Category Taxation in Malaysia

Tourism Tax Coming to Malaysia

June 9, 2017 Taxation in Malaysia

Kuala Lumpur.KULA LAMPUR – Within a month tourist coming to Malaysia will be forced to pay an extra tax for their accommodation.

Malaysia will implement a tax on tourist accommodation on July 1st, according to a statement made on June 8th by the Minister of Tourism and Culture of Malaysia Mohamed Nazri Abdul Aziz.

The tax was previously expected to be enacted on August 1st, and details to that effect were made public on the Royal Malaysian Customs Department’s website.

However, the references to August 1st have now been taken down.

The tax will be levied at rates between MYR2.5 per room per night for small unrated hotels, and to a maximum rate of MYR 20 per room per night for 5-star hotels.

The tax is expected to bring in approximately MYR654...

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Tax Cut on Horizon in Malaysia

October 6, 2014 Taxation in Malaysia

KUALA LAMPUR – The government of Malaysia is looking to use new taxes to und fel subsidies, while providing tax breaks for individuals and businesses.

The implementation of Malaysia’s long-delayed GST system will lead to a reduction in the rate of income taxes in the country, especially on the incomes of middle-income earners, according to information given by Prime Minister Datuk Seri Najib Abdul Razak in a conference held over the weekend.

The cuts to the rate of income tax are expected to be between 1 and 3 percent, with the biggest impact to be felt by approximately 300 000 low-income individuals who will no longer face any income tax, and also by middle-income earners with salaries between MYR 50 000 and RYM 70 000 per year, who will see a reduction of 3 percent.

The cut in income t...

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No Tax Cuts Anytime Soon for Malaysia

October 17, 2013 Taxation in Malaysia

An Evening at Kuala LumpurKUALA LAMPUR – Malaysia is unlikely to see any tax cuts until the government can implement and perfect its long planned and much delayed GST system.

In a presentation made at a seminar organized by the Malaysian Economic Association a few days ago, Veerinderjeet Singh, the co-founder and Chairman of Malaysian chapter of Taxand, said that the government will be unlikely to cut income taxes following the long-awaited implementation of the new GST system, as efforts will more likely be expended on ensuring refining the rules for the consumption tax instead.

Since 2009 the government of Malaysia has worked towards replacing the SST with a broader and more inclusive 4 percent GST system, however, the change has been delayed several times, and Veerinderjeet Singh has suggested that the change ...

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Malaysia to See Tax Collection Boost

December 22, 2011 Taxation in Malaysia

Tax Revenue in MalaysiaKUALA LUMPUR – Malaysia will see a significant boost to its tax revenue levels, due to the government’s efforts to stamp out illicit capital outflows.

At a press conference held on December 21st in Kuala Lampur, the Prime Minister of Malaysia Najib Razak stated that the Inland Revenue Board expects to collect approximately MYR 98 billion in tax revenues this year. The new projection is approximately MYR 7 billion higher than forecasted by the government earlier in the year. If the expectations are realized, then the government will collect MY 20 billion more than the previous year.

The Prime Minister said that the increased revenue will be a direct result of the government’s push towards stamping out tax evasion...

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Malaysian GST Delayed Again

October 14, 2010 Taxation in Malaysia

An Evening at Kuala LumpurThe Malaysian Government has once again delayed replacing the country’s current sales tax with a new Goods and Service Tax system, which could have raised a reported MYR 8.8 billion (approx. USD 2.84 billion) annually.

On October 13th the Malaysian Government issued a statement saying that it has decided to indefinitely delay the implementation of its controversial Goods and Services Tax (GST). The tax was originally mooted in 2007, and was aimed at lessening the country’s heavily reliance on revenues drawn from the state-owned oil company Petronas. It was theoretically intended to kickoff a series of tax overhauls and simplifications, which would have potentially drawn a greater number of foreign investors into the country.

The Malaysian Finance Ministry indicated that the Government...

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