Budget 2024 Highlights, E-Invoice and Transfer Simple TP Documentation Prepartion & Allowable Deductions

Every year the tax system goes through various changes focusing of the national objective for the budgeted year.

Transfer Pricing has turned out to be an alarming global topic in recent years due to more and more scrutiny over the tax practices of companies within the group. The Finance Act 2020 introduced enhanced penalties and measures, reflecting the IRB’s seriousness in ensuring taxpayer’s compliance with the TP legislations.

Companies whose (1) turnover exceed RM50m and having RM15m of related parties’ transactions OR having financial assistance of more than RM50m are required to prepared FULL TP DOCUMENTS, whereas others who do not meet the threshold are required to prepare a SIMPLE TP DOCUMENTS.

Failure to have TP DOCUMENTS will (1) end up with a fine of between RM20,000 to RM100,000 or an imprisonment up to 6 months or both. Furthermore, if during the LHDN audit and make any adjustments to the tax, you will have no document to defend, and any adjustment will be subject to a 5% surcharge regardless where there is additional tax to be paid or not

Objectives:

• Enhance the understanding of the various tax implications, incentives, grants and financing benefits introduced in the 2024 budget.
• Understand the Transfer Pricing Concept
• Learn the procedural contents on how to prepare the Simple Transfer Pricing Requirements.
• Gain knowledge on what is deducted under various sections of the ITA.
• Enhance your tax planning effectiveness.