Malaysia provides an elaborate system of financial incentives to support your business investments. Identifying, understanding and applying for the right and most suitable incentives for your business may be quite complex, time-consuming and challenging. However, it is also one that can generate significant benefits to your business.

With our team of experienced tax professionals at ALN, we will help support your business to pursue the right incentives suitable to your business needs.

Transfer pricing (TP) generally refers to intercompany pricing arrangements for the transfer of goods, services and intangibles between associated persons. The Malaysian Transfer Pricing Guidelines are applicable on controlled transactions for the acquisition or supply of property or services between associated persons, where at least one person is assessable or chargeable to tax in Malaysia.

ALN’s TP team is well placed to assist our clients in terms of:-

• Preparation of TP documentation
• Advance pricing agreements
• TP audit management

1) TP Compliance

• Full/Limited TPD
• Masterfile
• Country-by-country Reporting ("CbCR")

2) TP Health Check

• Quarterly review of margins earned by the company in order to identify if the deviation is due to transfer prices.
• Upon analysing, we would recommend the best way forward. (i.e., Perform quarterly true-up/true-down adjustment, compute the TP exposure (including additional taxes and surcharge) (at year end).

3) Review of TPD prepared in house

• In depth review of the TPD prepared in house.
• Upon analysing the risk areas, we would provide an advisory memorandum on our review comments and recommendations.

4) TP audit defense/dispute resolution

• Assistance during desk audit, field audit, Assistance during Dispute Resolution Department (“DRP”), Special Commissioner of Income Tax (“SCIT”), etc.
• Filing of Voluntary Disclosure (“VD”) services.
• Advance Pricing Arrangement (“APA”) services – In relation to prospective price setting/ specific transaction from the IRB/ RMC/ MOF.
• Mutual Agreement Procedure (“MAP”) services.

5) Outsourcing of benchmarking analysis/Price setting

• In the event, the Client prepares TPD in house and wishes to outsource the benchmarking analysis, we will only perform a standalone benchmarking analysis and margin computation of comparable companies.
• Intragroup services, intragroup financing, royalty rates, intangibles.

6) TP advisory

• TP advisory in relation to restructuring exercise, wherein we would study the structure and recommend the most appropriate approach based on the risk analysis performed.
• Informal ruling on Transfer Pricing Methodology.

Tax audits are enforcement measures to ensure compliance with tax legislations, and can take place even without any suspicion of or actual wrongdoing. In a move to enhance its enforcement strategy, the Inland Revenue Board of Malaysia (IRBM) has initiated collaborations with other government agencies and has launched various tax collection operations.

Tax investigation on the other hand is a more severe enforcement measure undertaken by the IRBM. Generally, a tax investigation is carried out should there be a suspicion by the IRBM based on any precise and definite evidence to show that the taxpayer has deliberately avoided taxes or committed an act of wilful evasion under the tax laws. The main objective of such visit is to prove that an offence has been committed and impose the appropriate penalties upon the taxpayer, ranging from a fine to imprisonment.

At ALN, our professionals are highly experienced in identifying potential areas of dispute, managing tax audits and tax investigations and resolving tax disputes. We have assisted many of our clients in reaching an amicable resolution over the years with the IRBM.

On 1 September 2019, Malaysia witnessed the transition of its indirect tax regime from the Goods and Services Tax (GST) to the new Sales and Services Tax. Businesses can incur significant compliance and administrative cost dealing with the Royal Malaysian Customs Department (RMCD) for declaration of imports and exports. Structuring transactions to achieve correct classification, valuation, customs rate of goods amongst others, would reduce the cost of doing business.

Our team of experienced tax consultants are here to help you identify and work through these sales tax or service tax implications as well as identifying suitable tax exemptions to give you a peace of mind that your company’s indirect tax matters.

In today’s financial and tax environment, there is a need for robust financial analysis when carrying out business deals. Due to these circumstances, financial due diligence and timely professional advice can significantly enhance the quality of decisions for buyers as well as sellers.

Turn to us for financial due diligence services – either from a buyer or seller’s side and we shall support you with the identification, assessment and management of risks and opportunities towards achieving your desired business results.

Under the Self Assessment System (SAS), taxpayers are required to self-assess their respective tax liabilities and ensure that the correct amount is paid on time. The onus is now on the company to compute its tax liability correctly and pay the correct amount of tax on time. In this respect, the company has to keep abreast of tax developments.

Regulatory tax compliance is amongst our core competency. We offer all aspects of regulatory compliance services to our clients from varied sectors and industries and are international as well as local. Our corporate tax compliance and advisory services includes issues on income taxes, permanent establishments and withholding taxes to name a few.

Similar to corporate taxpayers, individual taxpayers are required to self-assess their respective tax liabilities under the Self Assessment System (SAS) as well. This includes both Malaysians as well as expatriates working in Malaysia.

At ALN, we strive to provide you with the assistance you need in your tax compliance matters to enable you to plan for your future financial matters

ALN has a team of dedicated professionals who are focused on effectively servicing clients from the start-up phase to the day-to-day finance operation of your company.

Our services include: 

• Entity setup
• Bookkeeping services
• Management reporting
• Statutory accounting and reporting
• Indirect tax (sales or service tax) compliance
• Audit and tax support

Our team of experienced advisors specializes in developing customized strategies tailored to your unique business needs. Whether you're looking to expand into new markets, launch innovative products, or streamline your operations, we can help you navigate the complexities of today's business landscape.

Our approach begins with a comprehensive analysis of your current business model, market position, and competitive landscape. From there, we work closely with you to identify opportunities for growth and develop a roadmap to success.