One of the major findings about students ability to complete the paper - get your basics in order.
Ensure you have the knowledge requirement for the syllabus in your finger tips before you go into the exam hall
Major changes that need to be considered
All types of Foreign Sourced Income (FSI) received by a tax-resident individual in Malaysia would be tax-exempted from Jan. 1, 2022 to Dec. 31, 2026. However, the FSI shouldn’t be used for carrying out the operations of a partnership business.
For tax-resident Limited Liability Partnerships (LLP) and companies, the FSI is tax-exempted if the income has been received in the shape of dividends. This type of tax exemption is available from Jan. 1, 2022 to Dec. 31, 2026. However, any other type of FSI received by the above entities would remain taxable - at full rate after 30 June 2022 and 3% for 1 Jan 2022 till 30 June 2022
Since 2019, the unabsorbed losses used to be carried forward for seven consecutive assessment years. By the introduction of the Financial Act 2021, the carry-forward period is extended to 10 years.
A 2% withholding tax has been imposed on the payments made by companies to their authorized dealers, distributors, or agents. Besides, such payment should have been raised through transactions, sales, or schemes offered by the agents.
This amendment will be effective from Jan. 1, 2022. However, the withholding tax is applicable only if the agent is a tax-resident individual and the payment exceeds 100,000 Malaysian ringgits during the current fiscal year.
In the past, imported goods were not subject to sales tax if the value of each consignment didn’t exceed 500 Malaysian ringgit. After the introduction of FA 2021, this exemption won’t be available from Jan. 1, 2023.
The companies offering brokerage services associated with the shares trading are not subject to service tax. This exemption is available from Jan. 1, 2022. However, e-commerce platforms are bound to pay 6% service tax.
The real property gain obtained through the disposal of property by the Malaysian citizen or PR holder is exempted from tax (from Jan. 1, 2022). The property should have been held by the owner for a period not less than five years.
The following are only good guesses of what could come out in the exam and you should always prepare for the exam properly
Knowledge that can be tested this round for ACCA ATX exam would be:
RPGT - Death; Leases; Sub-lease; NGNL gift; NGNL 75% shares; Co. interco transfer exemptions; RPC shares treatment; compliance issues with RPGT; RPGT losses treatment; Options and contingent liability treatment
Sales tax - Drawback; Importation; Bad debt treatment; Penalties; Inter-co transfers
Individual tax - gratuity; loss of employment; residence planning; difference between resident/non-resident; ESOS
Incentive - MITC; AIE; ASIE; R&D; PS; ITA; RA in that order of preference.
Tax admin - Company estimate; changing estimates; non-compliance implication; powers of DGIR; anti-avoidance for transfer pricing
Royalty treatment ; Labuan; Tax-EBITDA; Bilateral relief vs Unilateral relief; Permanent establishment
Unit trust treatment & REIT tax computation
Stamp duty exemption for interco transfer; eligibility and also withdrawal
Financing - Lease vs HP vs Outright buy vs Rent (Lease - deemed sales classification and implication)
SME classification - whether it is an SME and what is the impact when it is not an SME
Setup - Branch vs Subsidiary
Agricultural allowance; Investment building allowance treatment - claiming it and restrictions to it
Income treatment - whether taxable or not
Expense treatment - whether taxable or not
Derivation of income
ALL MATTERS THAT HAVE BEEN INCLUDED IN THE NEW BUDGET 2022 IS EXAMINABLE ESPECIALLY THE 2% WITHHOLDING TAX REQUIREMENT
Right that is all that I can think about for the coming exam
Those planning to study for June 2023 exam o Jpro Training will open the intake by 24 March 2023
We will have 3 months course and a 6 month course that is provided jointly by Jpro and First Intuition UK.
Price list for the 3 months course is as follows
The fee reflects the subject fee for ACCA 3 months course under Jpro
Jpro Premium courses which combines both Jpro and First Intuition learning system is also available for 6 months - you can take for June or September 2023.
Those planning to sign up for the courses can visit the website to register directly
