TAC One Stop Advisory PLT

21/07/2026

A meaningful day of sharing knowledge and building the next generation of tax professionals.

As a Chartered Tax Practitioner and tax educator, I strongly believe that professional learning goes beyond textbooks and technical rules. The real value comes from connecting theory with practical experience, discussing real-life challenges, and creating a platform where professionals can learn from one another.

Today’s CTIM class on property development taxation was a wonderful opportunity to share insights, exchange perspectives, and explore the practical application of tax principles under the Income Tax Act 1967 and LHDN guidelines.

Every question, discussion, and interaction from the participants added value to the learning journey. Seeing professionals who are committed to enhancing their knowledge is truly inspiring.

At TAC One Stop Advisory PLT TAC One Stop Advisory PLT, we believe in continuous learning, professional excellence, and contributing towards a stronger taxation community.

Thank you to all participants for your enthusiasm and active participation. Let us continue to learn, grow, and elevate the tax profession together.

Knowledge shared is knowledge multiplied.

20/07/2026

Withholding Tax Matters in Malaysia

(Applicable for Payments to Non-Residents)

1. Introduction to Withholding Tax (WHT)

Withholding Tax is a mechanism where the payer in Malaysia is required to deduct tax from certain payments made to a recipient (payee), particularly non-residents, and remit the deducted amount to the Inland Revenue Board of Malaysia (IRBM/LHDN).

The purpose of withholding tax is to ensure that Malaysia collects tax on income derived from Malaysia even when the recipient does not have a business presence in Malaysia.

Key parties:

Payer

Malaysian company / business making payment

Responsible for determining whether WHT applies

Must deduct and remit tax to LHDN

Payee

Non-resident individual or company receiving the income

2. When Does Withholding Tax Apply?

Withholding tax may arise when a Malaysian payer makes payments to a non-resident person for income that is considered derived from Malaysia.

Common payments subject to WHT include:

Type of Payment Relevant Section General WHT Rate

Interest Section 109 15%
Royalty Section 109 10%
Special Classes of Income (e.g. technical services, consultancy, installation services performed in Malaysia) Section 109B 10%
Contract Payments to Non-Resident Contractors Section 107A 10% + 3%
Public Entertainers Section 109A 15%

Rates may be reduced where a Double Taxation Agreement (DTA) applies and treaty conditions are satisfied.

3. Common Withholding Tax Situations for Businesses

A. Payment for Technical Services / Consultancy Fees

Example:

A Malaysian company engages a foreign consultant from Singapore to provide technical advisory services.

Invoice:

Professional fee: RM100,000

Possible WHT:

10% × RM100,000
= RM10,000 withholding tax

The Malaysian company pays:

Consultant: RM90,000
LHDN: RM10,000

(Subject to tax treaty review and nature of services provided.)

B. Royalty Payments

Examples:

Use of trademarks

Copyrights

Software licences

Intellectual property rights

Example:

Malaysian company pays foreign company:

Software licence fee: RM200,000

WHT:

10% × RM200,000
= RM20,000

C. Interest Payments

Examples:

Loan interest paid to overseas related company

Interest payable to foreign lenders

General WHT:

15%

Example:

Interest payment: RM50,000

WHT: RM7,500

4. Timing for Deduction and Remittance

The payer must deduct withholding tax when payment is:

Paid, or

Credited to the non-resident recipient

The tax deducted must generally be remitted to LHDN within one month after payment or crediting the amount, whichever applies.

5. Forms Used for Withholding Tax Payment

Common forms include:

Payment Type Form

Interest / Royalty / Special Classes of Income CP37
Contract Payments CP37A
Other specified payments CP37D

Supporting documents normally maintained:

✅ Contract / agreement
✅ Invoice
✅ Proof of payment
✅ Tax residency certificate (for treaty claim)
✅ Withholding tax computation
✅ Payment acknowledgement from LHDN

6. Double Taxation Agreement (DTA) Consideration

Malaysia has entered into Double Taxation Agreements with various countries to prevent double taxation.

Before applying treaty rates, businesses should consider:

Is the recipient a tax resident of the treaty country?

Is a valid Certificate of Residence available?

Does the income qualify under the treaty article?

Are beneficial ownership requirements satisfied?

Treaty rates may differ from domestic Malaysian rates.

7. Common Errors During Tax Audit

From a tax audit perspective, companies should pay attention to:

❌ Failure to identify non-resident payments

Examples:

Overseas consultants

Software subscriptions

Licensing fees

Foreign marketing services

❌ Incorrect assumption that all overseas payments are not taxable

Payment made outside Malaysia may still attract WHT if the income is considered derived from Malaysia.

❌ Late payment of WHT

Late remittance may result in penalties and additional tax exposure.

❌ Lack of supporting documents

Companies should maintain proper documentation to support the WHT position.

8. Practical Checklist for Companies

Before making payment to an overseas party:

☑ Identify recipient tax residency
☑ Review nature of payment
☑ Check Income Tax Act 1967 provisions
☑ Review applicable DTA
☑ Obtain Certificate of Residence (if claiming treaty benefit)
☑ Deduct WHT where applicable
☑ Submit payment to LHDN within timeline
☑ Keep supporting documents for audit purposes

15/07/2026

Empowering Businesses Through Practical Tax Knowledge

Tax compliance is no longer just about filing returns. With evolving tax legislation, e-Invoicing, payroll obligations, withholding tax, and increasing compliance requirements, organisations need practical knowledge they can immediately apply.

As a Licensed Tax Agent, Chartered Tax Practitioner (CTP), and HRD Corp Accredited Trainer, I specialise in delivering practical, engaging, and compliance-focused tax training for businesses across Malaysia.

My training programmes include:
✔ SME Corporate Taxation Essentials
✔ Employment Income, PCB, Form EA & Form E
✔ Withholding Tax (Sections 107A, 109, 109B & 109F)
✔ E-Invoicing (MyInvois) Implementation
✔ Tax Audit Readiness & LHDN Expectations
✔ Capital Allowances & Tax Incentives
✔ Payroll Tax Compliance
✔ Tax Updates & Budget Briefings

I believe effective training should go beyond theory. Every session is built around real-life case studies, practical examples, and actionable solutions that participants can confidently apply in their organisations.

Over the years, I have had the privilege of training entrepreneurs, finance professionals, HR teams, and corporate organisations, helping them strengthen compliance while improving business decision-making.

I am currently open to collaborations with: • HRD Corp Registered Training Providers
• Corporate Organisations
• Professional Bodies & Associations
• Universities & Colleges
• Chambers of Commerce
• Industry Associations

If you are looking for a tax trainer who combines technical expertise with practical industry experience, I would be delighted to collaborate.

Let's work together to build stronger tax knowledge and compliance across Malaysian businesses.

📩 Email: [email protected]
📞 Contact: +60 16-225 7482
💬 WhatsApp: https://wa.me/60162257482

I look forward to connecting with training providers, corporate organisations, and business associations to deliver impactful tax training that creates lasting value.

10/07/2026

Sole Proprietors: Are You Mixing Personal & Business Expenses? Here’s What Every Business Owner Should Know

Many sole proprietors ask:

Can I use my business money for personal expenses?
Can I claim everything paid from my business account?
Can I pay myself a salary?

The answer requires a proper understanding of the difference between business expenses & owner drawings.

For a sole proprietor the owner and the business are legally the same person. Therefore:

❌ You cannot claim your own "salary" as a business expense.
✅ You may withdraw money from the business for personal use, but it should be recorded as Owner’s Drawings.

Example:

Business profit before owner withdrawal: RM100,000
Owner withdraws RM30,000 for personal expenses

The taxable business income remains RM100,000 because the RM30,000 withdrawal is not a business expense.

How can business owners manage this properly?

✅ Open a separate business bank account
✅ Use business funds only for business transactions
✅ Transfer a fixed amount monthly for personal needs
✅ Record personal withdrawals as owner drawings
✅ Keep receipts and supporting documents for all business expenses

Remember the simple rule:

Not every payment from your business account is a business expense.

To claim a tax deduction, the expense must be:
✔ Related to the business
✔ Incurred to generate business income
✔ Supported by proper documentation

Examples:

✅ Business rental → Claimable
✅ Accounting fees → Claimable
✅ Advertising expenses → Claimable
✅ Business software subscription → Claimable

⚠️ Mixed expenses:
Mobile phone, internet, vehicle and home office expenses may require a reasonable business-use allocation.

❌ Personal expenses:
Family holidays, groceries, personal shopping and household expenses are not business deductions.

A good tax system is not about avoiding tax it is about claiming every legitimate deduction while maintaining proper records and staying compliant.

Tax Tip for SMEs:
Separate your money today to protect your business tomorrow.

07/07/2026

“Why do I need a Tax Agent when I can ask Tools for tax advice?”

This is a question many and are asking today.

Technology has changed the way we access information. AI tools like can help explain tax concepts, provide knowledge, and support business owners in understanding financial matters.

However, tax is not about getting an answer.

Tax is about making the # tax based on your unique business circumstances.

As a Tax Agent, my role is to help clients:

✅ Understand their tax obligations under the Income Tax Act 1967
✅ Identify tax planning opportunities within the law
✅ Prepare accurate tax computations and submissions
✅ Minimise tax risks and avoid unnecessary penalties
✅ Make better financial decisions for sustainable business growth

AI can provide information but A Agent provides , experience, strategy, and accountability.

Every business is different. The same tax advice does not apply to everyone. A manufacturing company, service provider, property investor, and SME entrepreneur each require different tax considerations.

The future is not about with .

The future is about AI efficiency with professional expertise to create better outcomes for businesses.

As your Tax Agent, my commitment is to help you navigate tax with confidence — not just to file tax returns, but to your business journey.

📌 Smart tax planning today creates stronger businesses tomorrow Ts. Dr. Gajendra Balasingham

03/07/2026

It was a privilege to conduct a Withholding Tax training session for Kaneka (Malaysia) Sdn. Bhd.

As part of the global Kaneka Group, Kaneka Malaysia is a leading manufacturer of specialty chemical products serving diverse industries, including construction, automotive, electronics, healthcare, and pharmaceuticals.

The session focused on the practical application of Malaysia’s withholding tax rules, common compliance issues, cross-border transactions, and best practices to strengthen tax compliance and governance.

A sincere thank you to the management and all participants for the opportunity, warm hospitality, active participation, and insightful discussions throughout the session.

Looking forward to future collaborations.

02/07/2026

📂 Tax Season: Behind Every Submission Is a Thorough Review

As the tax filing deadlines draw closer, our desks become filled with tax computations awaiting review. Every file represents a business, a livelihood, and a responsibility entrusted to us.

While many see only the final tax return, what happens behind the scenes is where the real value lies.

Every tax computation undergoes a detailed review to ensure

✔️ Income and expenses are correctly reported
✔️ Tax adjustments comply with the Income Tax Act 1967
✔️ Capital allowances are accurately claimed
✔️ Prior year balances and tax losses are reconciled
✔️ Withholding tax implications are considered
✔️ Tax incentives and reliefs are properly applied
✔️ Supporting documents are complete before submission

As tax agents, our role extends beyond meeting deadlines. It is about exercising professional judgement, ensuring technical accuracy, and protecting our clients through quality tax compliance.

Yes, the workload increases significantly during filing season, but every review brings us one step closer to delivering accurate and compliant tax returns.

To all fellow tax professionals working through this busy period—stay focused, stay organised, and remember that quality should never be compromised by deadlines.

Accuracy today helps prevent tax issues tomorrow.

17/06/2026

https://www.facebook.com/share/1Jc32dWVmz/

Milestone Achieved: Educating Almost 1,000 SMEs & Business Entrepreneurs in Tax Matters and Tax Planning

I am truly honoured and grateful to be recognised for my continuous contribution in educating and empowering SMEs and business entrepreneurs on tax compliance, tax matters and practical tax planning.

Over the years, I have had the opportunity to train and guide almost 1,000 SME business owners, entrepreneurs and professionals to better understand their tax responsibilities, avoid unnecessary penalties and make informed business decisions.

Tax is not just about filing returns. It is about awareness, planning, compliance and protecting your business for long-term growth.

This milestone is a reminder of why I started this journey — to simplify tax knowledge and make it practical, understandable and accessible for business owners.

A heartfelt thank you to all organisers, business communities, clients and participants who have trusted me throughout this journey.

For businesses that require assistance on tax compliance, tax planning, tax advisory, tax audit, payroll tax, withholding tax, SST, stamp duty or e-Invoicing matters, please feel free to reach out.

Let us continue to Educate • Empower • Elevate Malaysian SMEs.

TAC One Stop Advisory PLT
Tax | Advisory | Compliance

📍 Kuala Lumpur, Malaysia
📞 016-225 7482
📧 [email protected]

16/06/2026

06/06/2026

✨ Your Trusted Partner in Tax, Advisory & Compliance ✨

At TAC One Stop Advisory PLT, we are committed to helping businesses, entrepreneurs, SMEs and professionals manage their tax and compliance matters with confidence.

With over 25 years of professional experience, we provide practical and personalised solutions in:

✅ Corporate & Personal Tax Compliance
✅ Withholding Tax Advisory
✅ Payroll & Employer Compliance
✅ E-Invoicing Implementation Support
✅ Accounting & Business Advisory
✅ LLP & Corporate Compliance
✅ HRD Corp Claimable Corporate Training
✅ Finance, Taxation & Business Compliance Programmes

Our mission is simple:
Educate • Empower • Elevate

We believe tax and compliance should not be confusing. With the right guidance, businesses can stay compliant, make better financial decisions, and grow sustainably.

📍 Kuala Lumpur, Malaysia
📞 016-225 7482
📧 [email protected]

TAC One Stop Advisory PLT
Tax | Advisory | Compliance