Budget 2015

Loh Boon HowChartered Accountant

B. H. Loh & Associates 2

INDIVIDUAL TAX


Personal ReliefNo. Description RM

1 Medical expenses incurred for serious disease

6,000.00

2 Disable child 6,000.003 Basic supporting equipment for the

disabled6,000.00

• Y.e.f YA 2015


Penalty – Leaving Malaysia

• Taxpayer who attempt leaving Malaysia without paying all the tax – shall be liable to RM200.00 – RM20,000.00.


Tax exemption

• Income of a unit trust in respect of interest derived from Malaysia is exempted income tax, under :

1. Banking and Financial Institute Act 1989,2. Islamic Banking Act 1983,3. Development Financial Institutions Act

2012.


Personal Tax Rate (Resident)Chargeable income YA 2015(%) Taxes

1 – 5,000 0 05,001 – 10,000 1 50.00

10,001 – 20,000 1 100.0020,001 – 35,000 5 750.0035,001 – 50,000 10 1,500.0050.001 – 70,000 16 3,200.00


Personal Tax Rate (Resident)

Chargeable income YA 2015(%) Taxes70,001 – 100,000 21 6,300.00

100,001 – 150,000 24 12,000.00150,001 – 250,000 24 24,000.00250,001 – 400,000 24.5 36,750.00

Above 400,000 25


CORPORATE TAX


Income deemed obtainable on demand

Source of income

Receivable YA 2015

Deemed obtainable on demand

YA 2016

Taxing year (YA)

Employment income

10,000.00 10,000.00 2016

Rental income 20,000.00 10,000.00 2016

• w.e.f : YA 2015


DeductionNo Description Type YA1 Scholarship

Extended to vocational and technical field such as : computer programming, automotive, clothing studies.

Double 2015 - 2016

2 Structured Internship ProgrammeExtended for full-time students pursuing courses at the vocational and diploma levels.

Double 2012 – 2016


DeductionNo Description Type YA3 Training (Industrial certifications

and professional qualification)Training expenses incurred by companies for employees in the fields of accounting, finance and project management and approved by Ministry of Finance

Further 2015


DeductionNo Description Type YA4 1Malaysia Training Scheme

Programme(a) Monthly training allowance >

RM1,000,(b) Training expenditure(c) Food, travelling and

accommodation expenditure,(d) Soft-skills training expenditure,

Double Until 31 Dec 2020


DeductionNo Description Type YA5 Secretarial and tax filing fee

(a) Secretarial fee – RM5,000.00(b) Tax filing fee – RM10,000.00The tax filing fee including income tax and GST filing fee.

Double 2015


Capital allowancesNo Description Initial Annual YA1 Information & Communication

Technology (ICT) (a) Printer,(b) Network(c) Software,(d) Access control system etcUnder PU(A) 217/2014

20% 80% 2014 - 2016

2 Small value allowance(a)Each asset RM1,300,(b)Total value RM13,000Under Sch 3, Para 19A(1)

20% 80% W.e.f 2015


Choice of allowances

Allowances Rate(a) Agriculture allowance 20% per YA(b) Forest allowance 20% per YA(c) Industrial building allowance 40% initial allowance

3% annual allowance

• A qualifying industrial building Constructs a new building as living accommodation for his employees

• Make the election by notice in writing to the DG within 3 months of the beginning of the YA in which that expenditure was incurred.

• Sch 3 Para 42(1), ITA 1967


Qualifying Forest Expenditure

• The definition of forest expenditure to be narrowed to capital expenditure incurred only by a person who has a concession or license to extract timber.

• Schedule 3 Para 8(1), ITA 1967, W.e.f YA 2015


Tax treatment on LLPStatus Basis period YA Type of return

Before conversion

1/1/14 – 30/6/14 2014 Individual – Form BPartnership – Form P

After conversion

1/7/14 – 31/12/14 2014 Limited Liability Partnership – Form PT


PenaltySec Description78 Failure to furnishing specific returns & production

books79 Failure to furnishing bank acc, saving, loan acc,

deposits80(3) Failure to furnishing of books, accounts and records in

national language81 Failure to furnishing of information or particular85 Failure to furnishing of returns by occupier of land or

premises 83(1) Failure to furnishing of employer returns


PenaltySec Description

83(1A) Failure to furnishing an employee’s statement of remuneration

83(2) Failure to furnishing a notice of commencement of employment

83(3) Failure to furnishing a notice of cessation of employment

83(4) Failure to furnishing a notice to leave Malaysia for a period exceeding 3 months

86(1) Failure to furnishing a partnership return89 Failure to furnishing notification of change of address


PenaltySec Description

153(1) Illegal holding as a tax agent83(5) Failure to comply where the money withheld is release

without the permission of DG 107 Failure to deduct tax from an employee

107C(2) Failure to furnish an estimation tax payable107C(3) Failure to furnishing an estimation of tax payable of at

least 85% of preceding year107C(4) Failure to furnish an estimation of tax payable within 3

months from the date of commencement operation

• Pursuant to S 120(1), ITA 1967 : Fine RM200 – RM20,000, imprisonment not exceeding 6 months or to both.

21

PenaltySec Income source Filing deadline77A Business source 30 June77A Employment source 30 April

77(1) Company, LLP, trust body, co-operative

Within 7 months from the Acc YE

77(3) An individual arrival to Malaysia Within 2 months of arrival to Malaysia

B. H. Loh & Associates

• Pursuant to S 112(1), ITA 1967 : Fine RM200 – RM20,000, imprisonment not exceeding 6 months or to both.


Tax rate for company (Resident)

• For a resident company with a paid-up capital of up to RM2.5 million, the rates will be reduced to :

• Above rate are applicable to companies and limited liability partnership.

• Schedule 1 (Income Tax Act 1967)

No. Chargeable income 2016 20151 Chargeable income up to

RM500,00019% 20%

2 The remaining chargeable income 24% 25%


Tax rate for company (Non Resident)

• The non-resident company or branch the income tax rate would be 24%(YA 2016) and 25% (YA 2015).

• Schedule 1 (Income Tax Act 1967)


Exemption Of Filing Tax EstimationCondition Company

50% of paid-up capital is directly and indirectly

Owned by a *related company


Owned by the fist mention company


Owned by another company

• Related company – ordinary share more than RM2.5 M at the beginning of the basis period for a year of assessment.

• The SME is must be a resident and incorporation in Malaysia.


Monthly Tax Installment

• The due date for monthly tax installment payment for a to be the 15th of each month

1. Company,2. Limited Liability Partnership,3. Trust body,4. Co-operative society.


Thank you

B. H. Loh & AssociatesAddress :

No. 1-3-15, Goldhill Complex, Tingkat Paya Terubong 1,

11060 Penang.

H/P No. : 016-4893382Email : [email protected]

Web-site / facebook : bhloh.com.my

Budget 2015

Business

Transcript of Budget 2015