2) Investment holding - (charge under 60F/ 60FA)
============================================================
For Type 2 - Investment holding - (charge under 60F/ 60FA)
An investment holding company (IHC) means a company whose activities consist mainly in the holding of investments and not less than 80% of its gross income (whether exempt or not) other than gross income from a source consisting of a business of holding of an investment is derived from the holding of those investments. [subsection 60F(2) of the ITA ]
Further detail please refer to Public Ruling 3/2011
3.Detail Income Statement | ||||||||
2010 | 2009 | |||||||
Income | ||||||||
Rental Income | 900,000 | 900,009 | ||||||
Less: | Agency fees | (18,000) | (18,009) | |||||
Assessment and quit rent | (6,000) | (6,009) | ||||||
Maintenance charges | (15,000) | (15,009) | ||||||
Sinking fund | (1,500) | (1,509) | ||||||
Maintenance and repairs | (20,000) | (20,009) | ||||||
Fire insurance | (4,000) | (4,009) | ||||||
Term loan Interest | (120,000) | (120,009) | ||||||
Water and electricity | (3,000) | (3,009) | ||||||
Gas Installation | (888) | 0 | ||||||
711,612 | 712,437 | |||||||
Interest income | 1,000 | 999 | ||||||
712,612 | 713,436 | |||||||
Administrative expenses | RM | |||||||
1 | Entertainment | 1,000 | 1,009 | |||||
2 | General Expenses | 200 | 209 | |||||
3 | Bank Charges | 30 | 39 | |||||
4 | Subscription | 4,000 | 4,009 | |||||
5 | Electricity & Indah Water | 5,000 | 5,009 | |||||
6 | Insurance | 6,000 | 6,009 | |||||
7 | Medical Expenses | 7,000 | 7,009 | |||||
8 | Office Cleaning | 8,000 | 8,009 | |||||
9 | Printing & Stationery | 900 | 909 | |||||
10 | Postage & Courier | 10,000 | 10,009 | |||||
11 | Petrol | 11,000 | 11,009 | |||||
12 | RoadTax & Insurance | 12,000 | 12,009 | |||||
13 | Maintanance of Motor Vehicle | 13,000 | 13,009 | |||||
14 | Maintenance of Office Equipment | 14,000 | 14,009 | |||||
15 | Rental | 150,000 | 150,009 | |||||
16 | Service Charge - Maintenance | 16,000 | 16,009 | |||||
17 | Salary | 170,000 | 170,009 | |||||
18 | EPF | 18,000 | 18,009 | |||||
19 | SOCSO | 19,000 | 19,009 | |||||
20 | Staff Amenities | 20,000 | 20,009 | |||||
21 | Traveling | 21,000 | 21,009 | |||||
22 | Training | 22,000 | 22,009 | |||||
23 | Telephone | 23,000 | 23,009 | |||||
24 | Depreciation | 24,000 | 24,009 | |||||
25 | Consultancy Fees | |||||||
- Audit Fee | 6,450 | 6,451 | ||||||
- Accounting fee | 6,300 | 6,302 | ||||||
- Secretaries fee | 6,250 | 6,253 | ||||||
- Tax Agent fee | 6,000 | 6,003 | ||||||
575,130 | 575,346 | |||||||
Profit for the year | 136,482 | 137,091 | ||||||
Assume this statement extract from Investment Holding. (Note: Usually business activities would be shown in note 1 to financial statement in audit report). You would take concern only on “permitted expenses” of the item above. Permitted expenses incurred by an IHC consist of:
· directors’ fees;
· wages, salaries and allowances;
· management fees;
· secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage; and
· rent and other expenses incidental to the maintenance of an office.
Where from the Detail Income Statement you may extract:
9 | Printing & Stationery |
10 | Postage & Courier |
17 | Salary |
18 | EPF |
19 | SOCSO |
20 | Staff Amenities |
23 | Telephone |
25 | - Audit Fee |
25 | - Accounting fee |
25 | - Secretaries fee |
And you will apply them into your ITC’s page – [Note1] – Note to Computation
Finally the cover page [ABC/YA2010] - Summary of Tax Liability
[Note: Note to computation should be shown base on information analysis]
Sorry to say that personally not a web profession, I tried variety way to make those display proper, if you realize it could not be shown proper in your side, please leave me a massage, I'll come back to you as soon as possible.Thanks!
