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The Malaysian Tax System - Partnerships

Updated: Feb 12, 2023


A partnership is not considered a person under the law and is not treated as a separate and distinct entity for taxation purposes.  But, a partnership is still required to file an income tax return.


The Partnership Act 1961 was enacted in Malaysia to regulate partnerships.


According to section 3(1) of the Partnership Act 1961, a partnership is a “relationship which subsists between persons carrying on a business in common with a view to profit.


根据法律规定,合伙企业不被视为一个人,在税收方面也不被视为一个独立的实体。但是,合伙企业仍然需要申报所得税。


马来西亚颁布了《1961年合伙企业法令》来规范合伙企业。


根据《1961年合伙企业法令》第3(1)条,合伙企业是一种 "以盈利为目的而共同开展业务的人之间存在的关系。“


Definition of Partnership for Tax Purposes | 合伙企业在税法上的定义

Under s 2 of the Income Tax Act 1967, "partnership" is defined as:

an association of any kind (including joint adventures, syndicates and cases where a party to the association is itself a partnership) between parties who have agreed to combine any of their rights, powers, property, labour or skill for the purpose of carrying on a business and sharing the profits therefrom, but excludes a Hindu joint family (https://www.ccs-co.com/post/what-is-a-hindu-joint-family) although such a family may be a partner in a partnership, a limited liability partnership and any association which is established pursuant to a scheme of financing in accordance with the principles of Syariah.


“合伙”一词的起源

英文词“partnership”起源于拉丁语动词“partiri”,意即“分享”或“分割”,后被引入英语并演变成为“partner”,意即一人与另一人形成商业或个人关系方面的联合或联系。


从这个意义上说,“partnership”与中文词“合伙”含义相同。


中文词“合伙”由“合”字和“伙”字组成,“合”即“合并”或“联合”,“伙”即“伙伴”。


根据《1967年所得税法令》第2条,"合伙企业"被定义为:

任何类型的协会(包括合资经营、联合组织和协会一方本身就是合伙企业的情况),各方同意将他们的任何权利、权力、财产、劳动或技能结合起来,以开展业务并分享由此产生的利润,但不包括印度教联合家庭,尽管这种家庭可能是合伙企业的合伙人、有限责任合伙企业(LLP) 和根据符合伊斯兰教法原则的融资计划而建立的任何协会。

When determining who is responsible for paying income tax, it is essential to distinguish between "individuals" and "persons." The latter word has a broader meaning since, in addition to persons, it also covers other legal entities, such as companies incorporated under the Companies Act 2016 and Hindu joint families. However, partnerships are not included in this definition.


A partnership, in contrast to a company (incorporated under the Companies Act 2016) or limited liability partnership incorporated under the Limited Liability Partnerships Act 2012 [Act 743], is not considered a separate legal entity in the eyes of the law, nor is it considered to be a chargeable person for the purposes of taxation.


在确定谁有责任支付所得税时,必须区分 "个人 "和 "纳税人"。后一个词有更广泛的含义,因为除了人之外,它还包括其他法律实体,如根据《2016年公司法令》成立的公司和印度教联合家庭。然而,合伙企业并不包括在这个”纳税人“的定义中。


与在《2016年公司法令》下成立的公司或根据《2012年有限责任合伙公司法令》[第743号法]下成立的有限责任合伙公司相比,传统的合伙企业在法律上不被视为一个独立的法律实体,也不被视为纳税人。


Residence status of Partners

The standard provisions are applicable under section 7 of the Income Tax Act of 1967 for individuals and section 8 of the Income Tax Act of 1967 for companies are used to assess a partner's residential status for tax purposes.


If the partnership's business activities are carried out in Malaysia, then the partners’ share of profits would be subject to Malaysian income tax.


合伙人的税务居民身份

《1967年的所得税法令》第7条用于评估个人以及第8条用于评估公司税务居民身份的规定,也适用于评估合伙人的税务居民身份。


如果合伙企业的商业活动是在马来西亚进行的,那么合伙人的利润份额将被征收马来西亚所得税。

Public Rulings | 公共裁决

The Inland Revenue Board (IRB) has released Public Ruling No. 7/2021 on "Partnerships Taxation Part I – Determination of the Existence of a Partnership" to guide on determining whether or not a partnership exists for the purposes of the income tax.


According to the Partnership Act of 1961 and the Income Tax Act of 1967, the public ruling provided a list of the features of a partnership and the elements that should be examined when deciding whether or not a partnership exists.


The public ruling includes a list of questions that should be answered to determine whether or not a partnership exists.


Para 6.3 of The public ruling explains the differences between a co-ownership and a partnership.


For a better understanding, Public Ruling No. 7/2021 and Public Ruling No. 8/2021 on "Partnerships Taxation Part II - Computation and Allocation of Income" are to be read together.

内陆税收局局(IRB)发布了第7/2021号,关于 "合伙企业税税第一部分 -- 确定合伙企业的存在 "的公共裁决,以指导纳税人以缴纳所得税为目的,确定合伙企业是否存在。


根据《1961年的合伙企业法令》和《1967年的所得税法令》,此公共裁决提供了一份合伙企业的特征清单,以及在决定合伙企业是否存在时应审查的要素。


此公共裁决也包括一份为确定合伙企业是否存在而应回答的问题清单。


公共裁决的第6.3段也解释了共同所有权和合伙企业之间的区别。


为了更好地理解,第7/2021号公共裁决和第8/2021号公共裁决关于 "合伙企业税收第二部分--收入的计算和分配"应一起阅读。


Public Ruling No. 7/2021 on "Partnerships Taxation Part I – Determination of the Existence of a Partnership"

Public Ruling No. 7-2021
.pdf
Download PDF • 300KB

Public Ruling No. 8/2021 on "Partnerships Taxation Part II - Computation and Allocation of Income"

Public Ruling No. 8-2021
.pdf
Download PDF • 437KB

Reference

We have written some articles on partnership accounts that you might find helpful: 1. Partnership Accounts


2. Partnerships In Malaysia - Theory







8. Taxation of Partnerships - Capital Allowance


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