This website uses cookies to ensure you have the best experience. Learn more

Malaysia Goods And Services Tax Essay

2824 words - 12 pages

On 10th October 2014, Dato’ Sri Najib Tun Razak, a Prime and Finance Minister, unveiled Budget 2015 addressing key issues on promoting fiscal sustainability and easing the transition to GST for business and consumers, while placing the nation on a firmer growth trajectory towards Vision 2020.
Part 1
The three key issues concerning the individuals and sole-proprietor business have been introduced in 2015 budget.
The first issue is about individual tax. The first change is that the income tax rate is reduced by 1 to 3% for resident individuals depending on different levels of chargeable income since Year of Assessment (YA) 2015 (KPMG, 2014). This results in that tax payers ...view middle of the document...

It is proposed that the 50% stamp duty exemption is given to a Malaysian citizen who executes instruments of transfer and loan agreements for a purchase of only one unit of residential property not exceeding RM500,000 which is RM100,000 more than existing legislation. Additionally, the effective date for the exemption is extended to 31 December 2016. This adjustment aims to benefit more low- and middle-income Malaysians own a roof above their heads amid rising property prices, industry players and observers said (Bernama, 2014).
In 2015 Budget speech, YAB Dato’ Sri Modh Najib Tun Haji Abdul Razak mentioned that the government would introduce a new Sharia-Compliant investment product called the Investment Account Platform (IAP) to provide opportunities for investors in investing their money as well as to boost development of SME by attracting participation from individual and institutional investors (Al Naqiy, 2014). This proposal will take effect from 1st September 2015 to 31st August. As an incentive to utilize this platform, government reported that individual investors will get income tax exemption on profits earned if the following conditions are fulfilled:
i) Tax exemptions shall only be accorded for three consecutive years starting from the first year where the profit is earned;
ii) The investment is made for a period of 3 years starting from the operation date of IAP;
iii) Tax incentive shall only be accorded for investment activities in Malaysia, in venture companies owned by Malaysian or locally incorporated companies;
iv) Tax exemption shall only be accorded for investments made in SMEs and venture companies in any sectors; and
v) Definition of SMEs is as per the latest definition issued by SME Corporation Malaysia.

Part 2
According to Budget 2015, individual income tax rate has been reduced by 1-3% in terms of the different ranges of the income. For the personal Income Tax reductions, many residents said that they are pleased that the government is reducing income tax rates by 1-3% for assessment year 2015 (The Star, 2014). Under this mechanism, tax payers are enjoying a tax saving of at least 5.3% and those with income under RM4,000 would no longer have to pay income tax. This brings tax payers are closer to regional practices, and not only would tax payers have more disposable income, but also this will make Malaysia a more attractive employment destination.
However, some people think that the deduction of the individual tax rate is because of the implementation of GST, so actually national people are paying another new tax, making the cash in hands no difference.
As discussed in Part (1), in order to guarantee more people can own their first home and reduce the cost of buying a house Malaysian government make a proposal. Some people commented that “ We appreciate that the Government has extended the 50% stamp duty on the instruments of transfer and loan agreements, at the same time increased the purchase limit...

Other assignments on Malaysia Goods And Services Tax

Agilent Essay

824 words - 4 pages in computer engineering from Imperial College London. Products and services Agilent's major product lines include: * Electronic Test and measurement products * Life science and chemical analysis products * Diagnostic & Genomic measurement products Agilent Malaysia service center offers repair and calibration for a significant number of Agilent products. Application Engineering Services from Agilent can be employed on a paid

International Business Essay

539 words - 3 pages and assembly as usual. Given the nature of the ad valorem tariffs, another alternate way to evade the taxes would be to manufacture the computer components in Thailand and export the unfinished computer goods to another nation to complete the physical assembly of the computers for sale to avoid the higher taxed amount when compared to the finished computer. Whether it be sending them to Malaysia, Hong Kong, or the United States, they are all

Gst Effects On Certain Goods

866 words - 4 pages The article mainly issues about the implementation of the Goods and Services Tax (GST) and its effects on the pricing of consumer items. GST is an ad valorem tax, since as mentioned in the article, it imposes a 6% tax rate on the price of the goods or services. The government has also identified which items will be taxed, depending on the level of its necessity and its elasticity. (HABIB, 2015) (Graph 1 shows the effect of ad valorem tax on

Risk Mangement

4031 words - 17 pages insurance company offer burglary insurance coverage: Zurich Insurance Malaysia | AIG Malaysia | Damage to the building due to theft or attempted threat. | Loss/damage to Household Goods and Personal Effects due to Burglary or Robbery. | Hold up or armed robbery | Loss/damage to Personal Valuables (cash, watches, items of platinum, gold, silver articles and jewellery) due to Burglary or Robbery (Reimbursement basis). | Theft consequent upon

Kamal Ismail

2311 words - 10 pages listenership and the leading outdoor media network in Malaysia (Picksung, 2009). Another important reasons for media conglomeration are the cash flow of individual companies and the benefit of owning a diversified portfolio (Alexander, Owers, Carveth, Hollifield, & Greco, 2004). Conglomeration provides income to the media owner through tax payments, like the case of Media Prima being an income generator for UMNO and the government (Sabran, 2014). In

Psychological Motivation

3934 words - 16 pages loyalties. In the psychological tax contract, punishment still plays a role in order to provide deterrence. But the satisfaction of taxpayers with what they get from the other contract party, i.e. the government, mainly influences their tax morale. Taxpayers’ reward from that contract must be understood in a broad sense going beyond pure exchanges of goods and services for the payment of a tax price. In addition to such direct exchange

Kelebiuan Malaysia

4744 words - 19 pages completes their daily lives. Despite their busy climb on the corporate ladder, the ambitious still has a stronghold on family values. Often, the juggle in prioritising is limited to family or work. 8.0 What is the state of development in Malaysia? 8.1 Medicine and health care: Malaysia boasts a sophisticated system of modern health care with doctors trained in advanced biomedicine. These services are concentrated in the large cities and

The One

592 words - 3 pages Ben Franklin said, “ In this world nothing is certain but death and taxes”. Taxes are collected from citizens from the government in order for the government to provide everyone with various goods and services. Let’s say, “ The state has decided to increase funding for public education. They are considering four alternatives to finance these expenditures. All four taxes would raise the same amount of revenue.” The four taxes proposed are as

Financial Regulation

954 words - 4 pages stability and a sound financial structure; and • To influence the credit situation to the advantage of Malaysia. Commercial Banks The commercial banks are the largest and most significant providers of funds in the banking system. There are currently 24 commercial banks (excluding Islamic banks) of which 13 are locally incorporated foreign banks. The main functions of commercial banks are to provide: • Retail banking services such as the

Dividend Policy

3312 words - 14 pages determine its current clientele of investors. Other than that, trade cycles, government policies, taxation policy, legal requirements, past dividend rates ability to borrow, policy of control and etc will also affect a company's dividend policy. 5.0 Impact of Tax on Dividend Policy There was actually no impact for tax on dividend policy in Malaysia. But it will be some impact during the transitional period of dividend tax system.The single-tier

Tax Shelter

275 words - 2 pages IRS. If found that you are you will owe back taxes and all accrued penalties/interest. The IRS has made a list of abusive transactions, if what someone is doing resembles one of transactions, then it would be considered abusive and the user may face penalties. Due to differing tax rates and legislation in each country, tax benefits can be exploited. If I buy $1 of goods from Japan and I sell them for $3, I will pay tax on $2 of taxable income

Similar Documents

Malaysia In The 1990s Essay

782 words - 4 pages soft technology-sharing. During 1970s and 1980s, big international companies such as Intel, and National Semiconductor interested in West Malaysia and due to this investors, industry increased by 20% in the same period. Also, timber production and export surged gradually and they increased exported goods variety. Then, the government incented domestic materials such as lumner, plywood, wooden moldings, latex and furniture. While the government

2015 Budget Essay

608 words - 3 pages . Income Tax (Deduction for Cost relating to Training for Employees for the Implementation of Goods and Services Tax) Rules 2014 [P.U. (A) 334/2014] gazetted on 17 December 2014 According to Rule 2(1) of the P.U. (A) 334/2014, a deduction is allowed on expenditure incurred by the qualifying person in training its employees under an accounting or information and communication technology training (“ICT”) programme which is conducted in

Apache Major Risk Essay

296 words - 2 pages Goods and services tax (GST) is tax on what consumer spends on but not we earned on. On 30 march 2010, our prime minister introduce the New Economy Model (NEM) and says that wider tax base is a important part of reform for new economy, so GST is a key component in this reform of new economy. GST bills will impose to tax on goods and services but not to essentials item. Besides that to protect the small business the finance ministry had

Mcdonalds Fast Food Chain Malaysia Essay

4509 words - 19 pages airlines and the light rail transit (LRT) system. Nationalisation also helps to encourage development of the services that will benefit Malaysia in general. Privatisation in Malaysia is done with the aim to increase efficiency for example the national telecommunication departments (Telekom) and the postal services (POS Malaysia). Malaysia is a member of the United Nations (UN) since 17th September 1957. Malaysia also is a member of the