The Inland Revenue Board (IRB) has published a public ruling (PR) on “Industrial Buildings Part II” (PR No 10/2016) dated 5 December 2016.
The PR explains the types of buildings that qualify as industrial buildings under the provisions of para 80, Sch 3 of the Income Tax Act 1967 through the Income Tax Rules made by the Minister of Finance and the corresponding rates of allowances.
Kindly refer to the IRB website for further details.
Source: IRB website, 5 December 2016. © Intelliconnectasiapacific
The Organisation for Economic Co-operation and Development (OECD)’s Revenue Statistics in Asian Countries 2016 report stated that Malaysia recorded less than the OECD average of tax income (34.2%) of GDP in 2014, similar to Japan, South Korea, Philippines, Singapore and Indonesia.
Despite what the report’s title suggests, the data terminates at 2014. Malaysia’s total tax revenue for 2014 was 15.9% of its GDP.
This indicates that there is scope for increased tax mobilisation in areas such as consumption taxes (eg GST).
Source: Malay Mail Online, 29 November 2016
The Stamp (Amendment) Bill 2016 was introduced in the Dewan Rakyat for its first reading in Parliament.
For more information, please refer to the Parliament of Malaysia website.
Source: Parliament of Malaysia website, 28 November 2016
The Inland Revenue Board (IRB) has published the following public rulings (PRs) dated 23 November 2016:
• Industrial Buildings Part I (PR No 8/2016).
• Gratuity (PR No 9/2016).
Industrial Buildings Part I (PR No 8/2016)
The PR explains the types of buildings that qualify as industrial buildings and the corresponding rates of allowances.
Gratuity (PR No 9/2016)
The changes addressed in the PR are as follows:
• Updated the “Relevant Provisions of the Law” section to include paras 14, 25, 25A, 25B, 25D and 30A of Schedule 6 of the Income Tax Act 1967.
• Amended the “Tax Treatment of Gratuity” section to:
– Reflect the new tax treatment where gratuity will be taxed in the year of receipt.
– Removed examples/clarifications related to the previous tax treatment.
– Clarified the definition of “retirement” under the Minimum Retirement Age Act 2012.
– Added clarification and examples in respect of the new tax treatment under para 25D of Schedule 6 of the Income Tax Act 1967where employees may receive an exemption of RM1,000 for each completed year of service on gratuity payment.
– Added clarification and examples in respect of gratuity received while still in service.
This PR replaces the PR No 10/2011 dated 5 December 2011.
Kindly refer to the IRB website for further details.
Source: IRB website, 23 November 2016, IntelliConnect Tracker
The Budget 2017 was passed at the Dewan Rakyat on 22 November 2017. One hundred and five ministers voted in favour of the Bill, 73 voted against while one minister abstained from voting.
Source: The Star Online, 23 November 2016, IntelliConnect Tracker
