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Chapter 1- part III - Coggle Diagram

- - - - Management and control of its business or any of its business are exercised in Malaysia
      - Management and control of its affairs are exercised in Malaysia by its directors or other controlling authority
      - Foreign companies carries on trading activities in Malaysia wishing to be a non-resident company needs to ensure that all of its board meetings are held outside Malaysia
  - - - The director's action and not the shareholder's action determine the residence status
      - This determines the residence status of a company
    - - This would not determine the residence status
    - - Does not determine the residence status
      - The place where the books and accounts are kept also does not determine the residence status
  - - - Non-resident company is charged at 24% while resident company is charged at either 17% or 24%
      - Scope of charge for persons carrying on activities other than specific business is charged on territorial basis while to those carrying on specific business are charged on world-scope basis
        
        For non-residents, they are taxed on income derived from Malaysia
    - - Resident company
        
        The dividends paid, credited, distributed are deemed to be dividend income derived from Malaysia
      - Non-resident company
        
        Otherwise, unless the management and control are exercised in Malaysia, then the on or after the day
    - - Both under Promotion Investment Act and ITA are normally given to resident person, especially resident company incorporated in Malaysia
    - - Amounts credited or paid to non-resident person only
    - - Apply only to resident person
- - - - A person needs to notify the DGIR not later than 30 days before it is due to be paid
      - Upon receiving that notice, DGIR may reduce the assessment that has been made in respect of such sum
- - - - To be taxed at two tier tax rates, the SME needs to satisfy the gross business income from one or more sources of not more than RM50m
    - - 17%
        
        Income up to RM600.000
      - 24%
    - - Allowed for public listed companies where they can purchase their own shares in Bursa Malaysia
      - For other companies, a solvency test is required
  - - - Incorporation expense would be deductible against business source if the authorised share capital at the date of incorporation does not exceed RM2.5 million
    - - The incorporation expense is still allowed to be deductible under PR