Happy New Year everyone! We have said our goodbyes to 2018 and celebrated 2019 with lots of yummy lunches and Annual dinners!
To kick start the New Year, we would like to refresh our memories on some highlights of Budget 2019. Here are some useful information for everyone:
Important Information of Budget 2019
1. Under the Special Voluntary Disclosure Program, lower penalty rate of 10% for voluntary disclosure of unreported income from now until 31 March 2019 and 15% for period of 1 April 2019 until 30 June 2019. Post-voluntary disclosure period, penalties ranging from 80% to a maximum of 300% will be imposed.
2. Unutilised tax attributes (i.e. business losses, unabsorbed capital allowances, unabsorbed reinvestment allowance and pioneer losses) can only be carried forward for a maximum of 7 years of assessment.
3. Service tax will be imposed on imported services from 1 January 2019.
4. Real property gain tax (“RPGT”) on chargeable gains for disposal in the 6th year and subsequent years to be increased from:
• 5 to 10% for company, non-citizen and non-permanent resident individual
• 0 to 5% for citizen and permanent resident individual
5. Stamp duty rate to be increased from 3% to 4% for transfer of property exceed RM1million.
6. Tax exemption for interest earned on wholesale money market funds to be abolished from 1 January 2019.
7. Employer portion of EPF contributions to be decreased from 6% to 4% for Malaysian employees aged 60 and above effective 1 January 2019.
8. Minimum wages to be raised to RM1,100 per month starting 1 January 2019.
9. Combined personal tax relief for EPF contribution and life insurance will be separated into:
• RM4,000 for EPF contributions or approved provident fund; and
• RM3,000 for life insurance premiums.
10. Income tax relief on National Education Savings Scheme ("SSPN") to be increased to RM8,000.
11. Excise duty to be imposed on sugar sweetened beverages at RM0.40 per litre based on the sugar content starting 1 April 2019.
12. Tax exemption granted on donations to national schools and public institutions of higher learning (IPTA) registered with the Ministry of Education starting 1 January 2019.
13. Tax incentive for employers:
• Double deduction on remuneration for employees who are senior citizen or ex-convicts (limited to RM4,000)
• Tax deduction for payments of PTPTN loan on behalf of employees
14. Tax rate for Small and Medium Enterprise (SME) to be reduced to 17% for the first RM500,000 of chargeable income from YA 2019
Source: Budget 2019
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