malaysia advanced taxation

Build-con Sdn Bhd (Build-con) is a construction company building residential properties. The company has the following transactions with two business entities operating outside Malaysia in 2021 Transaction 1 Build-con acquired a mini tower crane for one of its projects in Johor Bahru from Delco Ltd (Delco), a company operating in Japan for RM330,000. The crane was delivered to Build-con's construction site in September 2021 directly from Delco's inventory kept at DHL warehouse located in Selangor. DHL is a world renown company providing integrated logistics and warehousing services to various customers including equipment manufacturers like Delco. The crane was assembled by Heng Huat Sdn Bhd (Heng Huat), a local engineering firm not related to Build-con. Payment to Delco is due in December 2021 and to be made online. Transaction 2 In October 2021, Build-con engaged Putranto & Partners (Putranto), an Indonesian law firm specialises in real estate industry. . This engagement is for Build-con to get advice from (Putranto) with regard to an ongoing housing development project in Indonesia. This project is managed by a team of engineers recruited in Indonesia. Build-con's legal manager met the partners of Putranto twice in Jakarta. They have also communicated frequently via emails and video conferencing. The firm's senior partners are planning to come to Build-con' office at Damansara in December 2021 to present the final report of this engagement to Build-con's board of directors. The advisory fee is RM180,000 and is due in January 2022. Required Critically discuss the income tax implications Build-con, Delco and Putranto may encounter in Malaysia with regard to the payment for the two business dealings above and advise them the mitigating measures (if any) accordingly. Apply Malaysian tax legislation only in your discussion and advice. Ignore the anti- double taxation agreement (DTA) between Malaysia and the other countries involved. Build-con Sdn Bhd (Build-con) is a construction company building residential properties. The company has the following transactions with two business entities operating outside Malaysia in 2021 Transaction 1 Build-con acquired a mini tower crane for one of its projects in Johor Bahru from Delco Ltd (Delco), a company operating in Japan for RM330,000. The crane was delivered to Build-con's construction site in September 2021 directly from Delco's inventory kept at DHL warehouse located in Selangor. DHL is a world renown company providing integrated logistics and warehousing services to various customers including equipment manufacturers like Delco. The crane was assembled by Heng Huat Sdn Bhd (Heng Huat), a local engineering firm not related to Build-con. Payment to Delco is due in December 2021 and to be made online. Transaction 2 In October 2021, Build-con engaged Putranto & Partners (Putranto), an Indonesian law firm specialises in real estate industry. . This engagement is for Build-con to get advice from (Putranto) with regard to an ongoing housing development project in Indonesia. This project is managed by a team of engineers recruited in Indonesia. Build-con's legal manager met the partners of Putranto twice in Jakarta. They have also communicated frequently via emails and video conferencing. The firm's senior partners are planning to come to Build-con' office at Damansara in December 2021 to present the final report of this engagement to Build-con's board of directors. The advisory fee is RM180,000 and is due in January 2022. Required Critically discuss the income tax implications Build-con, Delco and Putranto may encounter in Malaysia with regard to the payment for the two business dealings above and advise them the mitigating measures (if any) accordingly. Apply Malaysian tax legislation only in your discussion and advice. Ignore the anti- double taxation agreement (DTA) between Malaysia and the other countries involved