Image credit: frank mckenna @ Unsplash What Does "Related Company" Mean in Malaysia? Ask three different people what "related company" means in Malaysia, and you might get three different (and correct) answers. Your company secretary might point you to the Companies Act. Your accountant might mention a 20% shareholding rule. And if you've recently dealt with e-invoicing, you've probably seen LHDN ask you to tick "yes" or "no" on the spot, with no clear explanation of what counts. Malaysian...

Image credit: brooklyn @ Unsplash In plain English: an associate company is one where your company hold a minority stake. But you still have real say in how it's run. You don't have full control. But you do have influence. Think of it this way. A subsidiary is your kid. You call the shots, you're responsible for it, and when it comes time to do the family photo (the consolidated financial statements), you're in the frame. An associate company is more like a business partner you've got a real...

Image credit: Markus Winkler You hire a foreign consultant to help with your business. They do the work. You pay the invoice. Everyone's happy. Then your accountant calls. "Did you withhold tax on that payment?" Huh what? I’ve got you. Welcome to withholding tax. Let's get you up to speed. What is witholding tax? Withholding tax is exactly what it sounds like. You withhold a portion of the payment you're making, and hand that portion to LHDN instead of the person you're paying. Think of it as...