Business Recruitment Costs Quiz

Questions and Answers

Which of the following expenses is NOT considered an allowable expense for recruitment?

Advertising for job vacancies.

Internal training programs. (correct)

Participation in job fairs.

Payment to employment agencies.

Which statement correctly describes the tax treatment of pre-commencement recruitment expenses?

They are chargeable to tax regardless of the amount spent.

They can be deducted without any limitations or qualifications.

They are calculated as part of the company's annual profits.

They can be deducted under specific conditions. (correct)

Which condition must be met for employee recruitment expenses to be deductible?

Expenses must be incurred after the commencement of business.

Expenses should be related to training grants from the government.

Expenses must be for the recruitment of employees for business commencement. (correct)

Expenses need to be invoiced in the financial year they are incurred.

Which of the following expenses is deductible under section 33 of the ITA 1967 for a company incorporated in Malaysia?

Cost of feasibility study Signup and view all the answers

What is a requirement regarding training grants for the deductibility of recruitment expenses?

The company must not receive training grants from the government. Signup and view all the answers

What is a prerequisite for claiming recruitment expenses for a business commencing operations?

Expenses must be incurred within one year prior to recruitment Signup and view all the answers

Which type of company is eligible to claim establishment and recruitment expenses?

Companies incorporated under the Companies Act 1965 in Malaysia Signup and view all the answers

How should recruitment expenses incurred prior to business commencement be treated in terms of tax?

They should be deducted in the year incurred. Signup and view all the answers

Which recruitment expenses can be considered as establishment expenses for a company?

Costs related to market research and feasibility studies Signup and view all the answers

Which of the following is NOT considered a deductible recruitment expense?

Cost of employee training programs prior to recruitment Signup and view all the answers

Which of the following conditions must be satisfied for a company to deduct recruitment expenses?

The company must submit an application for the Islamic stock broking business Signup and view all the answers

Which of the following can be categorized under pre-commencement expenses for company recruitment?

Costs associated with recruiting events. Signup and view all the answers

What is the implication of not claiming double deduction for approved training expenses?

The company is eligible for single deduction of expenses. Signup and view all the answers

What is a requirement for any individual to claim a deduction for payroll taxes?

They must have business income Signup and view all the answers

Which of the following best describes a pre-commencement expense requirement?

It should be incurred within one year before starting the business. Signup and view all the answers

What type of company is specifically mentioned as eligible for single deduction of establishment expenses?

Islamic stock broking companies Signup and view all the answers

What percentage of an employee's remuneration is considered in the EPF and PRS contributions?

19% Signup and view all the answers

What type of deduction applies to payroll tax expense paid on behalf of an employee?

Single deduction Signup and view all the answers

Which expense related to business income is not deductible?

Any turnover tax paid Signup and view all the answers

When was the application for the approval of an Islamic stock broking business made eligible?

From September 2, 2006 to December 31, 2009 Signup and view all the answers

Which of the following is NOT related to employee remuneration expenses?

Capital expenditures Signup and view all the answers

For which type of employee income is the payroll tax expense deductible?

All employees Signup and view all the answers

Which of the following expenses can be categorized as a single deduction for business income?

Payroll tax expense Signup and view all the answers

What does N/A stand for in the context of the deductible expenses?

Not Applicable Signup and view all the answers

Study Notes

Recruitment Expenses

Costs incurred within one year prior to business commencement are deductible.
Single deduction applies for head-hunter fees if related to recruitment expenses.
Deductible under section 33 of the ITA 1967 if they meet the specified conditions.

Company Eligibility for Claims

Must be incorporated in Malaysia.
Must be licensed under the Securities Industry Act 1983.
Must be a resident company.

Establishment Expenses for Islamic Stock Broking Companies

Incurred establishment expenditures are eligible for single deductions.
Must apply for approval of the Islamic stock broking business between September 2, 2006, and December 31, 2009.
Includes costs for feasibility studies and market research related to the business setup.

Contributions to Employee Provident Fund (EPF) and Private Retirement Schemes (PRS) for employees are deductible.
Payroll tax expense paid on behalf of employees is deductible for chargeable income.

Pre-commencement Business Training Expenses

Training expenses incurred up to one year before the business starts can be deducted.
Must meet specific qualifying conditions under section 33 of the ITA 1967.
Must not be receiving government training grants or claiming double deductions for approved training expenses.

Job Fair Participation

Expenses related to participation in job fairs and payments made to employment agencies for recruitment can be deductible as pre-commencement expenses.

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Description

Test your knowledge on the financial deductions related to recruitment and commencement of business. This quiz focuses on the expenses incurred prior to hiring head-hunters and employees. Understand the implications for your business accounting.