A2.1 Reduction in income tax rates and & change in income tax structure
-tax rate reduced by 1 to 3%
-restructure the chargeable income band exceeding RM100,000
-non-resident individual tax rate reduced by 1% from 26% to 25%
-w.e.f Ya2015
A2.2 Monthly tax deduction as final tax
-w.e.f Ya2014
A2.3 Special tax relief for middle income taxpayers
-special relief of RM2,000 for resident taxpayers with aggregate income up to RM96,000 in 2013
-Ya2013 only
A2.4 1Malaysia Pension Scheme (SP1M)
-government increase its contribution from 5% to 10% (max RM60 to RM120/year)
-w.e.f 1 Jan 2014 to 31 Dec 2017
A2.5 Incentive on Private Retirement Scheme
-one-off incentive of RM500 for individual age 20 to 30 years old with minimum cumulative investment RM1000 within a year
-w.e.f 1 Jan 2014 to 31 Dec 2018
A2.6
Taxability of withdrawal from a deferred annuity scheme
-tax at 8%
for withdrawal from deferred annuity scheme before age of 55-w.e.f 1 Jan 2014
A3 Income Tax - Changes affecting companies
A3.1 Gain or profits from a business arising from stock in trade parted wth by any element of compulsion
new Section 4C and section 24(1)(aa) gains arising from the disposal of stock in trade by compulsory acquisition or forced sales are subject to income tax
A3.2 Deemed interest income from loan or advances to director
-deeming interest income on loans or advances to directors as taxable income of the lending company
-w.e.f 2014
A3.3 Intepretation of director
-principal officer who own between 20-50% of ordinaryshare capital will be jointly and severally liable for the company's tax liabilities
-upon coming into operation of the Finance (No.2) Act 2013
A3.5 Review of corporate income tax rates
-tax rate reduced to 24%
-company with paid up capital of up to RM2.5mil (19% on first RM500,00 and 24% on remaining chargable income)
-w.e.f Ya2016
A3.6 Review of income tax rate for co-operative societies
-tax rate reduced from 20% to 18%, 22% to 21%, 24% to 23% and 25% to 24%
-w.e.f Ya2015
A3.7 Training expenses in line with GST implementation
-training in accounting and ICt for GST be given double tax deduction
-w.e.f Ya2014 and 2015
A3.8 Tax incentive for flexible work arrangements
-double deduction for expenses incurred for training and consultanct fees for implementation of FWA
-w.e.f application for FWA status received by Talent Corporation Malaysia Bhd between 1 Jan 2014 to 31 December 2016
A3.9 Tax incentive for implementation of minimum wages
-different between the original salary and minimum wages paid by SME eligible for double deduction
-w.e.f 1 Jan 2014 to 31 Dec 2014
A3.11 Tax deduction for secretarial and tax filing fees
-Secretarial
fees of up to RM5000 & tax filing of up to RM10,000 allowed for deduction-w.e.f Ya2015
A3.12 Extension of accelerated capital allowance on information technology and communication equipment
-IA 20% and AA 80% on capital expenditure to purchase information and communication technology equipment
-w.e.f Ya2014 to Ya2016
A3.15 Amedment of defination of entertainment under Section 18 of the Income Tax Act 1967
-expenses incurred for the purpose of promoting the business with or without consideration would fall within the definition of entertainment
-w.e.f Ya2014
A3.18 Extending the deductibility of contributions to charitable organizsations
-contributions to charitable organisations can be used to purchase building instead of restricted to used for the contruction or improvement of buildings
-w.e.f Ya2014
A3.20 Taxation of withdrawals of contributions made to a deferred annuity or a Private Retirement Scheme
-withdrawals of contribution made to deferred annuity before reaching the age of 55 subject to withholding tax of 8% excluded withdrawal due to permanent total disablement, serious disease, mental diability, death or permanently leaving Malaysia.
-upon coming into operation of the Finance (No.2) Act 2013
A3.22 Basis period of a company, limited liability partnership, trust body or co-operative society following change of financial year end
-w.e.f Ya2014
A3.25 Payment of withholding tax due
A3.27 Furnishing of tax return by a company
-mandatory for company to file tax return with e-filling
-return furnished bas to be based on account audited by professional accountant
-w.e.f Ya2014
A3.28 Estimate of tax payable for small and medium enterprise
-SME first commences operations in a year of assessment and the SME has no basis period for that year of assessment and for immediate following year of assessment is not required to furnished an estimate of tax payable for that year of assessment and the immediate two following years of assessment
w.e.f Ya2014
A3.29 Amendement to Section 60F, 60H and 63B
-60F Investment holding company, 60H Closed-end fund companies, 63B Unit trust
-Permitted expenses = A x B/4C (standardise C = dividend & interest)
-w.e.f Ya2014
A4 Investment Incentives
A4.1 Extension of tax incentives for new four and five-star hotels
-(a) Pionner status with tax exemption of 70% (Peninsular Malaysia) or 100% (Sabah & Sarawak) of statutory income for a period of 5 years;
-(b) investment tax allowance of 60% (Peninsular Malaysia) or 100% (Sabah & Sarawak) on qualifying capital expenditure incurred within a period of 5 years, can be set-off against 70% (Peninsular Malaysia) or 100% (Sabah & Sarawak) of statutory income for each year of assessment
-Effective date: applications received by MIDA from 1/1/2014 untill 31/12/2016
A9 Real Property Gains Tax
A9.1 Changes in real property gains tax rates
-disposal within 3 years from date of acquisition 30%
-in the 4th year 20% (companies & individual), 30% (non-citizen individual)
-in the 5th year 15% (companies & individual), 30% (non-citizen individual)
-in the 6th year and subsequent years 5% (companies), 0% (individual), 5% (non-citizen individual)
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