Posted by Stocksafeplayer > 2021-10-29 23:10 | Report Abuse

Agree @greatinvestor….LKT used to say ‘good to be able to pay tax cos this means the group is profitable’ he he

Posted by 1invest1 > 2021-10-29 23:45 | Report Abuse

Sharefisher, my friend who leads the accounts & finance of a PLC answers with a no, cannot reduce tax with a higher dividend.

Sharefisher, your thought is good for all, but cannot be.

Posted by emsvsi > 2021-10-30 00:05 | Report Abuse

The losses in 2020 and 2021 will be carried forward and set-off against any profits in 2022. The Cukai Makmur will therefore only affect those companies who have made strong profits during the pandemic and whose profits will exceed 100mil in 2022

Posted by surewinbaby > 2021-10-30 00:13 | Report Abuse

Genting have estimated huge business loss RM 2 Billion (due to pandemic) carried forward to offset 2022 profit. Hence, this makmur tax not applicable for Genting.

Posted by kimi66 > 2021-10-30 00:46 | Report Abuse

yes, malaysia tax law allow carry forward losses to offset future profitable income for tax deduction. Genting huge losses in 2020 and 2021 can be used in 2022 onwards.

The budget even extend the allowable carry forward period from 7 year to 10 year.

Posted by kimi66 > 2021-10-30 00:50 | Report Abuse

Let say if genting 2022 profit doesn't exceed the cumulative losses of 2020/2021, then any unused remaining losses can be used/carried forward into profitable 2023 year of assessment and so on...

Posted by Sharefisher > 2021-10-30 06:09 | Report Abuse

Thanks everyone for the inputs... I think genting is getting more benefits under this budget, especially on the supports for tourism and entertainment shows. Anyway, I am sure some of us will top up if price drops big big on Monday.

Posted by Serious > 2021-10-30 06:22 | Report Abuse

Is it correct to say that the Cukai Makmur of 33% above 100 million is a one-off assessment for year 2022 and not perpetual beyond?

Posted by Stocksafeplayer > 2021-10-30 06:32 | Report Abuse

https://www.malaymail.com/news/malaysia/2021/10/29/budget-2022-putrajaya-introduces-one-off-windfall-tax-on-companies-earning/2016977

above news says one-off

Posted by Sharefisher > 2021-10-30 07:37 | Report Abuse

New Stamp duty and trading fee, good for market in long run. Bursa is moving away from being considered as casino over the years......it should be the way.

Posted by choysun > 2021-10-30 12:02 | Report Abuse

Yeap, Makmur is for Year Assessment 2022, meaning profits from 2021. So those profiting during pandemic period will need to make that one time extra tax contribution I suppose.

Posted by 1invest1 > 2021-10-30 12:56 | Report Abuse

Maybe
knee-jerk reaction sell-down of other stks
Lead to buying into Genting Bhd stk.

Posted by choysun > 2021-10-30 13:15 | Report Abuse

Maybe knee-jerk on Genting as well? Some of us here waiting to top up more :)

Posted by Junichiro > 2021-10-30 14:07 | Report Abuse

Qtr results only shows results at group level. But tax is based at company level not at group level

Posted by Junichiro > 2021-10-30 14:21 | Report Abuse

Genting's 2020 annual report shows that : at company level, Genting actually made a profit of 741.8 million taxed 60.7 million leaving a profit of 681.1 million.

That is for 2020. As for 2021, I can guess that at company level, it has probably made over 1 billion before tax. Its revenue is from dividend income from all its subsidaries n management fees from all its subisidaries.

That is why Genting is financially sound.

Posted by Junichiro > 2021-10-30 14:24 | Report Abuse

As a comparison, in 2019 Genting, at company level profit is 1.8 billion.

Posted by Junichiro > 2021-10-30 14:29 | Report Abuse

Sori, an error in the last posting. In 2019 Genting , at company level, made a profit of 1.2 billion taxed 150 million leaving a profit of 1 billion.

Posted by Junichiro > 2021-10-30 14:34 | Report Abuse

"As for 2021, I can guess that at company level, it has probably made over 1 billion before tax. Its revenue is from dividend income from all its subsidaries n management fees from all its subisidaries."

Correction:-

I would like to correct the above posting. Unless, its subsidaries increase their dividend payment, the profit at company level is probably the same as that in 2020.

Posted by apple168 > 2021-10-30 16:43 |

Post removed.Why?

Posted by OnTime > 2021-10-30 16:49 | Report Abuse

No Profit No Tax!

Posted by JBond007 > 2021-10-30 16:54 | Report Abuse

Haha...the more u checked the more confusion u will create to our readers. Moreover Genting has a 100% subsidiary, Resorts World Las Vegas that opened on 26 Jun 2021. Almost impossible to make a linear link to previous results of 2019 & 2020.
But the core M'sia operation of GenM is much easier to understand, unabsorbed business losses in current fiscal year can be carry forward to next fiscal year. There must be a reason why all Genting comrades unanimously think the same.

Posted by emsvsi > 2021-10-30 17:14 | Report Abuse

Dividends and foreign income are not taxable

Posted by drkelvin20 > 2021-10-30 17:25 | Report Abuse

I https://www.malaymail.com/news/malaysia/2021/10/30/budget-2022-cukai-makmur-reflects-spirit-of-shared-prosperity-says-deloitte/2017140

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz, when tabling Budget 2022 yesterday, announced a one-off Cukai Makmur on companies that make more than RM100 million in profit for the year of assessment 2022.

Guys, it is for year of assessment 2022, which mean targetting profit earned during Financial year 2021...
For GENM, i think it will not apply at all due to huge losses incurred in the 20/21...
For GENB, i think it is not much affected, as generally its not doing very good in Financial year 20/21, plus possible unused tax losses brought forward from 2020-2021 , that can be used to offset tax payments.


I think glove stocks would be badly affected because of huge profit in FY 20/21.

Just my opinion, I may be wrong.... not a buy call or sell call...

Anyone can elaborate more on this assessment year and financial year...someone can correct me, if I am wrong....

Have a nice weekend.

Posted by Junichiro > 2021-10-30 17:47 | Report Abuse

Group accounts are all artificial. Since all Genting's subsidiary companies are limited companies, Genting does not have the means to touch their cash unless these companies declare dividends to Genting or pay licensing fees, management fees to Genting. All limited companies are separate legal entities. So the tax is actually on the dividends, fees... Genting receives. That is the reason why the law requires it to show also their results at company levels. It is the same for all other companies.

Posted by Junichiro > 2021-10-30 17:54 | Report Abuse

On offsetting unabsorbed losses, the subsidiary companies of Genting which incurred the losses will offset it with tax liabilities that they have. If it is a foreign subsidiary, then they can offset it with tax of the foreign country, a different set of tax laws but basically the same principles apply.

Posted by Junichiro > 2021-10-30 18:28 | Report Abuse

I obtained breakdown figures for its revenue ; in 2020, management fees-308.6 million tax rate 24% tax app 74 million

in 2019, management fees 698.1 million tax approx 167 million

@emsvsi is correct, dividend income for Genting Bhd not taxable but management fees, lincesing fees ... are taxable.

All in all, Genting not much affected.

Posted by JBond007 > 2021-10-30 18:57 | Report Abuse

@Junichiro....Fully understand already. Thank you for the extra works.
You are truly our auditor.

Posted by Junichiro > 2021-10-30 19:04 | Report Abuse

I am already out of date. I started my working life in an auditing firm way back in the early 1980s. Much have already changed in the accounting field but the basic principles remain. Sorry for so much confusion.

Posted by DestinyL > 2021-10-30 19:08 | Report Abuse

Monday can queue, Choysun, hip hip hooray!

Posted by emsvsi > 2021-10-30 19:44 | Report Abuse

Seven key initiatives to revive tourism sector

October 29, 2021 19:14 pm +08

KUALA LUMPUR (Oct 29): Seven key initiatives, involving a total value of RM1.6 billion, will be implemented next year to revive the tourism sector, which has been badly affected by the Covid-19 pandemic.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said it included the Wage Subsidy Programme, which specifically targets tourism operators whose income dropped by at least 30%.

"With an allocation of RM600 million, this initiative will benefit more than 26,000 employers and 330,000 employees," he said when tabling the 2022 Budget in the Dewan Rakyat on Friday.

He said the government is also allocating RM600 million as specific financing for the tourism sector under PENJANA Tourism Financing and BPMB Rehabilitation Scheme; RM85 million in special assistance to more than 20,000 tourism operators registered under the Ministry of Tourism, Arts and Culture (MOTAC) for a period of three months; and RM50 million for maintenance of tourism infrastructure, including the Sultan Abdul Samad Building and Lembah Bujang in Kedah.

A sum of RM30 million is allocated in matching grants for repair of 738 budget hotels that are registered under MOTAC as well as for registered home stay owners, RM50 million in matching grants to companies to organise arts and culture-related programmes, and RM60 million in incentive funds for activities to promote domestic tourism.

Meanwhile, Tengku Zafrul said special individual income tax relief for domestic tourism expenses of up to RM1,000 will be extended until the year of assessment 2022.

He said the government will intensify efforts to promptly revive the international health tourism industry to strengthen Malaysia's position as a preferred health tourism destination with an allocation of RM20 million to the Malaysia Healthcare Travel Council.

"The government also plans to extend several tax incentives including income tax exemption to organisers of arts and cultural activities, as well as international sports and recreational competitions until the year of assessment 2025," he added.

Meanwhile, he said the exemption on entertainment duty, including for theme parks and cinemas in all federal territories, and the tourism tax exemption will be extended until Dec 31, 2022.

He also suggested for state governments to also provide exemption on entertainment duty to support the recovery of the sector.

Link: https://www.theedgemarkets.com/article/seven-key-initiatives-revive-tourism-sector

Posted by Sharefisher > 2021-10-30 19:46 | Report Abuse

Thanks everyone for the inputs again... We have great people here in this forum.

Posted by Junichiro > 2021-10-30 20:11 | Report Abuse

@apple168 - Genting is financially sound. Makmur Tax does not affect Genting. By the time, normalisation takes place, Makmur tax would be gone. That is when Genting is making big money.

Posted by Sharefisher > 2021-10-30 20:26 | Report Abuse

Junichiro... Looks like you are new here.. This apple and shareinvestor88, you can skip their comments.. Haha ha..

Posted by choysun > 2021-10-30 23:19 | Report Abuse

This is a nice walkthrough of RWLV with a touch of history as well.
https://youtu.be/GkDI1tfYAqs

Posted by Stocksafeplayer > 2021-10-31 13:16 | Report Abuse

We can see some govts like US, China making sure that in future any catatrophic pandemics would not be ‘at mercy’ of some business owners who managed to capitalise & benefitted HUGELY from this tragic pandemic.

I won’t be surprised if those western n asian govts would already planned ahead to ensure no more shortages of masks, gloves, PPC, etc going forward. So, invest with care :)

Posted by mani_cum > 2021-10-31 13:39 |

Post removed.Why?

Posted by cn21 > 2021-10-31 13:50 | Report Abuse

https://www.youtube.com/watch?v=VerDkL1NnTM&ab_channel=%E4%B9%94%E6%B2%BB%E9%BA%BB%E9%BA%BB%E7%9A%84%E6%97%A5%E5%B8%B8%2FGeorgemamaVlog

云顶的夜生活真精彩！连友族同胞都在酒吧街吃饭， Genting Highlands High line night life is back! Crowded conditions

Posted by Keyman188 > 2021-10-31 13:52 | Report Abuse

Really fortunate...Keyman188 had managed to pare down 40% shareholding of overall long term position since 2nd half of Sept until now...

Keyman188 diverted investment funds to "other market"...

Be frankly speaking...

Keyman188 really not so favourable the latest 2022 Budgetary...

Unexpected GOM will implement "Cukai Makmur" for those RM 100 mil above...

Unexpected GOM will remove stamp duty capping by RM 200 & increase the duty by 50% from 0.10% to 0.15%...

Since "Cukai Makmur" already tabled at Parliament...you think upcoming year by year will continue !!! (We don't know but high possibility since Natioanal debt now stood at RM 1.25 trillion pre-budgetary announcement)...

Keyman188 will further pare down shareholding by upcoming weeks until local equities to 30% ~ 35% holding since Keyman188 managed to strike cheapest entry price last year during pandemic...

Furthermore...current local equities valuation really not so attractive if comparing other market peers...


Beside valuation...other "factors" also not so favourable since slowly slowly emerged on the table...




~~~~~~~~~~~~~~Always remember, plenty of choice~~~~~~~~~~~~~~~~

Posted by Keyman188 > 2021-10-31 14:19 | Report Abuse

Let us review the latest corporate tax rate in the region (follow by highest to lowest)...

Malaysia = 33% (2022 assessment)

Australia = 30%

Philipines = 30%

Japan = 29.74%

South Korea = 27.50%

China = 25%

Indonesia = 25%

Myanmar = 25%

Taiwan = 20%

Thailand = 20%

Vietnam = 20%

Brunei = 18.50%

Singapore = 17%

Hong Kong =16.50%

Macau = 12%


^^Don't forget...RM 100 mil profit PLC considered very minimal & acceptable for investment targeting...

Posted by Stocksafeplayer > 2021-10-31 15:27 | Report Abuse

To be fair, I don’t think we hve accurate data on various tax schemes in other countries for corporates for 2022 yet.
May subject to changes. Anyway, as long as GenB & GenM not ‘badly affected’ like others …

Posted by jasonred79 > 2021-10-31 15:56 | Report Abuse

Either Genting makes normal amount of profits and doesn't pay income tax for maybe 2022 + 2023... or genting makes such massive profits due to pent up demand that they end up qualifying for cukai makmur.

Well, if Genting Berhad makes so much profit in 2022 tax assessment year that they wipe out the accumulated pandemic losses and go on to trigger Cukai Makmur... I'LL TAKE THAT!!! ... I WILL GLADLY CHOOSE THAT OPTION, YES PLEASE!!!

Posted by jasonred79 > 2021-10-31 15:57 | Report Abuse

Stocksafeplayer: I'm hoping that GenB and GenM do well enough to be badly affected! LOL!!! Hopefully such a bumper profits year that they pay the highest tax in Malaysia, higher than Maybank and public bank (but that's not gonna happen)

Posted by Stocksafeplayer > 2021-10-31 16:15 | Report Abuse

Ha ha @jasonred… Please correct me if I am wrong. I thought GenM already been imposed 35% casino revenue (much higher than one-off cukai makmur 33% ) & increased 30% tax on gaming machines etc based on news below,

https://www.thestar.com.my/news/nation/2019/02/28/genting-accepts-increase-in-gaming-taxes/

Posted by DestinyL > 2021-10-31 16:25 | Report Abuse

Tomorrow shoot some bullets!

Posted by jasonred79 > 2021-10-31 16:37 | Report Abuse

SSP: Gaming tax is actually a much bigger problem, and I'm glad that we had cukai makmur instead of an increase in gaming tax. "The casino duties have been raised to 35 per cent from 25 per cent of gross gaming revenue. Further, gaming machine duties was increased from 20 per cent to 30 per cent on gross collection." -> those are on GROSS COLLECTION, not the profits Which means those still apply even if Genting is loss making. ... same for the RM150m casino license fee.
So it's not like Genting doesn't have some problems, but fortunatly Cukai Makmur isn't one of the problems.

I was advised that Genting Plantations is probably going to be hit by Cukai Makmur, but, as I said, that's cause their upcoming tax year will have a fat juicy profit, so they're still better off anyhow!

Posted by Tobby > 2021-10-31 16:44 | Report Abuse

Genting won't be affected by 33% one off corporate tax! No hike in gambling tax! Basically, nothing changes!

Posted by emsvsi > 2021-10-31 17:08 | Report Abuse

Cases 4979 on 31/10/21
Deaths 44 on 30/10/21

Mankind has won

Posted by apple168 > 2021-10-31 18:14 |

Post removed.Why?

Posted by choysun > 2021-10-31 18:34 | Report Abuse

Premium Outlet was packed. Queues at certain stores to go in. Even restaurants had to queue. Didn't go into casino but traffic on top was pretty slow. Next weekend gonna worse. Look forward for SkyWorld to open.

Posted by Keyman188 > 2021-10-31 18:37 | Report Abuse

Cukai Makmur, stamp duty changes may dampen near-term market sentiment, says Malacca Securities

(October 31, 2021 18:16 pm +08)

## https://www.theedgemarkets.com/article/cukai-makmur-stamp-duty-changes-may-dampen-nearterm-market-sentiment-says-malacca-securities



Upcoming trading period foresee unavoidable heading selling pressure...

No matter as short term players...contra traders...mid-long investors...we need to accept the real fact...

Is it the time to reconsider diversification !!!...

Is it the time to revamp your long term investment portfolio !!!...