Budget Commentary 2012

A2 Income Tax - Changes affecting individuals
A2.1 Preferential tax rate for returning experts
-tax at flat rate of 15% for 5 years
-w.e.f Ya2012

A2.2 Seperate tax relief of RM3k for contribution to PRS and Deferred Annuity
-w.e.f Ya2012 to 2021

A3 Income Tax - Changes affecting companies
A3.2 Tax deduction on franchise fee for local franchise brands
-expenses incurred by franchise business e.g royalty,promotion and advertisement fees, training fees and service fees allowed as tax deduction
-franchise fees are arguably capital expenditure case Shaklee
-w.e.f Ya2012

A3.4 Deduction on contribution to private retirement scheme (PRS)
-tax deduction on the contribution by employers to PRS
-w.e.f Ya2012

A3.5 Compensation for late refund of income tax
-2% on amount refund after 90 days from due date for electronic filling, 120 days from due date for manual filling
-w.e.f Ya2013

A3.9 Double deduction for structured intership programme
-full time undergraduate student
-minimum 10 weeks with monthly allowance > RM500
-w.e.f Ya2012 untill 2016

A3.10 Double deduction for scholarships
-full time student
-have no sources of income
-total monthly income of parents or guardian does not exceed RM5k
-w.e.f Ya2012 untill 2016

A3.11 Double deduction of expenses for participation in career fairs abroad
-w.e.f Ya2012 untill 2016

A.3.13 Time bar for tax audit reduced from 6 years to 5 years
-w.e.f Ya2013

A5 Stamp Duty
A5.1 Full stamp duty exemption on loan agreement for purchase of residential properties under the skim Perumahan Raykat 1Malaysia (PR1MA) priced up to RM300k
-w.e.f 1/1/2012 to 31/12/2016

A5.2 Stamp duty exemption on loan agreement for micro finance and professional services fund
-100% stamp duty exemption for loan agreement up to RM50k
-w.e.f 1/1/2012

A8 Real Property Gain Tax
A8.1 Disposal of residential, commercial properties and share in real property companies which holding Period < 2 years-10%, 2-5 years-5%, more than 5 years-0%
-RPGT exemption for disposal one property per individual
-RPGT exemption for disposal within family member
-RPGT on net profit after deduct all the expenses e.g legal fee,stamp duty
-exemption up to RM10k or 10% from the net profit which ever higher for individual
-w.e.f 1/1/2012