Tax News

BUDGET 2012 MAIN POINTS

1     INDIVIDUALS

Personal relief increased from RM8,000 to RM9,000

From 1 Jan 2010

RM6,000 EPF and insurance relief  increased by RM1,000, applicable for insurance only

From 1 Jan 2010

Highest tax rate reduced from 27% to 26%

From 1 Jan 2010

RM500 relief per year  for broadband subscription fees

YA2010 -YA2012

Service tax of RM50 per year on credit card, and RM25 per year on supplementary card

From 1 Jan 2010

2     REAL PROPERTY GAINS TAX (RPGT) 

Effective 1 January 2010, a 5% Real Property Gains Tax will be imposed on gains from disposal of real property for properties sold within five years of their purchase (as amended on 28/12/09).

The following exemptions apply for individuals only:

ü          Gains up to RM10,000, or 10% of gains, whichever is higher.

ü          Gifts between husband/wife, parent/child, grandparent/grandchild.

ü          Once in lifetime disposal of a residential property.

Tax is collected by the Purchaser withholding and remitting 2% of the purchase value at the point of purchase.

3     OTHERS

A)     PATENTS AND TRADEMARKS

For Small and Medium sized Enterprises (SME), from YA2010 to YA2014, expenses incurred in registering patents and trademarks in Malaysia are allowed as a deduction for tax purposes.

B)     GREEN BUILDING INDEX (GBI)

From 24 October 2009 to 31 December 2014, building owners can claim capital expenditure incurred in upgrading their buildings to meet and obtain the GBI certificate.

Additionally, buyers of property with the GBI certificate, purchased from developers, are eligible for stamp duty exemptions on transfer of ownership of these buildings.