TAX ADVISORY
PERSONAL TAX ADVISORY SERVICES
For individual employees who are going to overseas business trip regularly or are seconded to work overseas, you may be exposed to personal tax in others countries. We can advise you on structuring the remuneration package and implementing tax policies for your company.
On the other side, we also assist and advise Multinational Corporation (MNC) in structuring the employment contract of their expats coming into Malaysia to work. We focus on minimise the tax exposure for their expat and provide consultation to the possibility of any double tax issue.
WHAT DOES PERSONAL TAX ADVISORY SERVICES INCLUDE?
- Determine the source of income for the individual as well as their tax residency;
- Reviewing and advising on the remuneration package;
- Advising and implementing suitable tax policies for the company; and
- Advising on the tax implication(s) of Real Property Gains Tax (RPGT).
BENEFITS OF OUTSOURCING PERSONAL TAX ADVISORY SERVICES TO YTK.
- You can maximise tax savings without breaching Malaysia and foreign country tax laws;
- Reduce concern on the liability of home and foreign country for employee and employer.
CASE STUDY
| Scenario | Employee seconded to high-tax country is exposed to local tax. There is disagreement on the payment of taxes between employer and employee. |
|---|---|
| YTK action | Implement tax policies for the company. |
| Benefits to client | Company is able to prepare remuneration package efficiently. |
CORPORATE TAX ADVISORY SERVICES
It is common for companies to venture overseas to look for business opportunities and reducing operating cost. However, venturing overseas without conducting due diligence may lead to unnecessary cost arising. We can advise on the most tax efficient structure to repatriate your profit back to Malaysia.
WHAT DOES CORPORATE TAX ADVISORY SERVICES INCLUDE?
- Advising on the legal structure of the entity set up in overseas;
- Advising on the tax implication(s) on financing option into the overseas entity;
- Advising on the Transfer Pricing (TP) implication(s) relating to the related party translation;
- Advising on the tax implication(s) of the following transactions:
- Corporate tax
- Sales and Services Tax (SST)
- Stamp duty
- Personal tax
- Custom duty
- Advising on the tax implication(s) of Real Property Gains Tax (RPGT) for real estate company
BENEFITS OF OUTSOURCING CORPORATE TAX ADVISORY SERVICES TO YTK
You are able to prevent common pitfalls and repatriate the maximum profit back to Malaysia.
CASE STUDY
| Scenario | The client wants to set up a company in United Kingdom (UK) to hold UK properties with other investors in Malaysia. They engage us to advise them on the most tax efficient structure. |
|---|---|
| YTK action | We provided insights on the tax implications of various possible scenarios. |
| Benefits to client | The client is aware of the tax implications and achieves maximum savings. |
TRANSFER PRICING DOCUMENTATION
Transfer pricing is the pricing of goods, services and intangibles between related parties. The arm's length principle should be adopted for transfer pricing between related parties.
Companies is advised to prepare and keep contemporaneous transfer pricing documentation to show that their related party transactions are conducted at arm’s length.
For companies which has met following criteria and are not exempted from preparing it, the companies must prepare the transfer pricing documentation :
- Annual Gross revenue ˃ RM 25 million; and
- Total amount of related party transaction ˃ RM 15 millionper annum; or
- Provision of financial assistance ˃ RM 50 million(not applicable for financial institutions)
WHAT DOES TRANSFER PRICING DOCUMENTATION INCLUDE?
- Conduct the transfer pricing studies on the Cross-border transactions between related Companies.
- Provide recommendation to improve the transfer pricing documentation.
BENEFITS OF OUTSOURCING TRANSFER PRICING DOCUMENTATION TO YTK.
- Facilitate reviews by tax authorities and therefore help resolve any transfer pricing issues that may arise;
- Prevention of penalties imposed by Tax authority when taxpayers do not comply with the arm’s length principle and TP documentation requirement.
CASE STUDY
| Scenario | A US subsidiary has a loan payable with interest to its holding company. In addition, there are related party transaction between the US subsidiary and other sister companies within the group. |
|---|---|
| YTK action | We understand the business model and supply chain of the group. We also requested the financial statements and contracts of the transactions. Once the said documents are received, we evaluated on the five methods and apply on the suitable method based on the facts of the case. We researched on the industry and understand the operations of the industry. This allows us to understand and identify the possible comparable, and make suitable adjustments. We obtained data and compute the arm’s length price with the data and adjustments. |
| Benefits to client | The client complies with the requirement and avoids penalty for failing to prepare transfer pricing documentation. |