New Guidelines for Property Developers & Construction Companies

Course Content

The much-awaited Income tax (Property Development and Construction) Regulations are finally gazetted to complement the Public Ruling for Property Development and Construction Contracts.  The workshop will discuss the salient features of the Regulations and analyse the differences between the Regulations and the Public Ruling and practical issues that may be encountered.  The speaker, with his vast practical experience in both professional and corporate sector will discuss the following issues:

Date of commencement of business for property developers and contractors
- Date of purchase of land
- Date of submission of development plan

Percentage of completion method vs. progressive payment method
- Accounting vs. tax method of recognition
- Revision of estimated profits/loss
- Recognition of estimated loss for low cost housing projects

Date of completion of the project for tax purposes
- Recognition of actual profit
- Recognition of actual loss

Revision of past years of assessment
- How many YAs to revise
- Tax implications arising from the revision

Tax treatment and implications for:
- Estimated loss of a project
- Carry back of losses
- Deduction of expenses incurred during the defect liability or warranty period
- Interest expense
- Guarantee fees
- Transfer of asset from fixed asset to stock-in-trade

Comparison of the “Public Ruling for Property Development and Construction Contracts” and the “Income Tax Property Development and Construction Regulations” 
- Date of commencement
- Treatment of estimated loss
- Carry back of losses
- Defect liability or warranty expenses

Public Ruling on Withholding tax on Special Classes of Income
- Technical vs. non-technical fees
- Payments to related companies – subject to withholding tax?
- Reimbursement/Disbursement/OPE – subject to withholding tax?
- Withholding tax borne by resident on behalf of non-resident – deductible?
- Payments exempted from withholding tax

Speaker’s Profile

Mr Chow Chee Yen is a Fellow Member of ACCA, a Fellow Member of MIT and a Chartered Accountant of MIA (CA).He is also a graduate of MICPA Examinations and successfully completed the Certified Financial Planner (CFP) conversion programme.

He is currently the Executive Director of Advent Tax Consultants Sdn Bhd and was an Associate Director of an international firm. In addition, he was also attached with PricewaterhouseCoopers and Arthur Andersen Kuala Lumpur, specialising in corporate taxation. He has more than 16 years of tax experience and was involved in tax engagements concerning cross border transactions, tax due diligence review, restructuring schemes, corporate tax planning, group tax review and inbound investments.

Chee Yen’s expertise is in high demand and he is a prolific trainer /facilitator for tax workshops and seminars and in-house training for both professional firms and corporations.  He is also a regular speaker in conferences organised in Hong Kong and Singapore.

In addition, he has been lecturing in various colleges and university in the Klang Valley for the past 13 years, specialising in taxation papers for professional examinations. He was also the Chief Examiner for a taxation paper of a professional examination bodies. Chee Yen is also an editorial member of the Annual Budget Commentary and Tax Information Booklet jointly published by the professional bodies and has written books on Malaysian taxation for Commerce Clearing House (CCH).