Tax lecturer's insights on Budget 2019

Wong before starting the talk

Aimed at providing participants with updates, insights and knowledge on the new provisions of Malaysia’s 2019 budget, as well as an effort by the university to provide a platform for participants to get the latest information about current issues of the country, a talk on “Budget 2019” was organised by the Centre for Accounting, Banking and Finance (CABF) of Faculty of Business and Finance (FBF) on 16 November 2018 at Kampar Campus. The invited speaker was FBF tax lecturer from the Department of Commerce and Accountancy Theresa Wong Lai Har.

Themed ‘Sharing Nations’ Prosperity’, the talk covered aspects of individual income tax; companies and unincorporated businesses income tax; investment incentives, Real Property Gain Tax; stamp duty; and reduction of penalty for voluntary disclosure. The aim of the talk was to provide participants with updates and knowledge on the new provisions of Malaysia’s 2019 Budget.

Wong explained that combined tax relief for Employees Provident Fund (EPF) contribution and life insurance or takaful deduction to be separated into RM4,000 for EPF contribution and RM3,000 for takaful or life insurance premiums. For civil servants under the pension scheme, Wong mentioned that the tax deduction will be up to RM7,000, and explained that the separation of the relief is in line with the Government’s commitment to help Malaysians become financially resilient through insurance and takaful protection.

She also mentioned that there will be an additional tax relief for savings deposited into PTPTN’s National Education Savings Scheme (SSPN) from the current RM6,000 to RM8,000 for 2019 and 2020. She also highlighted on the increase in Real Property Gains Tax rates from the current 0% to 5% for disposals of properties after the fifth year. Participants were also made aware of the stamp duty exemption on instrument of transfer and loan agreement for the purchase of first home with a price up to RM300,000 for 2019 and 2020, and the increase of stamp duty from the current 3% to 4% on the transfer of property with a value of more than RM1,000,000. Her talk also spoke about the departure levy for all outbound travellers by air of RM20 to ASEAN countries and RM40 to non-ASEAN countries.

On tax measures relating to companies and businesses, Wong spoke about the reduction in tax rate from 18% to 17% for income of up to RM500,000 for SMEs with less than RM2.5 million in paid-up capital; and the carrying forward of losses and allowances to a maximum of 7 years. The 7 year period would also apply to certain tax incentives. Currently, such losses and allowances are allowed to be carried forward indefinitely. Wong stated that the details of the proposals, at the time of the talk, are not finalised as the Finance Bill is yet to be released.

The talk then ended with an interactive Q&A session and a group photo.

Wong (third from left) with participants

 


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