A SERVICE tax of RM50 will be imposed on each principal credit card every year beginning Jan 1. For every supplementary card, a RM25 service tax will be charged yearly.
Broadband users relieved over RM500 tax relief
BROADBAND Internet users are relieved with the RM500 tax relief granted to them. The broadband tax relief incentive will be implemented from January 2010 to 2012.
Personal relief raise from RM8,000 to RM9,000
Personal tax relief for EPF and insurance raise from RM 6000 to RM7,000
And to encourage people to start saving at a younger age, the Government has declared that the existing personal tax relief of RM6,000 for EPF contribution and life insurance premiums be increased to RM7,000 from January next year for people with annuity schemes.The RM1,000 increase is only for annuity premiums paid on Jan 1 next year for such retirement schemes offered by insurance companies.
Maximum tax rate for individuals reduced to 26%
The reduction in personal income tax by one percentage point to 26% will ensure that the individual income tax remains competitive. The cut in personal tax rate is for people earning above RM100,000 per annum.
Income tax capped to 15% for qualifying activities in Iskandar, applicable to Malaysian and foreigners
It calls for income tax on employment income of Malaysians and foreign knowledge workers residing in Iskandar Malaysia and working in qualifying activities to be imposed at a rate of 15% indefinitely. Those eligible for this tax treatment must be engaged in qualifying activities, such as green technology, biotechnology, educational services, healthcare, creative industry, financial advisory and consultancy services as well as logistic services and tourism.
Property sales gain is taxed up to 30%
THE Government has proposed to reimpose real property gains tax (RPGT) for gains arising from property disposal. Based on the Finance Bill, disposal within two years of acquisition will be taxed 30%; in the third year, it will be 20%; in the fourth year 15%, while disposal within five years and beyond will still be subject to 5% tax. It provided exemption for the sale of a residential property for the first time and transfer of properties among family members like father to children. Most rates of RPGT from January 2010 will be restored to those prevailing immediately before its suspension in April 2007.
5% property gains tax stays irrespective of year of sale *new*
The real property gains tax, effective Jan 1 next year, is only 5% irrespective of the year when the property is disposed, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah. “The real property gains tax for the first year is 5% and is the same for the second, third, fourth and fifth year,” he said when clarifying a news report in the business page of The Star yesterday.
The Government will also launch a scheme in January to enable EPF contributors to utilise both current and future savings under Account 2 and their take home pay to get higher mortagage. Currently, eligible amount of mortgage financing is based on contributors' take home pay only while EPF savings are not taken into consideration. This new measure will allow contributors to obtain higher financing to purchase higher value or additional houses, and is aimed at increasing their purchasing power.
Self employed may contribute to EPF
A 1MALAYSIA Retirement Scheme will be set up for the self-employed and those without fixed income, such as taxi drivers, hawkers, fishermen and farmers. Under the scheme, which will be administered by the Employees' Provident Fund, this group will be able to voluntarily contribute a certain sum each month according to their own means. Contributors may then withdraw their savings upon reaching the age of 55. For every RM100 paid to the scheme, the Government will contribute 5%, subject to a maximum of RM60 yearly, for five years.
Source: The Star
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