MALAYSIA Law and Practice Contributed by: Dilys Tan, Adnan Sundra & Low
7.5 Obtaining Legal Opinions In Malaysia, tax opinions are obtained for secu - ritisation transactions from the tax adviser. 8. Accounting Rules and Issues 8.1 Legal Issues With Securitisation Accounting Rules Common issues that may arise in connection with accounting rules that apply to securitisa - tion transactions in Malaysia include: • the treatment of the transfer of the assets as a true sale; • the originator’s off-balance sheet treatment; and • the consolidation of the SPE for account - ing purposes into the originator’s group of companies. 8.2 Dealing With Legal Issues In Malaysia, accounting issues are addressed by accountants, and lawyers do not give legal opinions in this respect.
Furthermore, any balancing charge or allowance under Schedule 3 of the Income Tax Act 1967 of Malaysia arising from disposal of fixed assets is deemed to have been made in the basis period for a year of assessment that relates to the peri - od of the securitisation transaction, in accord - ance with a prescribed formula. 7.3 Withholding Taxes In general, interest payable to a non-resident is subject to withholding tax at the rate of 15% (or such other rate as prescribed under the relevant tax treaty between Malaysia and the country where the non-resident is a tax resi - dent). However, an exemption exists for interest income earned by non-residents from ringgit- denominated corporate bonds/sukuk approved or authorised by (or lodged with) the SC. It is to be noted that such exemption does not apply to interest accruing to a place of business in Malay - sia of the non-resident and to interest paid or credited to a company within the same group of companies. 7.4 Other Taxes In Malaysia, law firms do not typically advise on tax matters. Advice is usually given by the tax advisers appointed for the securitisation trans - action.
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