BUSI 2089 – TAXATION 1
majority direct tax
:
keep talents in Malaysia
(4-5 star hotels enjoy exemption for 5 years of 10% income)
(returning expert programme: taxed at 15% flat rate for 5 years)
(Increase in excise duty/ import duty/ sales tax)
(Double deduction: companies get it if join internship
programme in specific courses eg. Engineering & tach, if other course,
single deduction)
(spreading burden of tax fairly and equitably among taxpayers)
(Progressive tax structure)
- : paid directly to Inland Revenue Board
▪ (Income Tax Act 1967)
Chargeable upon the income of any person accruing in or derived
from M’sia or received from outside M’sia
▪ (RPGT, 1976)
Chargeable on capital gains arising from the disposal of any interest,
option or other rights in or over land situated in Malaysia
▪ (PITA, 1967)
▪ (Stamp Act, 1949)
,- : collected via some 3rd party, then paid to Royal Malaysian
Customs Department. Generally an addition to the price of product/services
▪ (Customs Act, 1967)
Levied on non-exempted goods imported or exported
▪ (Excise Act, 1976)
Levied on certain locally manufactured or imported goods. Eg.
Liquor, Tobacco
▪ (Sales Tax Act, 2018) & (Service Tax Act 2018)
Levied on taxable goods & services provided in Malaysia
An intentional act to evade tax payment, which is an offence. It includes
concealment of income or claiming a deduction which has not been actually
incurred
A legitimate act to arrange his affairs to not attract tax within the rules and
regulations
a)
▪ Income Tax Act, 1967, Case Laws, Annual Tax Budget 2019, Public
Rulings
b)
▪ A tax known as income tax shall be charged for each year of
assessment upon the income of any person accruing in or derived
from M’sia or received in Malaysia from outside M’sia.
, i) Individual
ii) Company
iii) A body of persons (Trust, club or societies)
-
• Repetitive from a source of income & received in ordinary
course of business
• Periodical return with expected regularity from defined
sources
• Nature of gain/profits has to fall into any of the sub-
paragraphs under Section 4 and 4A
-
• Realisation from long term investments or personal assets
• Windfall, gambling or profits from speculative activities
(you do not put effort and it is not a regular basis)
-
▪ Profits or gains of trade, business, profession or
vocation - business
▪ Profits or gains from personal service - employment
▪ Dividends, interests and discounts
▪ Rents, royalties or premiums
▪ Pension, charges or annuity or other periodical
payments
▪ Gains or profits not falling under any of the foregoing
paragraphs – other
majority direct tax
:
keep talents in Malaysia
(4-5 star hotels enjoy exemption for 5 years of 10% income)
(returning expert programme: taxed at 15% flat rate for 5 years)
(Increase in excise duty/ import duty/ sales tax)
(Double deduction: companies get it if join internship
programme in specific courses eg. Engineering & tach, if other course,
single deduction)
(spreading burden of tax fairly and equitably among taxpayers)
(Progressive tax structure)
- : paid directly to Inland Revenue Board
▪ (Income Tax Act 1967)
Chargeable upon the income of any person accruing in or derived
from M’sia or received from outside M’sia
▪ (RPGT, 1976)
Chargeable on capital gains arising from the disposal of any interest,
option or other rights in or over land situated in Malaysia
▪ (PITA, 1967)
▪ (Stamp Act, 1949)
,- : collected via some 3rd party, then paid to Royal Malaysian
Customs Department. Generally an addition to the price of product/services
▪ (Customs Act, 1967)
Levied on non-exempted goods imported or exported
▪ (Excise Act, 1976)
Levied on certain locally manufactured or imported goods. Eg.
Liquor, Tobacco
▪ (Sales Tax Act, 2018) & (Service Tax Act 2018)
Levied on taxable goods & services provided in Malaysia
An intentional act to evade tax payment, which is an offence. It includes
concealment of income or claiming a deduction which has not been actually
incurred
A legitimate act to arrange his affairs to not attract tax within the rules and
regulations
a)
▪ Income Tax Act, 1967, Case Laws, Annual Tax Budget 2019, Public
Rulings
b)
▪ A tax known as income tax shall be charged for each year of
assessment upon the income of any person accruing in or derived
from M’sia or received in Malaysia from outside M’sia.
, i) Individual
ii) Company
iii) A body of persons (Trust, club or societies)
-
• Repetitive from a source of income & received in ordinary
course of business
• Periodical return with expected regularity from defined
sources
• Nature of gain/profits has to fall into any of the sub-
paragraphs under Section 4 and 4A
-
• Realisation from long term investments or personal assets
• Windfall, gambling or profits from speculative activities
(you do not put effort and it is not a regular basis)
-
▪ Profits or gains of trade, business, profession or
vocation - business
▪ Profits or gains from personal service - employment
▪ Dividends, interests and discounts
▪ Rents, royalties or premiums
▪ Pension, charges or annuity or other periodical
payments
▪ Gains or profits not falling under any of the foregoing
paragraphs – other
