some tough measures in terms of taxes as expected, plans for further fiscal consolidation as well as the right incentives for businesses to prosper and bring Malaysia’s economy back on a stronger footing.
Finance Minister Lim Guan Eng also announced several proposals, including the imposition of excise duty from April 1, 2019 of 40 sen a litre for two categories of ready-to-drink sweetened beverages — those containing more than 5 gm of added sugar or other sweetening agent in 100 ml, as well as fruit and vegetable juices with more than 12 gm in 100 ml.
Lim also announced a rise in the Real Property Gains Tax (RPGT) rate; higher taxes, fees and levies for the gambling sector; and the introduction of taxes for imported services including online services as well as excise duty on sweetened drinks.
“This imposition of taxes (on imported services) will even out the competition between retail shops and online shops, especially online shops owned by foreign companies,” Lim said when tabling the 2019 Budget themed “Credible Malaysia, Dynamic Economy, Prosperous People.”
For companies and for individuals who are not citizens or permanent residents, the RPGT rate goes up to 10 per cent from 5 per cent.
For citizens and permanent residents, meanwhile, the RPGT rate is raised to 5 per cent from zero per cent.
Taxes, fees and levies that have not gone up since 2005 wil be amended, for example the casino duty will increase to RM150 million from RM120 million, with the duty rising to 35 per cent of gross income.
The Government will also launch a special voluntary declaration scheme to give taxpayers an opportunity to voluntarily declare any income not reported for the purpose of taxation, including from offshore accounts.
In addition, Lim said the Government will also review the existing taxes and incentives under various types of legislation to ensure their relevance and reduce revenue leakages.
“To ensure all tax incentives remain relevant and prevent overlap, the Government will also conduct a comprehensive review of more than 130 types of investment support schemes offered by 32 investment promotion agencies,” he said.
The 2019 Budget sees not only new taxes or tax increases, but also tax reductions that would benefit the Government and businesses.
“To continue to promote Malaysia as global leader in the bond and sukuk market, the Government has proposed to extend the reduction of double taxation when issuing bonds under the Ijarah and Wakalah principles, as well as the expenditure borne by a company issuing retail bonds or sukuk for three assessment years starting from assessment year 2019,” he said.
http://www.theedgemarkets.com/article/taxing-it-right-stronger-economy
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
relaks
Isn’t rpgt based on holding duration?
2018-11-02 19:26