4. More than 30 related Labuan leasing companies or Labuan Islamic leasing companies

2 per group


3 per group

 

4 per group


Increase of 1 employee for every additional 10 related companies or Labuan Islamic leasing companies;

100,000 for each Labuan leasing company or Labuan Islamic leasing companies;
100,000 for each Labuan leasing company or Labuan Islamic leasing companies;
100,000 for each Labuan leasing company or Labuan Islamic leasing companies;
100,000 for each Labuan leasing company or Labuan Islamic leasing companies;

Labuan credit token company or Labuan Islamic credit token company

2

100,000
Labuan development finance company or Labuan Islamic development finance company

2

100,000

Labuan building credit company or Labuan Islamic factoring company

2

100,000
Labuan factoring company or Labuan Islamic factoring company

2

100,000

Labuan money broker or Labuan Islamic factoring company

2

100,000
Labuan fund manager

2

100,000

Labuan securities license or Labuan Islamic securities license

2

100,000
Labuan fund administrator

2

100,000

Labuan company management
  • provision of treasury processing services and such other services as defined in Section 129 of the Labuan Financial Services and Securities Act 2010.

2

100,000

Labuan International Financial Exchange

2

120,000

Self-regulatory organisation or Islamic self-regulation organisation

2

120,000
Labuan entity that undertakes pure equity holding activities
  1. Ladministrative services
    – services pertaining to employee management, payroll management, property management, human resource management, financial planning, contract or subcontract management, facilities management or proposal management.*
  2. Laccounting services
    – services pertaining to recording, analysing, summarizing or classifying financial, commercial and business transactions and information of a person or business.*
  3. legal services
    i. conveyancing services*
    ii. legal advisory services*
    iii. litigation or legal representation services in any proceedings before any court, tribunal or other authority
    iv. legal dispute resolution services including alternative dispute resolution.
  4. backroom processing services
    – services relating to settlements of receivables and payables, clearance, record maintenance, regulatory compliance or information technology (IT) related services which are usually performed by administration and support personnel who do not deal directly with client.
  5. Payroll services
    – services relating to
    i. processing, calculation, payment and deduction of remuneration, benefits, tax and statutory payment
    ii. issuance of payslip and tax statement
  6. talent management services
    – services relating to the provision of human resource services to attract, onboard, develop, motivate, and retain employees.*
  7. agency services
    – services relating to the provision of specific services on behalf of another group, business, or person pursuant to an agency agreement between the agent and its client.*
  8. insolvency related services
    – services related to administering company liquidations or winding up or personal bankruptcy.*
  9. management services other than Labuan company management under item 17
    – organization and coordination of activities of a business in order to provide services to the clients and usually consist of organizing, supervising, monitoring, planning,controlling and directing business’s resources such as human, financial and technology*

*As per Frequently-Asked Questions (FAQ) on Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulations 2021 [P.U. (A) 423/2021] issued by Labuan Financial Services Authority (LOFSA) dated 14 December 2021.*

2

50,000

Labuan entity that undertakes investment holding activities other than pure equity holding activities

1

20,000

Labuan entity that undertakes pure equity holding activities
Exempted under the Labuan Business Activity Tax (Exemption) Order 2020 [P.U (A) 177/2020]

20,000

Management And Control Requirement For Labuan Entity That Undertakes Pure Equity Holding Activities

Regulation 3, The Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulation 2021 which is deemed to have come into operation on 1 January 2021, requires the above mentioned company to comply with the following:
  1. meeting of the board of directors is convened in Labuan at least once a year;
  2. the registered office of the Labuan entity shall be situated in Labuan;
  3. the secretary of the Labuan entity appointed under the Labuan Companies Act 1990 shall be resident in Labuan;
  4. the accounting and business records including the minutes of meeting of the Labuan entity’s board of directors shall be kept in Labuan;

Income derived from intellectual property rights is subject to tax at the rate of 17% or 24% under Income Tax Acts 1967(“ITA”)

With effect from 1 Jan 2019, under Income Tax (Deductions Not Allowed for Payment Made to Labuan Company by Resident) Rules 2018 (Amendment) 2020, the following type of payments made to a Labuan Entity by a company resident in Malaysia are not entitled to a tax deduction:

Type of payment
Minimum Amount of Annual Operating Expenditure in Labuan (RM)
Interest payment
25%
Lease rental
25%
Other payments
97%

2) 0% ON SERVICE TAX AND 6 % ON IMPORTED SERVICE

No service tax shall be charged on any taxable service provided within or between Special Areas and Designated Areas unless on the taxable services prescribed in the Service Tax (Imposition of Tax for Taxable Service in Respect of Designated Areas and Special Areas) Order 2018.

3) 0% ON WITHHOLDING TAX

There is no withholding tax on dividends paid by a Labuan Company in respect of dividends distributed out of income derived from Labuan business activities or income exempt from income tax. Interest, royalties, lease rental, technical fee and management fees paid to a non- resident are not subject to withholding tax.

4) 0% ON STAMP DUTY

This may include but not limited to transfer of share, etc.

5) 100% EXEMPTION OF DIRECTOR’S FEE RECEIVED BY NON-CITIZENS INDIVIDUAL

6) DOUBLE TAXATION AGREEMENT (DTA) WITH MORE THAN 70 COUNTRIES

Labuan Company enjoys the benefits of more double taxation treaties than any other offshore company as it almost enjoys same full double taxation benefit as Malaysia company except for eleven (11) of those 74 countries, and it can enjoy full treaty benefit even with those eleven (11) countries by incorporating a Malaysian domestic subsidiary company.

7) LIBERAL LABUAN EXCHANGE CONTROL ENVIRONMENT – FREE FLOW OF FUNDS

8) INVESTMENT PROTECTION AGREEMENT (IGA) WITH MORE THAN 50 COUNTRIES

9) THE CONFIDENTIALITY OF COMPANY, SHAREHOLDER AND DIRECTORS’ INFORMATION IS ENSURED

10) LABUAN COMPANY VS BVI COMPANY

Labuan Company
BVI Company
Labuan is low-tax jurisdiction country.
BVI is tax-free jurisdiction country.

Certain home country may impose the income tax law on incomes deriving from offshore, if they have not been taxed offshore, particularly, when they are remitted back, this may appy to BVI Co but not Labuan Co as it pays minimum tax.

Labuan Co enjoys more than 70 countries’ double tax treaties (DTAs).

BVI enjoys only 2 countries’ (Japan and Switzerland) double tax treaties (DTAs), and these treaties are not used in practise.

Dividend declared from Labuan Co to Malaysia is free of tax.

Dividend declared from BVI co may subject to income tax.

Note: If the company is Non-Malaysian Co, the tax exemption will depend on each home country’s law jurisdiction and its double tax treaties with Malaysia.

No withholding tax on interest payment.

BVI has applied the European Union (EU) Savings Directive since 1 July 2005. A withholding tax (initially 15%, rising to 20% from 1 July 2008) has been applied to interest payments to natural persons resident within the EU.

Labuan has its registered auditor under its jurisdiction. The income tax payable is allowed to base on the audited profit, the source of income is cleared for reinvestment or dividend purpose, once it is paid.

BVI has no registered auditor under its jurisdiction.

ILLUSTRATIONS ON LABUAN COMPANY STRUCTURE

1) Labuan Leasing Company or Labuan Islamic Leasing Company

Suitable Industries

  • Vessel, aircraft, shipping, oil & gas, high value assets co.

Tax Advantages

  • Income tax is only 3% of net profit
  • Dividend income received by Labuan Co is exempted from tax.
  • No withholding tax on dividend declared And lease rental made by Malaysian subsidiaries or 3rd Party Malaysian Co.

2) Investment Holding Company

Suitable Industries :

  • Investment holding or offshore investment.

Tax Advantages

  • Dividend income received by Malaysian Parent Co(1)  or Labuan Co is exempted from tax.
  • No withholding tax on dividend declared by Labuan Co to either Malaysian or Foreign Parent Co.
  • No withholding tax on interest charged by Malaysian or Foreign Parent Co to Labuan Co.
  • No Capital Gain Tax and stamp duty for the transfer of shares in Labuan Co, e.g. dispose the investment in Foreign Manufacturing Co by selling Labuan Co.
  • Enjoys double tax treaties with more than 70 countries via a Labuan Co.

3) Captive Insurance

Suitable Industries :

  • Captive Insurance

Tax Advantages

Income tax is only 3% of net profit

  • Dividend income received by Malaysian Parent Co(1) is exempted from tax.
  • No withholding tax on dividend declared by Labuan Captive Insurance Co.
  • Enjoys double tax treaties with more than 70 countries via a Labuan Co.

4) Offshore Financing

Suitable Industries :

  • Fund managers

Tax Advantages

  • Income from investment is exempted from tax for Labuan Co.
  • Dividend from Labuan Co is exempted from tax.
  • No withholding tax either on dividend declared by or interest charged from Labuan Co to Labuan Funds.
  • Distribution from Labuan Funds to investors is not subject to withholding tax.
  • Enjoys double tax treaties with more than 70 countries via a Labuan Co.

Other Advantages

  • Lower cost of funds.
  • Liberal Labuan exchange control environment.
  • Debt instruments of Labuan Co may be listed.
Investment Funds 投资基金
Islamic Financing 伊斯兰融资
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Featured Ideas & Insights

Mandatory Sustainability Reporting

Mandatory Sustainability Reporting

MANDATORY SUSTAINABILITY REPORTING REQUIREMENT

1. Singapore Stock Exchange Sustainability Reporting Requirement

Annual Report issued for financial year ended on Financial Year Ended 2017。

2. Bursa Malaysia Sustainability Reporting Requirement

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.

Narrative Statement (i)

Detailed Disclosure (ii)

Annual reports issued for financial years ending on or after.
Main Market listed issuers with market capitalisation as at 31 Dec 2015:
≥ RM 2 billion
31 Dec 2016
31 Dec 2016
RM1 – 2 billion

31 Dec 2017

31 Dec 2017

≤ RM 1 billion

31 Dec 2017

31 Dec 2018

ACE Market:

All listed corporations
31 Dec 2018

N/A

Notes:

  • Narrative statement of the management of material economic, environmental and social risk and opportunities
  • Detailed disclosure includes the governance structure, scope of sustainability statement and the management of EES risks and opportunities

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. We can assist you in developing your ESG reporting. Our key services include: –

 

  1. Stakeholder engagement
  2. Sustainability reporting and disclosure
  3. Environment, health & safety
  4. Policy advisory
  5. Report assurance

OUR SELECTED TRACK RECORDS AND TEAM EXPERIENCES

RGT Berhad
Harbour-Link Group
SDS Group Berhad
Malaysia Steel Works (KL) Bhd
Engtex Group Berhad
ARB Berhad
SCGM Berhad
KPS Consortium Berhad
Bonia Corporation Berhad
Sin Heng Chan (Malaya) Berhad
KSL Holdings Berhad
PCCS Group Berhad
Inta Bina Group Berhad
Perusahaan Sadur Timah Malaysia (Perstima) Berhad
K. Seng Seng Corporation Berhad
Perak Transit Berhad
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Malaysia Principal Hub Tax Incentive

MALAYSIA PRINCIPAL HUB TAX INCENTIVE

Principal Hub is a locally incorporated company that uses Malaysia as a base for conducting its regional or global businesses and operations to manage, control, and support its key functions including management of risks, decision making, strategic business activities, trading, finance, management and human resource.

1. Overview Of The Incentive

An approved Principal Hub company is eligible to enjoy the following concessionary corporate income tax rates on income derived from qualifying activities:
Category
Concessionary Corporate Income Tax Rate
Blocks (Years)

Tier 2

Tier 3
A. New Company
Tier 1 : 0%
Tier 2 : 5%
5 (+5)
Trading and services income derived from qualifying activities
Refer to Appendix A
B. Existing Company (Approved OHQ/IPC/RDC with or without incentive)
10% on the total statutory income
5
Trading and services income derived from qualifying activities
Refer to Appendix B
C. Existing companies (Existing Manufacturing / Services Companies)
10% on the total statutory income
5
Trading and services income derived from qualifying activities
Refer to Appendix C
Royalties and other income derived from Intellectual Property Rights (IPRs) will be excluded from this incentive.

2. Minimum Requirements

  • Local incorporation under the Companies Act 2016 and resident in Malaysia.
  • No local equity/ownership condition.
  • Paid-up capital of more than RM2.5 million.
  • Minimum annual sales of RM500 million (Additional requirement for companies applying for tax exemption on trading income).
  • Serve and control a minimum number of network companies1.
1 Network companies defined as related companies or an entity within a same group including subsidiary, branches and joint venture; or non-related companies have contractual agreement with applicant or applicant’s ultimate company in regards with applicant’s business and supply chain for at least 3 years.

3. List Of Qualifying Services

Strategic Services
Business Services
Shared Services
a. Regional P&L/Business Unit Management
b. Strategic Business Planning and Corporate Development
c. Corporate Finance Advisory Services
d. Brand Management
e. IP Management
f. Senior-level Talent Acquisition and Management
a. Bid and Tender Management
b. Treasury and Fund Management
c. Research, Development & Innovation1
d. Project Management
e. Sales and Marketing
f. Business Development
g. Technical Support and Consultancy
h. Information Management and Processing
i. Economic/ Investment Research Analysis
j. Strategic Sourcing, Procurement and Distribution
k. Logistics Services
a. Corporate Training and Human Resource Management
b. Finance & Accounting (Transactions, Internal Audit)

4. Requirement

  • To hire higher and diverse set of managerial/technical/professional skills such as management, analytics, communication, problem-solving and proficiency in information technology with a minimum salary of RM5,000 and RM25,000 respectively.
  • To provide structured internship and training programs approved by Talent Corporation Malaysia for Malaysians.

5. Facilities Accorded To Principal Hub

  • Customs duty exemption when bringing raw materials, components, or finished products into free industrial zones, licensed manufacturing warehouse, free commercial zones and bonded warehouses for production or re-packing, cargo consolidation and integration before distribution to its final consumers for goods-based companies.
  • No local equity/ownership requirements.
  • Expatriate post based on requirements of business plan subject to current policy of expatriate.
  • Allowed to acquire foreign professional services when locally-owned services are not available.
  • Freedom to acquire fixed assets for the purpose of carrying out operations.
  • Foreign Exchange Administration flexibilities.

Eligibility Criteria For Principal Hub 2.0

Category - I. New Company - Manufacturing/Services Company*

2-tier Incentive
Tier 2

Tier 1

Blocks
5
+5
5

+5

Tax rate
5%
+5
5%
5%
High Value Jobs with monthly salary of at least RM5,000.00

High Value Jobs
Jobs that require higher and more diverse set of managerial/ technical/ professional skills such as management, analytics, communication, problem-solving, and proficiency in information technology
30
** PH Base Commitme nt + 20%
50
** PH Base Commitment + 20%
At least 50% of the high value jobs must be filled up by Malaysians
** PH Base Commitme nt + 20%

Including key positions
– Monthly salary of at least RM25,000.00
4
** PH Base Commitme nt + 20%
5
Annual Operating Expenditure
RM5 mil
** PH Base Commitme nt + 30%
RM10 mil
** PH Base Commitme nt + 30%
Qualifying Services
Regional P&L/Business Unit Management, Strategic Business Planning & Corporate Development + 2
Minimum Serving/Business Control of No. of Network Companies
10
(Including 3 Related Companies)
10
(Including 3 Related Companies)
15
(Including 4 Related Companies)
15
(Including 4 Related Companies)

Use of Local Ancillary Services

Local Financial Institution Services (including finance and treasury), logistics, legal and arbitration services, finance and treasury services)
Trading of Goods Annual Sales Turnover
(Additional requirement for companies applying for tax exemption on trading income)
RM500 million
  • PH company upon its approval must comply with the stipulated conditions during the exemption period.
  • Where in any year of assessment of the exempted period, the PH company fails to comply with the stipulated conditions, the PH company may not enjoy the exemption on statutory income for that year of assessment.
** PH Base Commitment: To use commitment from end of Year 5 (Block 1).

Concessionary Tax Rate of 10%

Category - II. Existing Companies approved IPC, RDC, OHQ with or without incentive*

Criteria
Details
High Value Jobs with monthly salary of at least RM5,000.00

High Value Jobs
Jobs that require higher and more diverse set of managerial/ technical/ professional skills such as management, analytics, communication, problem- solving, and proficiency in information technology

At least 50% of the high value jobs must be filled up by Malaysians

Including 5 key positions
– Monthly salary of at least RM25,000.00
Approved without incentive:
Existing number of high value jobs + 30%

Approved with incentive:
Total 60 high value jobs or existing number of high value jobs + 20%, whichever is higher
Annual Operating Expenditure
Approved without incentive:
RM10 million or average operating expenditure for the past 3 years + 30% whichever is higher

Approved with incentive:
Annual operating expenditure of RM13 million or average operating expenditure for the past 3 years + 20% whichever is higher
Qualifying Services
Approved without incentive:
Regional P&L/ Business Unit Management, Strategic Business Planning & Corporate Development + 2

Approved with incentive:
Regional P&L/ Business Unit Management, Strategic Business Planning & Corporate Development + 3
Minimum Serving/Business Control of No. of Network Companies
Approved without incentive:
10 (Including 4 Related Companies)

Approved with incentive:
15 (Including 5 Related Companies)
Use of local Ancillary Services
Local Financial Institution Services (including finance and treasury), logistics, legal and arbitration services, finance and treasury services)
Trading of Goods Annual Sales Turnover
(Additional requirement for companies applying for tax exemption on trading income)
Average sales turnover for the past 3 years or RM500 million whichever is higher
Structured Internship Programmes/ equivalent Training Schemes introduced by the Government
Approved without incentive:
Conduct Structured Internship Programmes / equivalent Training Schemes to training at least one (1) graduate every year

Approved with incentive:
Conduct Structured Internship Programmes / equivalent Training Schemes to train at least two (2) graduates every year
Structured Training Programmes
Approved without incentive:
At least three (3) local workers to undergo structured training programs for upgrading skills in related fields during incentive period.

Approved with incentive: At least 20% of local workforce from the entire workforce to undergo structured training programs for upgrading of skills in related qualifying services during incentive period.
  • PH company upon its approval must comply with the stipulated conditions during the exemption period.
  • Where in any year of assessment of the exempted period, the PH company fails to comply with the stipulated conditions, the PH company may not enjoy the exemption on statutory income for that year of assessment.

Concessionary Tax Rate of 10%

Category - III. Existing Manufacturing/Services Company*

Blocks
5
High Value Jobs with monthly salary of at least RM5,000.00

High Value Jobs
Jobs that require higher and more diverse set of managerial/ technical/ professional skills such as management, analytics, communication, problem- solving, and proficiency in information technology

At least 50% of the high value jobs must be filled up by Malaysians

Including 5 key positions
– Monthly salary of at least RM25,000.00
Total 30 high value jobs or existing number of high value jobs + 30%, whichever is higher
Annual Operating Expenditure
Annual operating expenditure of RM10 million or average operating expenditure for the past 3 years + 30% whichever is higher
Qualifying Services
Regional P&L/Business Unit Management, Strategic Business Planning & Corporate Development + 2
Minimum Serving/Business Control of No. of Network Companies
10 (Including 5 Related Companies)
Use of local Ancillary Services
Local Financial Institution Services (including finance and treasury), logistics, legal and arbitration services, finance and treasury services)

Trading of Goods Annual Sales Turnover
(Additional requirement for companies applying for
tax exemption on trading income)

Average sales turnover for the past 3 years or
RM500 million whichever is higher.

Trading of Goods Annual Sales Turnover
(Additional requirement for companies applying for tax exemption on trading income)

Structured Internship Programmes / equivalent
Training Schemes introduced by the Government

Structured Training Programmes
Average sales turnover for the past 3 years or RM500 million whichever is higher.
Approved with incentive:
Conduct Structured Internship Programmes/ equivalent Training Schemes to train at least one (1) graduate every year.
At least 10% of local workforce from the entire workforce to undergo structured training programs for upgrading of skills in related qualifying services during incentive period
  • PH company upon its approval must comply with the stipulated conditions during the exemption period.
  • Where in any year of assessment of the exempted period, the PH company fails to comply with the conditions on annual business spending, annual high value jobs and annual value of sales, the PH company may not enjoy the exemption on statutory income for that year of assessment.
Categories
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Special Tax Incentive For Company Relocating into Malaysia

Special Tax Incentive For Company Relocating into Malaysia

Special Tax Incentive For Company Relocating into Malaysia

Listed below are the tax incentives offered to new and existing foreign companies relocating their business
into Malaysia:-

Type of Company
Eligible Capital Expenditure (RM)

Incentive

Incentive

Duration

1. New company
i. RM300 million to
RM500 million.
Special tax rate
0%
10 years
ii. RM500 million and above.
Special tax rate
0%

15 years

2. Existing company
Relocating overseas facilities into Malaysia with capital investment above RM300 million
Investment tax allowance (ITA)
100%
5 years and is offset against 100% statutory income of the activity.

Eligibility Criteria

Definition of new company
a) Company relocating manufacturing facility for eligible activities from another country to Malaysia; or
b) Company establishing new operation in Malaysia; and
c) Do not have existing manufacturing operation in Malaysia.
Definition of existing company
Foreign or locally owned company that has existing manufacturing operation in Malaysia and is relocating its manufacturing operations from outside Malaysia for new business segment.

The products from the new business segment are not part of the expansion project for existing products.
Conditions for this incentive
a) To incur the capital expenditure (excludes land cost) within 3 years from the date of the first capital expenditure incurred;
b) To incur the first capital expenditure within 1 year from the approval date; and
c) Company will be subjected to conditions related to the Employment and Vendor Development Program
Promoted manufacturing activities
Manufacturing activities EXCEPT manufacturing activities as below:-
Non Products / Activities Industries
All products for iron & steel considered sensitive except products listed in the Promoted Activities / Products Under the PIA 1986 under the category of Manufacture of Iron and Steel, and Manufacture of Non- Ferrous Metal and their Products
Iron & Steel
Weapon and ammunitions Machinery & Equipment
Electricals products supplied to generate power for consumption of TNB and Petronas such as general cables, wire harness, distribution boards, control panels, switching apparatus, transformers Electrical
Liquor and alcoholic beverages Beverages & Tobacco
Tobacco and tobacco products including cigarette Beverages & Tobacco
Palm Oil milling and refining Palm Oil
Production of food products that only involve mixing, blending and cooking. Example: sauces, paste, premix food products Food Manufacturing
Beverages Beverages & Tobacco
Sugar Food Manufacturing
Pineapple Canning Food Manufacturing
Paper-based packaging materials from waste paper except for coated duplex board Paper, Printing & Publishing
Wood-based products including furniture, plywood, sawn timber and others Wood & Wood Products
Printing and Publishing Paper, Printing & Publishing
Remanufacturing/ reconditioning/ reassembly of motor vehicles and related components Automotive / Motor vehicle
Non-EEV Automotive / Motor vehicle
Drones and rocket Aerospace related products for Military/Defense application (Non-commercial segment) Aerospace for Military/Defense Application
Recycling of any types of waste All
Refinery of crude petroleum oil Petroleum
Passengers car tires Rubber
General plastic products such as plastic bags, bottles Plastic
Gloves All
Manufacturing of construction material except for following products:
  • Industrial Building System (IBS)
  • Panels
  • Boards
  • Tiles
  • Blocks or similar articles of natural and synthetic fiber agglomerated with cement plaster or other mineral binding substance
Construction
Textiles products except for following activities:
  • Natural or man-made fibres
  • Yarn of natural or man-made fibres
  • Woven fabrics
  • Knitted fabrics
  • Non-woven fabrics
  • Finishing of fabrics such as bleaching, dyeing and printing
  • Specialised Apparel
  • Technical or functional textiles and textile products
Textile
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MSC Malaysia Status Service Incentive

MSC Malaysia Status Service Incentive

MSC Malaysia Status Service Incentive

MSC Malaysia (formerly known as Multimedia Super Corridor) is a Special Economic Zone and high- technology business district in central-southern Selangor, Malaysia. MSC Malaysia Services Incentive has been approved by the Government of Malaysia in Year 2019. Qualifying companies which have been awarded the MSC Malaysia Status and met the required conditions for income tax exemptions, are exempted from paying the income tax during the tax holiday period.

1. Overview Of The Incentive

  1. Company may choose to enjoy Tier 1 or Tier 2 category which allows 100% tax exemption. Alternatively, there is Tier 3 category which allows 70% income tax exemption on statutory income derived from approved MSC Malaysia promoted activities.
  2. For Tier 1 and Tier 2, the incentive period is limited to five (5) years and renewable for another five (5) years period.
  3. The income tax exemption is granted on statuary income derived from the approved MSC Malaysia promoted activities and shall exclude any royalty or other income derived from an intellectual property right (‘IPR’).
  4. If the commencement date of the exemption period is 1 July 2021, companies are required to comply with the conditions in Appendix A starting from the said commencement date.
  5. If the commencement date of the exemption period is 1 January 2019 or date of first invoice, whichever is later, companies are required to comply with the conditions in Appendix B starting from the said commencement date.

2. Assessment Criteria

To be eligible to apply for the MSC Malaysia Status and the Services Incentive, Companies are required to meet the following criteria:-

  1. A company incorporated under the Companies Act 2016 and resident in Malaysia;
  2. Carry out one or more of the MSC Malaysia promoted activities and has not issued any invoice for such proposed activities in Malaysia on the date of application;
  3. Company which has issued an invoice (i.e on the date of application) may be eligible if it has at least 60% Malaysian equity ownership and has issued its first invoice for such proposed activities in Malaysia not more than 12 months prior to the date of application.
  4. The MSC Malaysia promoted activities refer to:-
    • Big data analytics (BDA);
    • Artificial intelligence (AI);
    • Financial technology (FinTech);
    • Internet of things (IOT);
    • Cybersecurity (technology/software/design and support);
    • Data centre and cloud (technology/software/design and support);
    • Blockchain;
    • Creative media technology;
    • Sharing economy platform;
    • User interface and user experience (UI/UX);
    • Integrated circuit (IC) design and embedded software;
    • 3D printing (technology/software/design and support);
    • Robotics (technology/software/design)
    • Autonomous (technology/software/design and support);
    • Systems/network architecture design and support; or
    • Global business services or knowledge process outsourcing excluding non-technical and/or low value call center; data entry; and recruitment process outsourcing.
  5. The promoted activities exclude Trading, Manufacturing and Provision of telecommunication services.

Appendix A

Conditions

Tier 1

Tier 2

Tier 3
Location of approved MSC Malaysia and undertakes the approved MSC Malaysia qualifying activities in Malaysia
Designated Premises within MSC Malaysia Cybercities or Cybercentres
Other Commercial Premises within MSC Malaysia Cybercities or Cybercentres
Not subjected to location requirement
Minimum KPI Numbers
A. Full time employees (comprising Knowledge Workers) with monthly base salary
(i) 50 full time employees with monthly base salary of RM5k; OR

(ii) 30 full time employees with monthly base salary of RM10k

Data Centre: 5 full time employees with monthly base salary of RM5k.
(i) 30full time employees with monthly base salary of RM5k; OR

(ii) 20 full time employees with monthly base data centre: 5 full time employees with salary of RM8k
B. Annual operating expenditure and investment in fixed asset
RM 3.5 million
Data Centre: RM10 million
RM1 million
C. Percentage (%) of Malaysian Knowledge Workers (for the full time employees
70%
50%

Appendix B

Conditions

Tier 1

Tier 2

Tier 3
Location of approved MSC Malaysia and undertakes the approved MSC Malaysia qualifying activities in Malaysia
Designated Premises within MSC Malaysia Cybercities or Cybercentres
Other Commercial Premises within MSC Malaysia Cybercities or Cybercentres

Not subjected to
location requirement

Minimum KPI Numbers
(to be complied in Year 1 and Year 2 of the exemption period)
A. Full time employees (comprising Knowledge Workers) with monthly base salary
2 full time employees with monthly base salary of RM5k
B. Annual operating expenditure
RM50k
Minimum KPI Numbers
(To be complied with from Year 3 onwards until expiry of exemption period)
C. Full time employees (comprising Knowledge Workers) with monthly base salary
(i) 50 full time employees with monthly base salary of RM5k; OR

(ii) 30 full time employees with monthly base salary of RM10k

Data Centre: 5 full time employees with monthly base salary of RM5k
(i) 30 full time employees with monthly base salary of RM5k; OR

(ii) 20 full time employees with monthly base data centre: 5 full time employees with salary of RM8k
D. Annual operating expenditure and investment in fixed asset
RM 3.5 million

Data Centre: RM10 million
RM1 million
E. Percentage (%) of Malaysian Knowledge Workers (for the full time employees in (D) above)
70%
50%
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Labuan GIFT Programme for International Commodity Trading

Labuan GIFT Programme for International Commodity Trading

Background

The Global Incentives for Trading (GIFT) Programme is tax incentives to encourage the traders to use Malaysia as an international base for specified types of commodities to be conducted on in, from or through Labuan, Malaysia.
Global Incentives For Trading (GIFT) Programme
Eligibility Entities
  1. Labuan Entities licensed as a Labuan International Commodity Trading Company (LITC).
  2. Traditional commodities such as petroleum and petroleum-related products. The specified trading of physical products and related derivative are as follows:-
    • Petroleum and petroleum-related products (including liquefied natural gas (LNG);
    • Mineral;
    • Agricultural products;
    • Refined raw materials;
    • Chemicals;
    • Base minerals; and
    • Coal.
Incentive Commitment
  1. Minimum annual turnover of USD 50 million;
  2. Substantial Activity Requirements for Labuan International Commodity Trading Company (LITC) under the GIFT Programme :-
Labuan Entities Annual operating expenditures
Labuan International Commodity Trading Company.

  1. 5 or less related LITC companies.
  2. Every incremental of 5 related LITC companies.
RM3,000,000 (USD 750,000) per entity in Malaysia (including minimum of RM100,000 (USD 25,000) in Labuan).

RM3,000,000 (USD 750,000) per entity in Malaysia (including minimum of RM100,000 (USD 25,000) in Labuan).

Local business spending including:
  • Freight charges
  • Bank charges
  • Commissions
  • Depreciations
  • Entertainment
  • Insurance costs
  • Professional fees
  • Rental of office space
  • Skills development fund
  • Telecommunications
  • Transport and travel
  • Utilities
  • Warehousing and storage fees
  • Manpower costs
  • Office maintenance
Labuan Entities Minimum number of full time employees in Labuan
Labuan International Commodity Trading Company.

  1. 5 or less related LITC companies.
  2. Every incremental of 5 related LITC companies.



2 staff per group.

Increase of 1 employee for every additional 5 LITC companies.

c. To employ at least three (3) professional traders who are tax residents of Malaysia.

Operational Requirements

LITC to have the following functions (but not limited to) in Malaysia:
  1. Strategic management;
  2. Banking;
  3. Finance and treasury management;
  4. Risk management;
  5. Market research and product portfolio development;
  6. Logistics management;
  7. Global procurement;
  8. Marketing and sales planning.
Location for consideration
Operating and/or marketing office can be based anywhere in Malaysia.
Incentives
  1. 3% on audited chargeable profits;
  2. 100% tax exemption on director fees paid to a non-Malaysian director;
  3. 50% tax exemption on gross employment income of non-Malaysian professional, managerial including traders with LITC;
  4. Tax exemption on dividends received by or paid from the LITC;
  5. Tax exemption on royalties received from the LITC;
  6. Tax exemption on interest received by residents or non-residents from the LITC;
  7. Stamp duty exemption on all instruments for Labuan business activities, M&A of Labuan entities and transfer of shares;
  8. No sales tax and service tax;
  9. The non-deductability rules under P.U (A) 375/2018 dated 31st December 2018 is not applicable to transactions between LITC and Malaysian resident (subject to fulfillment of the tax substantial activity requirements).

Setting up LITC Company

  1. Apply licence with Labuan FSA*
  2. Approval from Labuan FSA* obtained
  3. Incorporation of LITC
  4. Commence business

Comparision Between Labuan Gift Programme Vs Singapore Global Trader (GTP) Programme

GIFT (MALAYSIA)
GTP (SINGAPORE)
Incentives
3% on audited net profit. No renewal is required, provided that the Substances Regulations for LITC are met.
Reduced corporate rate of 5% – 10% on qualifying trading income for renewable period three (3) to five (5) years.
Qualifying commodities and products:-
  1. Petroleum and petroleum related products, including liquefied natural gas (LNG);
  2. Mineral;
  3. Agricultural products;
  4. Refined raw materials;
  5. Chemicals;
  6. Base minerals; and
  7. Coal.
  1. Electronic and electrical products;
  2. Consumer products;
  3. Building and Industrial materials;
  4. Industrials products;
  5. Energy commodities and products;
  6. Agricultural commodities and bulk edible products;
  7. Minerals;
  8. Machinery components

Physical trade that qualify under GTP:
  1. Trans-Shipment Trade;
  2. Offshore Trade;
  3. Re-Export Trade (only the non- value added portion of the trades qualify).
Business transactions
Allowed to have transactions with Malaysians for petroleum and petroleum-related products.
Transactions are only those with offshore parties or other GTP companies.
Operation cost
Lower cost of operation, wages and rental.
High cost of operation, wages and rental.
Location
All States in Malaysia, including Iskandar Malaysia
Singapore

Requirements

  1. Minimum annual turnover of USD50 million;
  2. Annual operating expenditures of RM3 million (USD 750,000) payable to Malaysian residents in Ringgit Malaysia;
  3. Minimum 3 professional traders who are tax residents in Malaysia.
  1. Minimum annual turnover of USD100 million;
  2. Minimum local expenditure of SGD $3million (USD 2.3million); and
  3. Minimum 3 trading professional employed which involved in one of the following sectors: risk management, procurement/sourcing or sales and marketing.
Who can apply
Any person who intend to establish a Labuan entity to undertake international commodity trading business.
Well-established players engaged in international physical trading on principal basis and have substantial operations in Singapore and meet stringent quantitative criteria, including employment and local expenditure.
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Why Labuan Foundation is Best Choice in Asia as Private Wealth Management Vehicle?

Why Labuan Foundation is Best Choice in Asia as Private Wealth Management Vehicle?

Labuan Foundation is probably one of the Best Choices in Asia as your wealth management vehicle. While there are 21 jurisdictions worldwide which have Foundation Acts to govern wealth management activities, Labuan which is governed by the Labuan Foundation Act 2010, remains the ONLY jurisdiction in Asia. As such, your assets are protected under its own jurisdiction from the local or foreign claims and cannot be liquidated forcefully.

 

Labuan Foundation has other Silent Features as private wealth management vehicle as below:

Labuan Company Carrying on a Labuan Business Activity
  • A corporate body with a separate legal entity
  • Provided by the Labuan Foundations Act 2010
  • Established to manage its own property for any lawful purpose, be it for charitable or non-charitable purposes
Structure (Example)
Why Labuan Foundation-Structure

Control

Founder has extensive control.

Confidentiality

End beneficiaries is anonymous.

Capital Transfer

No capital requirements. Minimum endowment of USD1.00 as an initial asset at time of establishment.

Nationality

No requirement for founder/councillor.

Appeal Against Transfer By Creditors

Only within the first two years of registration.

Appeal Against Inheritance Provisions

No appeal possible because of foreign laws.

Foreign Claim Or Judgment

Unenforceable

Rights And Powers Of A Founder

Enshrined via the charters.

Holding Of Malaysian Assets For Non-charitable Foundations

May hold with Labuan FSA’s approval.

Involvement Of Corporate Body

Allowed to be appointed as :

  • Founder
  • Council (Can be natural person or a corporation)
  • Officer (Can be natural person or a corporation)
  • Beneficiary

Duration

Fixed or perpetual.

Dissolution

Assets returned to designated party.

Ownership Of Foundation’s Asset

Beneficiary has no legal or beneficiary ownership over the foundation’s asset.

Taxation On Income

Under Income Tax Act 1967 if include Malaysian property.
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International (Initial Public Offering) Pre IPO and IPO Advisory

INTERNATIONAL (INITIAL PUBLIC OFFERING)
Pre IPO and IPO ADVISORY

global standard of sustainability

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

How Has Business Registration Changed-1
Global Standard of Sustainability Reporting

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
Set Up Payment Roll For Your New Business-1

Key Areas that Management Have to Consider before going public

Guide to Incorporating a Company-2
  • 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:
signing a cheque
  • 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
representing clients in meeting

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 realise 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 recommandations 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.
Company Taxes In Malaysia
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