Finance

Highlights of Budget 2014 – Real Property Gains Tax (“RPGT”)

Posted in Blog, Finance

Highlights of Budget 2014 – Real Property Gains Tax (“RPGT”)

RPGT is a tax imposed on gains from disposal of all types of properties such as residential and commercial buildings, land and shares of real property companies. RPGT is imposed on the net gains from disposal of property after deducting the following costs:- Acquisition price Stamp duty Legal fees Renovation costs Commission for sales and administrative payments For Malaysian citizens and permanent residents, RPGT is exempted for the disposal of one residential property once in their lifetime. Further, RPGT is also not imposed on gains from disposal of property between:- Husband and wife...

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Highlights of Budget 2014 – Corporate Income Tax

Posted in Blog, Finance

Highlights of Budget 2014 – Corporate Income Tax

In Malaysia, a corporate covers the following entities:- Company, both private and public Trust body Executor of an estate of an individual domiciled outside Malaysia at the time of his death Receiver appointer by the court Limited liability partnership The current fixed income tax rate is 25% on the Chargeable Income of the corporate. However, specific to the company with paid-up capital of up to RM2.5 million (referred to “SME”s), the tax rates are as follows:- 20% on Chargeable income up to RM500,000; and 25% on the remaining Chargeable income. In this Budget, the proposal is to reduce 1%...

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Highlights of Budget 2014 – Individual Income Tax

Posted in Blog, Finance

Highlights of Budget 2014 – Individual Income Tax

Effective Year of Assessment 2015 (meaning from 1 January 2015 onwards), the tax rates for individual residents of Malaysia shall be reduced by 1% to 3% as follows:- The above proposal is to increase disposable income, and in line with the implementation of GST. This tax structure, according to the Budget 2014, is more competitive and progressive, and with the aim to retain and attract talents back into the country. For non-resident individuals, income tax rate shall be reduced by 1%, from the current 26% to 25%. Special Relief Further to the above reduction on tax rates, an additional...

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Types of GST – Illustrations

Posted in Blog, Finance

Types of GST – Illustrations

Following our earlier article describing different types of treatment for GST, below are illustrations on each type of...

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GST Requirements & Penalties in Malaysia

Posted in Blog, Finance

GST Requirements & Penalties in Malaysia

Previously, we discussed What is GST in Malaysia. Click on the bolded link to read. Registration on GST Before we move into the registration and requirements on GST, let me recap the qualification criteria. All businesses will fall within the scope of GST unless they are specifically defined as zero-rated, exempt or out-of-scope. The prescribed threshold is RM500,000 of annual turnover. For those that fall below this prescribed threshold, it will me voluntary registration, whereas those that exceed this amount, it is a mandatory registration. GST Filing The documents that is used to submit...

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Goods and Service Tax (GST) in Malaysia

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Goods and Service Tax (GST) in Malaysia

GST has been a taboo word in Malaysia for the past few years as there have been numerous speculations as to when and how GST will be implemented in Malaysia. As this article is being written, the Malaysian government could have well started implementing GST in a testing stage, and probably be expected to roll out nationwide by 2015. GST is nothing new in this region, and definitely not a new tax in Malaysia. It replaces the current Sales Tax and Service Tax systems. In certain other countries, GST is also known as Value Added Tax (VAT). Globally, the indirect taxes trend is moving upwards,...

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