Worldwide Individual Taxes Summaries——Malaysia(2001-2002)

Worldwide Individual Taxes Summaries——Malaysia(2001-2002)

责任编辑:北京中立诚会计师事务所  文章来源:北京中立诚会计师事务所  点击数:  更新时间:2006/7/11 20:23:57

SIGNIFICANT DEVELOPMENTS
With effect from 2001, male and female taxpayers are accorded equal tax treatment by an amendment to legislation that allows a woman, whose husband has no income and elects to be assessed under her name, to claim a “husband relief.”
An exit levy is imposed on the repatriation of profits from investments in shares, bonds, and other finanCIAl instruments. As from February 1, 2001, no levy is imposed for profits repatriated after a period of one year from the month in which profits are realized.
TERRITORIALITY AND RESIDENCE
An individual resident in Malaysia is taxed on any income accruing in or derived from Malaysia or received in Malaysia from outside Malaysia; a nonresident is taxed only on income accruing in or derived from Malaysia.
The status of individuals as residents or nonresidents determines whether or not they can claim personal allowances and the benefit of graduated tax rates. Resident status is determined by reference to the number of days an individual is present in Malaysia. Generally, an individual who is in Malaysia for a period or periods amounting to 182 days or more
in a calendar year will be regarded as a tax resident.
Basis of assessment/As from year of assessment 2000, assessment of income is on a current-year basis. For year of assessment 2001, an individual will be taxed on income arising in the calendar year 2001.
GROSS INCOME
Employee gross income/An employee is taxed on employment income earned for work performed in Malaysia, regardless of where payment is made.
Employment income includes salary, allowances, perquisites,
benefits-in-kind, tax reimbursements, and rent-free accommodation provided by the employer.
Medical benefits, as well as childcare benefits provided by the employer, are not taxable. Leave passages, restricted to one overseas trip, up to a maximum amount of RM3,000 and three local trips per year, are also tax exempt in the hands of the employee. Cars or other household items provided for private use are valued at prescribed rates that are lower than the actual cost incurred by the employer. Rent-free accommodation
provided by the employer is valued at the lower of 30% of the employers are not deemed benefits-in-kind and hence not taxable.
Short-term visiting nonresident employees are not subject to tax on income from employment exercised in Malaysia if the period of employment does not exceed 60 days in a calendar year. If the period of employment straddles two calendar years, they are exempt if the total period of their employment over the two years does not exceed 60 days.
Area representatives of nonresident companies using Malaysia as a base for activities extending to other countries in the Far East are taxed on the remuneration relating to the time actually spent in Malaysia.
Capital gains and investment income/Capital gains on the disposal of real property (including shares in a real property company-RPC) situated in Malaysia are subject to real property gains tax. The tax is levied at rates ranging from a maximum rate of 30 (for assets held for less than two years) to 0% (for assets held for more than five years). Capital losses on the sale of real property (other than losses on the disposal of RPC shares) are allowed as offset against gains arising on the sale
of real property. (A real property company is a controlled company that owns real property or RPC shares with a defined value of not less than 75% of its total tangible assets.) Other capital gains are not subject to tax.
An  individual who is not a citizen or permanent resident in Malaysia is subject to real property gains tax on gains arising from the disposal of real property or RPC shares on or after October 17,1997, at a rate of 30% on disposals within five years and at 5% on disposals after five years.
A resident is generally subject to income tax on all investment income accruing in or derived from Malaysia or received in Malaysia from outside Malaysia. A nonresident is not taxed on income derived outside Malaysia.
Interest received by a resident individual is subject to income tax at a flat rate of 5%. Interest received on deposits for a period of 12 months or more is tax exempt. Interest received from certain types of bonds or securities in also exempt from tax.
Interest paid to a nonresident individual by commerCIAl or merchant banks or finance companies operating in Malaysia is exempt from tax.
DEDUCTIONS
Business deductions/Employees are allowed a deduction for any expenditure incurred wholly and exclusively in the performance of their duties, but no allowance is given for tax depreCIAtion. Expenses of a private or domestic nature are expressly excluded from deduction; for example, the cost of traveling to and from a place of employment is not deductible.
Nonbusiness expenses/Nonbusiness expenses, for example, domestic or household expenses and taxes, are not deductible. Mortgage interest incurred to finance the purchase of a house is deductible only if income is derived from the house. Donations to approved funds and subscriptions to assoCIAtions related to the individual’s profession are deductible.
Personal allowances/A resident individual receives a personal deduction of RM8,000, an allowance of RM3,000 for a spouse (except in a case where a husband and wife have ceased to live together during the year), and child allowances of RM800 for each child. A child allowance of up to two or four times the normal deduction is given where certain conditions are satisfied. Instead of the normal child relief, an allowance of RM5,000 is granted for each physically or mentally handicapped child. Child relief can be claimed by a wife filing a tax return separately. Additional deductions of RM5,000 (personal relief) or RM2,500 (spouse) will be granted if the individual or spouse is disabled.
Medical expenses incurred for the individual’s parents would qualify for deduction, but this deduction is limited to RM5,000. An additional amount of up to RM5,000 is given for medical expenses for self, spouse, or child on treatment of a serious disease (e.g., AIDS, leukemia). This amount includes medical examination fees of up to RM500 incurred for self, spouse, or child. A wife filing a return separately is also eligible for these deductions.
Expenses of up to RM5,000 incurred for the purchase of disability-supporting equipment for the individual’s own use if the individual is a disabled person, or for the use of a spouse, child, or parent who is disabled, would be allowed as a deduction.
Contributions to approved pension/provident funds and annual premiums for insurance policies taken out by a resident employee on that employee’s own life, a spouse’s life, or jointly are allowed, subject to a limit of RM5,000. An additional amount of up to RM3,000 is given for premiums for
insurance on education or for medical benefits incurred for the individual, spouse, or child. Similar relief subject to limits of RM5,000 and RM 3,000 is also given for contributions/premiums incurred by a spouse, where the spouse’s income is either separately or jointly taxed. An additional
amount of up to RM1,000 is also given for premiums on an insurance for annuity benefits.
A deduction limited to a maximum of RM5,000 is allowed for fees paid for a course of study in Malaysia undertaken to acquire technical, vocational or industrial, scientific, or technological skills up to tertiary level.
A deduction of up to RM500 is given for purchase of books, journals, magazines, and other similar publications for purpose of enhancing knowledge.
Personal allowances are deducted to determine the taxable income of the resident individual.
TAX CREDITS
A tax resident is entitled to claim foreign tax credits against Malaysian tax. Where a treaty exists, the credit available is the whole of the foreign tax paid or the Malaysian tax levied on the foreign-source income,whichever is lower. In the absence of a tax treaty, the credit due is restricted to one-half of the foreign tax paid.
OTHER TAXES
There are no soCIAl security taxes or local taxes on income.
Real property gains tax/Real property gains tax is imposed at rates from 0 to 30% on gains arising from the disposal of real property (which includes the disposal of shares in a real property company) situated in Malaysia (see “Capital gains and investment income” above).
Exit levy/Under the Exchange Control Act, 1953, an exit levy is imposed on the repatriation of profits from investments in shares, bonds, and other finanCIAl instruments. Dividends, rents and interests, and profit from the sale of immovable properties in Malaysia are excluded from the levy. Foreign direct investment are also not subject to the levy. The rate of the levy is 10%. With effect from February 1, 2001, profits
repatriated after a period of 12 months from the month in which the profits are realized will not be subject to the levy.
TAX ADMINISTRATION
Returns/Returns are filed jointly by the taxpayer and the taxpayer’s wife. The income of a wife living with her husband is taxed separately from that of the husband. However, a wife who is a resident or a Malaysian citizen can elect to be taxed jointly with her husband.
From 2001, a husband who has no income may also elect to be assessed jointly with his wife under the wife’s name. Where husband and wife are jointly assessed in the wife’s name, she is entitled to claim “husband relief” of RM3,000. Up to 2000, only a husband was entitled to claim “wife relief” of the same amount.
Returns are required by law to be filed within 30 days from the date of the issue of the tax return form.
Payment of tax/Tax is payable 30 days from the issue of an assessment notice. However, tax payments by employees are collected through compulsory deductions from salary. From the year 2000, all deductions are made on a PAYE basis.
TAX RATES
The rates of tax applicable to the various brackets of taxable income commencing from RM50,000 are shown below.
       Taxable income                              Tax on       Percentage
   Over       Not over                            Column 1       on excess
(Column 1)
RM  50,000  RM  70,000………………………………  RM  4,275           20
    70,000     100,000………………………………      8,275           25
   100,000     150,000………………………………     15,775           28
   150,000………………………………………………     29,775           29
A nonresident individual is taxed at a flat rate of 29% on total taxable income.
INDIVIDUAL TAX CALCULATION
Assumptions
Resident employee and wife, two children; one spouse earns all the income.
TAX COMPUTATION
Gross income:
  Salary………………………………………………………………   RM  200,000
  Interest (18,640) (Note 1)  …………………………………            -
Total gross income…………………………………………………       200,000
Less-Approved donations …………………………………………         1,000
                                                               199,000
Less-Personal exemptions:
  Self and wife……………………………………………  11,000
  First child (over 18 and attending university…   3,200
  Second child (under 18)  ……………………………     800
  Medical expenses for parents (maximum) …………   5,000
Life insurance premiums and provident fund contributions
  (maximum)…………………………………………………   5,000
Premiums on education/medical insurance (maximum)… 3,000
Purchase of books for enhancing knowledge (maximum)   500       28,500
Taxable income………………………………………………………    RM 170,500
Income tax at joint return rates (see table above)………    RM  35,720
1. Nonexempt interest received from banks and finance companies is subject to a withholding tax of 5%, which is a final tax. Not further tax is payable thereon.
2. From September 1, 1998, the exchange rate of the ringgit is fixed at US$1=RM3.80.       

北京中立信永税务师事务所简介下载
地 址:北京朝阳区北苑路13号领地OFFICE大厦B座7层701室
电 话:(010)- 52086638 51095615
传 真:(010)- 52086636
邮 编:100107
E-mail:supercpa@163.com
北京中立诚会计师事务所简介下载
地 址:北京朝阳区北苑路13号领地OFFICE大厦B座7层701室
电 话:(010)- 52086638 51095615
传 真:(010)- 52086636
邮 编:100107
E-mail:supercpa@163.com