Staff from the Head Office and operating companies listening to the 2010 Malaysian Budget highlights.
BDO Binder and Group Tax Department jointly organised the "2010 Budget Commentary & Tax Information Seminar" on 12 November 2009 at Level 48, Menara Citibank. The seminar was held to update and brief the staff on the latest taxation issues and highlights from the 2010 Budget Proposals tabled by the Prime Minister / Finance Minister on 23 October 2009.
The seminar covered 2010 Budget highlights, Real Property Gains Tax and Transfer Pricing, with the highlights being:-
CHANGES AFFECTING INDIVIDUALS
- Tax rate for chargeable income group exceeding RM100,000 be reduced by 1% from 27% to 26% effective 2010
- Individual tax relief on broadband subscription fees up to RM500 per year from YA 2010 until YA 2012
- Personal relief be increased from RM8,000 to RM9,000 effective YA 2010
- Tax relief on EPF and life insurance premium be increased from RM6,000 to RM7,000 effective YA 2010. The increased relief is given solely on annuity scheme premium from insurance
- A fixed rate of 5% be imposed on gains from the disposal of real property effective from 1 January 2010. (Exemption up to RM10,000 or 10% of the gains, whichever is higher is given to individuals; gift between parent and child, husband and wife, grandparent and grandchild, and disposal of a property once in a lifetime)
- Service tax on credit cards and charge cards effective from 1 January 2010 i.e RM50 per year on the principal card and RM25 per year on the supplementary card
- The employment income of knowledge workers residing in Iskandar Malaysia and working in qualifying activities be taxed at 15% indefinitely. (Applicable to workers who apply and commence employment between 24 October 2009 and 31 December 2015)
- Government to make it easier for skilled/qualified people to get permanent residence status. Visa to be granted for family within 14 days
CHANGES AFFECTING COMPANIES
- Expenses incurred on registration of patents and trademarks be allowed as a deduction for tax purpose for Small and Medium Scale Enterprises
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- Enhancing Tax Incentive for Health Tourism i.e. tax exemption on 100% of the value of increased export subject to 70% of the statutory income
- Tax incentives for buildings obtaining green building index (GBI) certificate i.e. tax exemption of 100% on the additional CAPEX to be set off against 100% of the statutory income (only applicable for the 1st GBI certificate issued in respect o the building from 24 Oct 2009 - 31 December 2014)
- Stamp duty exemption for buyer of GBI building
- Extension of additional stamp duty exemption of 20% on instruments of Islamic Financing be extended until 31 December 2015
- Extension and expansion of tax incentives (5 year tax exemption) for export of financial services (bank, insurance and takaful sectors)
- Double deduction on expenses to promote Malaysia as International Islamic Financial Centre to be extended to YA2015
- Deduction on expenditure to establish Islamic Stock Broking Companies be extended until 31 December 2015
- Deduction on expenditures incurred in the issuance of Islamic Securities approved by SC/LOFSA to be extended until YA 2015
- Standardizing tax treatment for special purpose vehicles for the purpose of issuance of Islamic securities approved by SC
- Extending tax exemption on profits from Non-ringgit sukuk approved by SC/LOFSA to YA2010
- Tax assessment system for upstream petroleum companies be changed to current year assessment and self assessment system
- Application for tax incentives for forest plantation, consolidation of the management of smallholdings and idle land, knowledge based economy must be received not later than 31 December 2011
REAL PROPERTY GAINS TAX (RPGT)
- A fixed rate of 5% be imposed on gains from the disposal of real property effective from 1 January 2010
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