Malaysia Budget 2014

Details and Scope of Goods & Services Tax

The much sought after details and scope of the Goods and Services Tax (GST) have been released by the Custom Department. GST will be implemented from 1 April 2015.

The current sales tax and service tax will be abolished and be replaced by a consumption tax based on the value-added concept known as Goods and Services Tax (GST).

The proposed GST model to be implemented in Malaysia is detailed as follows: Read More

Budget Malaysia 2014: Highlights, Tax Summary and Proposals

Budget Malaysia 2014: Highlights

Budget 2014: Strengthening Economic Resilience, Accelerating Transformation And Fulfilling Promises

Budget 2014 Malaysia was tabled by Prime Minister Datuk Seri Najib Razak in Parliament on 25 October 2013 from 4:00pm to 6:00pm.

The spotlight of this budget is on the implementation of GST with effective from 1 April 2015.

(Originally posted on 25 October & now updated on 10 November)

Budget 2014 Highlights & Summary

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GST: main cause for higher inflation in 2015

GST and InflationGoods and Services Tax (GST) has been very must talk of the town following the announcement of time table for implementing GST  in the Budget 2014 by Prime Minister Datuk Seri Najib Razak.

Based on other countries’ experiences at the introduction year of GST, the inflation rates were 2-3 (%) percent above the normal rates registered in prior years once the GST was implemented, depending on the GST rates introduced.  Read More

Budget 2014: 1,000 Dialysis Machines To Be Given Away Free

Budget 2014: 1,000 Dialysis Machines To Be Given Away FreeUnder Budget 2014 Malaysia, 1,000 dialysis machines to be given away free by the Government to patients with end stage kidney failure and these new machines will allow dialysis patients to conduct the dialysis at their home.

Comment from NBC:

Dialysis patients in Malaysia have rarely opted to be treated at home and almost all of them have been receiving treatments from Dialysis Centres in Hospital or Dialysis Unit operated by charity/charitable foundations.  Read More

Budget 2014: Corporate tax rate reduced to 24%

corporate-tax-rate-24-percentTo support the smooth implementation of GST and to further enhance the competitiveness of Malaysia, the corporate tax rate will be reduced by 1%, from current 25% to 24%, with effect from year of assessment 2016 onwards. This means company tax reduction will be effected only after 1.5 years from the date of GST implementation (1 April 2014).

For SME company with paid up capital up to RM2.5 million, the rates will also be reduced by 1% as follows:

Read More

Budget 2014: Special personal tax relief RM2,000

tax-reliefAs announced in Budget 2014 and to increase the disposable income of the middle income group, a special one-off personal tax relief of RM2,000 will be given to resident tax payers earning up to RM8,000 a month (aggregate income up to RM96,000 a year).

This will give a tax saving up to RM480 depending on the amount of tax payable after taking into consideration all the deductions.

This special one-off personal tax relief of RM2,000 is given for one year, i.e. year of assessment 2013 only. You may deduct this special tax relief when you are submitting your 2013 tax return by April 2014.

Budget 2014: Personal tax reduced in 2015

Budget 2014: Reduce personal tax in 2015Upon the implementation of GST in April 2015, the Government is committed to provide various forms of assistance to the rakyat during and after the GST implementation. One of the significant measure is to reduce personal income tax rates in order to increase rakyat’s disposable income.

In the Budget 2014, it is proposed that:

Individual income tax rates be reduced by 1 to 3 percentage points for all tax payers to increase their disposable income. With this measure, 300,000 persons who currently pay income tax will no longer pay tax. Generally, families with monthly income of RM4,000 will no longer have tax liability. Other existing tax payers will also enjoy tax savings; Read More

Budget 2014: The introduction of Goods and Services Tax (GST)

GSTIt was announced by the government in Budget 2014 that Goods and Services Tax (GST) will be implemented effective from 1 April 2015 and GST rate will be fixed at 6 (%) per cent.  

Sales tax and service tax will be abolished by then.

Currently, Sales tax and service tax rates are 10% and 6% respectively.  Read More

Budget 2014: Pay less tax in Goods and Services Tax (GST)?

Budget 2014: Pay less tax in Goods and Services Tax (GST)?It was announced by our Prime Minister that 300,000 individuals who are earning a monthly income of RM4,000 will no longer need to pay any income tax in 2015, following the implementation of GST in 2015.

Are you going to pay less tax after the introduction of Goods & Services Tax (GST) on 1 April 2015?

The answer is obviously NO! You will surely be paying more TAX when GST is imposed!  Read More

Budget 2014: BR1M RM650 for Households and RM300 for Singles

The government will distribute higher Bantuan Rakyat 1Malaysia (BR1M) to households (RM650) and single individuals (RM300).

BR1M of RM450 will now be given to those households earning monthly income between RM3,000 and RM4,000.

In addition to the above, additional RM50 will be contributed to an insurane programe, Group Takaful Rakyat 1Malaysia (i-BR1M), for all BR1M household recipients.

All BR1M recipients will be entitled for an insurance sum of RM30,000 in the event of death or permanent disability.  Read More

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