10.00am - My laptop was sent to IT department to install a few software required to start my task. 

12.00pm - I was assigned my first task to fill in the salary listing into excel sheet. I must key in all the staff details and their transactions throughout the year.

5.30pm - Go Home

2:00pm - Then, I need to fill out the expenses based on client's receipts, documents, and transaction history into Profit or Loss Statement as the first step to do before generating Form C (company/business tax computation).

4.30pm - GO Home

12:30pm  - Fill up the Analysis Account (for form B/BE purposes)where I need to identify the type and taxable amount. Here, I must be able to apply my knowledge on tax computations such as the allowable expense, specific deduction and double deductions from business income. 

2:00pm -  Compute Tax relief.

3:30pm - Learn how to create form B in SPC and how to treat individual tax that have business and already leaving Malaysia. Prepare formal letter to inform IRBM regarding the matter. 

5:30pm - Go Home

10:00am - Preferential tax rate: tax treatment that provides special advantages or benefits to certain individuals or group, includes exemptions, reduced tax rates. (new knowledge)

11:00am - Create from C in Brass Tax (web-based software specifically use to create form C). Basically, Brass Tax extract information from the excel template uploaded and then generates form C and Tax Computation for companies. It helps to identify and analyze accounts that might have smaller friction that was not mention in the P&L. 

5.00pm - Go Home

5.00pm - Go Home

5:30pm - Go home

10:00am - Form E and EA preparation, fill in personal and pay slip (advances must deduct from salary and compute relief for each employee if applicable) information in SPC. Pay slip and personal information must be based on the salary listing and query given by the client.

5:30pm - Go home

Limited Liability Partnership:

1. Limited by guarantee - owned and controlled by members, who are a guarantor rather than shareholder. Liability is limited to the amount members agree to contribute upon dissolution.

2. Limited by share - liability is limited to the unpaid amount of shares.

5:30pm - Go home

9:00am - online training on the Tax Return Form 2024

2:00pm - Make amendment for Form C and Tax Comp in Brass Tax after reviewed by manager.

5:30pm - Go home

5:30pm - Go home

11:00am - Make some amendment for another form (different company) after reviewed by manager.

2:30pm - Got a new task which is to Compute Tax Comp and Form C for one strike off case, and generate form BE (personal tax form for individual who does not have a business) for two client.

1. Employee Provident Funds (EPF) = KWSP

2. Social Security Organization (SOCSO) = Pertubuhan Keselamatan Sosial (PERKESO)

3. Potongan Cukai Bulanan (PCB) = Schedular Tax Deduction (STD)

4. Employment Insurance System (EIS) = Sistem Insuran Pekerjaan (SIP)

5:30pm - Go home

• Form BE (personal tax computation)

• Amendment made for Form C in Brass Tax after received the reviewed paper from manager.

5:30pm - Go home

10:00am - Make amendment in SPC for A,B,C company

5:30pm - Go home

1. Create personal details and salary listing for each employee in the company. (Employer must provide the salary list so tax agent can key in the SPC)

2. Provide query for client if the information they provide was not complete.

3. key in payslip info for employee and employer

5:30pm - Go home

2:00pm - create form B. Form B is for personal taxpayer who has business income, while form BE is for taxpayer who does not have business income.

5:30pm - Go home

5:30pm - Go home

5:30pm - Go home

10:30am - Meeting between Mr. Albert and tax department regarding the issues of approved donation receipts, whether to increase or remain the price for tax service this year, and how procedures to take if clients not replying company's email or WhatsApp to conduct tax service.

2:00pm - receive task to create form C and tax comp in Brass Tax (company taxation).

5:30pm - Go home

• management fee

• secretary fee / preparation of resolution

• audit and accounting fee

• telephone charges

• printing and postage

• other incidental expense to the maintenance of an office

5:30pm - Go home

11:00am - got new task to generate form BE (personal tax that not have business income). However, this client got income from rental, which is quite a new experience for me in term of its computation process, and how to get its information (rental agreement)

5:30pm - Go home

2:00pm - Make amendment on the previous case for Form C and Tax Comp.

5:30pm - Go home.

Permitted expense in 60(f) of Income Tax Act for IHC

1. Direct expense - incurred to earn investment income and deductible against sources of investment income.

2. statutory /regulatory expense - incurred for statutory and regulatory provision like Companies Act (Accounting fee, Annual listing fee, Audit fee, secretarial fee, income tax service fee)

3. Other allowable expense - administrative and management fees, office rental, Office telephone charges, staff salaries and allowance)

5:30pm - Go home.

10:00am - Create form B in SPC ( individual tax computation for an insurance agent whose also have business).

5:30pm - Go home

5:30pm - Go home

5:30pm - Go home

12:00am - Create form C. This case does not have audited report/draft audited report yet, hence I need to refer to the management account (MA) as well as last year tax comp.

5:30pm - Go home

5:30pm - Go home

• From CP204 - income tax payment on installment basis.

• Special deduction component - expense related to audit, professional, secretarial and tax filing.

5:30pm - Go home

11:00am - Create for E for another company

5:30pm - Go home

• For first year company, I must identify pre-commence expenses as these expense are not deductible for tax purpose.

• Small value asset - SVA under hire purchase that is not exceeding than RM2,000 each are eligible for 100% capital allowance and capped at Rm20,000 except for SME.

5:30pm - Go home

5:30pm - Go home

• for advertisement, software and other expenses - determine whether payment made to resident or non-resident company:

• resident - exempted from tax

• non-resident - must determine withholding tax payment ( WHT paid - exempted from tax) ( WHT not paid - add back / taxable expense)

5:30pm - Go home

5:30pm - Go home

10:00am - Join webinar for E-invoicing.

Notes from webinar:

• transmission mechanism for "MyInvoice System":

  • MyInvoice Portal

  • Application Programming Infrastructure (API)

• Consumer is not subject to e-invoice, but can request for tax relief purpose.

• Benefits of e-invoice (long-term):

  • reduces human errors

  • standardization of a single invoicing system in M'sia

  • help keeping proper records

5:30pm - Go home

3:00pm - Make amendment for form B after being reviewed by Manager

5:30pm - Go home

• level of reference by tax agent for tax computation purpose:

  • audited report

  • draft audited report

  • management account

5:30pm - Go home

2:30pm - Online training "Unlock A World of Learning with ProB KMS+!"

Training Management System (KMS)

5:30pm - Go home

• Professional fee

  • service fee + SST = DD

  • printing and stationery + SST = Add Back

• Double Deduction / Special claim / incentives

  • Section 132 - Audit fee + SST + printing and stationery

  • Section 157 - Professional / Secretary / Taxation fee + SST

5:30pm - Go home

• Received one case back from manager and need to amend a little because client amend in PnL, BS and GL.

5:30pm - Go home

• When do analysis on repair and maintenance, upkeep of office - must separate / identify capital (addback) and revenue (exempt) expenses

5:30pm - Go home

5:30pm - Go home

5:30pm - Go home

• Payment to non-resident company are subject to withholding tax.

• CP204 - Tax installment estimate

• Form CP55 - declaration form a taxpayer gives authority to tax agent.

• Form CP600B - change of address application form.

5:30pm - Go home

5:30pm - Go home

5:30pm - Go home

5:30pm - Go home

5:30pm - Go home

• CGT is a gain from disposal of fixed asset which are subject to tax starting from 1st January 2024.

• Example :

  • fixed asset dispose at 01/10/2023

  • gain on disposal received on 15/01/2024

  • Thus, not taxable because dispose before 01/01/2024

• I spent my time today by double checking the CP204 tax installment payment for a few cases that I am working on.

5:30pm - Go home

5:30pm - Go home

5:30pm - Go home

• Hire purchase for Motor vehicle (qualifying expenditure)

  • New + cost RM150,000 below = QE RM100,000

  • 2nd hand + cost RM150,000 above = QE RM50,000

5:30pm - Go home

5:30pm - Go home

5:30pm - Go home

5:30pm - Go home

• Small Value Assets (SVA) = A qualifying assets below RM2,000 each (excluding renovation and electrical installation to premises), which qualify for 100% capital allowances(CA) claim under SVA.

• As the company in a tax payable position, we did not separately disclose CA claims.

• Deduction of interest payable on borrowed money used for business, investment and loans is determined by:

  • if total investment/ loans >= total borrowed money, then the whole interest expense is disallowed (add back)

  • if total investment/ loans < total borrowed money, then only a portion of interest expense is disallowed (add back)

• Portion of interest restricted:

  • (Cost of investment and loans financed by interest bearing borrowed money / Outstanding balance of interest bearing borrowed money at month or year end) X Average interest payable, monthly or annually

• Realised Trade (revenue nature) = taxable/deductible

• Realised Trade (capital nature) = non-taxable/non-deductible

• Unrealised/Realised Trade (capital nature) = non-taxable/non-deductible

• Realised/Unrealised Non-trade (revenue/capital nature) = non-taxable/non-deductible

Fixed assets capital allowance rate:

• Computer / Software = IA(20%) n AA(20%)

• Computer / Office / Equipment / Furniture = IA(20%) n AA(10%)

• SVA = IA(0%) n AA(100%)

• Motor vehicle = IA(20%) n AA(20%)

• Plant / Machinery = IA(20%) n AA(14%)

• Received new case to do tax analysis

Back log case = A buildup of work that needs to be completed.

The main challenge of backlog case is that I need to follow the acts or rules for that particular year that might differ from current year tax treatment, due to the changes in The ITA.

• Public Ruling :

  • YA'2020 to YA'2021 - expenses incurred and paid is treated as double deduction and expenses incurred is treated as add back.

  • YA'2022 and above - expenses incurred is treated as double deduction.

However, this experience enhanced my skills in analysis and tax computation. It also deepen my understanding in tax field.

• I have officially finished tax computation for three consecutive years and it has been submitted to manager for review.

• Since today is the last day, I also prepared some farewell gifts for tax team to show my gratitude and as a thank you for all the experience and opportunity given to me throughout my 6 months internship journey.

One of the significant aspect that I notice here is that the tax treatment/practice on several transaction can differs between branches even if you are in one big organization together. Thanks to the experienced tax professionals at Cheng & Co, I have the opportunity to expose myself to a different aspect of tax regulations and laws, and helped me understands the complexities of tax codes, compliance requirements, and how tax policies are implemented in practice.

4.30 pm : Received tax query reply from client and start to amend accordingly in excel.

QBE 75% rules:

• If cost of preparing plant and machinery exceed 75%, then P&M is included in QBE.

Partial use of building 10% rules:

• If capital expenditure of non-IB part does not exceed 10% of the whole building, then the whole

• I finally finished tax computation on one of the back log case from year 2019.

• Later that day, I received a tax query reply from the client and started to amend the draft tax analysis.

• 4 cases - settled draft analysis and waiting for draft audit report

• 1 case - submitted to manager for review

• 1 case - pending draft analysis

• Amend tax computation after review by manager

• Received new case of active company and start draft out tax analysis

• Continue yesterday's work

• Finishing up tax computation in Brass Tax, for one of the dormant company.

• I vouched supporting document/transaction to tally with tax analysis

• Finished yesterday's work and submit to senior for review.

• Filing document.

• Finishing up another case and submit to senior for review.

• Received another back log case and draft out tax analysis.

• Later, I finished drafting out tax analysis and tax query to be given to client.

• Continue previous work.

• I was given a sales and purchase listing by my manager for year 2019 and I need to analyze/tally those transaction with monthly sales in GL.

• Comment on analysis:

  • The total amount for monthly sales is listing are tally with GL

  • However, there are few transactions that was cancelled or have no value but still count and got figure in sales column

  • There are also few transactions that was added a significant figure/amount which the source is unknown.

• My manager decided to take these problem to the accounting department.

• Supporting documents just arrived at office for one of the case that I am working on. Then, I start to vouch accordingly.

• Respond from accounting department:

  • The random added figure/amount was from trade in transactions

  • The cancelled or no value figure need to be discussed with client.

• Big client's document for previous year assessment was moved first to store for archive.

• Clear up tables and sorting out document for moving purpose.

• Tables and racks are moved today to new office.

• The moving process are unofficially done today, and we are no longer use the old office as of today.