Indirect Tax Alert Anti-Profiteering Regulations - How can Deloitte help?

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Malaysia Indirect Tax 21 June 2018 Indirect Tax Alert Anti-Profiteering Regulations - How can Deloitte help? As covered in our most recent Alert on 6 June 2018, new antiprofiteering rules took effect from 6 June 2018 and now cover the supplies of ALL goods and services. Click here to read the alert. The new Malaysian Government has been very clear in their expectation that the prices of goods and services would decrease from the abolishment of GST, and this sentiment has been reflected amongst the general public. We have already seen action taken by the authorities in querying pricing decisions and issuing notices to a number of our clients.

As we have been contacted by many clients to enquire about how we can help, we have set out below a summary of our general service offering: Part 1: General advice on anti-profiteering requirements Provide slide deck to advise on basic understanding and awareness of Anti-Profiteering Regulations, covering the following areas: New mechanism/formula under the law, to determine unreasonably high profit; Formula on % markup or % margin; and Overview of penalties on non-compliance. Discuss with you on your concerns on the Anti-Profiteering Regulations. Part 2: Review/discuss your computations based on anti-profiteering formula Review up to 5 sample computations prepared by you based on the formulas under the Anti-Profiteering Regulations. Comment on the sample computations reviewed as to compliance with the Anti-Profiteering Regulations. Part 3: Attending to queries/ notice 21 from the State offices of the Ministry of Domestic Trade, Cooperatives and Consumerism ( MDTCC ) Review query/notice 21 raised by State MDTCC. Meet with State MDTCC raising the query/notice to provide you with anti-profiteering technical support. c. Assist to draft holding letter to State MDTCC for time to respond to any query/notice, where required.

d. Assist to draft letter to State MDTCC to respond to State MDTCC query/notice. This may include assistance to prepare slide deck for the purpose of providing the response. e. Review supporting documents provided by you from an antiprofiteering perspective. f. Compile and submit letter/slide deck to State MDTCC together with supporting documents to be provided by you. *Notice 21 is the name of the notice issued by MDTCC under the anti-profiteering law to initiate investigation on anti-profiteering compliance. Part 4: Representation to MDTCC Headquarters Assist in preparing letter/slide deck for making representation to MDTCC HQ on anti-profiteering matters. Meet with MDTCC HQ to provide you with anti-profiteering technical support on anti-profiteering matters. Fee structure Due to the fact that the new regulations impact each business differently, we have adopted flexible billing arrangements (e.g., retainers) or specific task-based engagements as and when required. These can be tailored to your needs. Our Team Since the introduction of the original anti-profiteering rules in 2014, Deloitte has been very active in assisting clients in understanding and complying with the rules, including management and closure of audits. We have a dedicated team of professionals that handles antiprofiteering matters and their contact information can be found below. You are also most welcome to reach out to your usual Deloitte contact.

Deloitte Anti-Profiteering Team Name Email address Telephone Tan Eng Yew Indirect Tax Country Leader etan@deloitte.com +603 7610 8870 Senthuran Elalingam Financial Services Indirect Tax Leader Asia Pacific selalingam@deloitte.com +603 7610 8879 Chandran TS Ramasamy Director Ahmad Amiruddin Ridha Allah Manager Naresh Srinivasan Assistant Manager ctsramasamy@deloitte.com +603 7610 8873 aamiruddin@deloitte.com +603 7610 7971 nasrinivasan@deloitte.com +603 7610 7862 Best regards, Indirect Tax Team Deloitte Tax Services Sdn Bhd Level 16, Menara LGB 1, Jalan Wan Kadir Taman Tun Dr Ismail 60000 Kuala Lumpur Malaysia Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ( DTTL ), its global network of member firms, and their related entities. DTTL (also referred to as Deloitte Global ) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our network of member firms in more than 150 countries and

territories serves four out of five Fortune Global 500 companies. Learn how Deloitte s approximately 264,000 people make an impact that matters at www.deloitte.com. About Deloitte Malaysia In Malaysia, services are provided by Deloitte Tax Services Sdn Bhd and its affiliates. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. 2018 Deloitte Tax Services Sdn Bhd To no longer receive emails about this topic please send a return email to the sender with the word Unsubscribe in the subject line.