Dear valued clients and business associates, It is almost the end of the year and it has been an eventful year for us. There are a lot of recent updates and businesses are finding it increasingly hard to keep up to date with the changes.
Following to Budget Speech by Y.A.B. Dato’ Seri Mohd. Najib Tun Razak, Finance Bill 2016 has been released on 26th October 2016 for consultation. There are a lot of important changes that clients must take note of immediately. We will be highlighting one key topic in our current and each of the coming newsletter to ensure we can explain each key area to you properly.
We will also be organizing our annual Budget Seminar on Friday 13th January 2017 which we are organizing at a very affordable price so that our clients can keep up to date. Our seminar will also highlight key changes in the new Companies Act 2016.
Also, please do take note that Iskandar Malaysia is currently offering an Iskandar Malaysia Employer Grant which offers subsidies to employment to certain groups, such as Women, Disabled, Retrenched and Graduates with poor grades. Do take your time to read to as you may be entitled to a decent amount of subsidy.
In summary, this month’s newsletter includes the following:
Please refer to the following sections for more information. Happy reading!
With compliments from,
M.S. Wong & Co
Seminar: Highlights of Budget 2017 Changes and Recent Updates
Budget 2017 has made some important changes to Malaysia Tax that will affect all businesses.
In our upcoming Budget Seminar, we will be discussing the amendments made in the Finance Bill 2016 and further analyses on the potential practical implications of the changes. If you facing difficulties in response with the changes, let us help you!
We will also be highlighting key changes affecting SMPs in the new Companies Act 2016 and the introduction of the new accounting standards MPERS.
Please download our registration form to know more!
Finance Bill 2016 Key Update: Determination of Taxable Turnover for Registration
Section 20 (6) explains on the supplies to be excluded in calculating taxable turnover for registration. Current treatment excludes sales for capital assets while Finance Bill 2016 proposed that sales of capital assets can only be excluded if it is related to cessation of business.
For example, if Company A having annual taxable turnover of RM 300,000 and intends to sell off one of the company commercial property at RM 500,000, Company A will be required to register itself under GST Act 2014, even though the Company A’s future taxable turnover is remained at RM 300,000 for a continuous 12-months period. This means that more companies and businesses will have to register in the future and report GST until deregistration is approved.
This change comes into effect from 1st January 2017.
The implications of this change will mean a large proportion of commercial property sold will be subject to GST. However, the buyer will not necessarily be able to obtain GST registration. This means there will be double tax implications if property changes hands more than once. This has serious implications on secondary property market and may make it less attractive compared to purchasing new properties from developers.
Good Lobang!!!: Iskandar Malaysia Employer Grant
The Johor state government, via Iskandar Regional Development Authority (IRDA), launched Iskandar Malaysia Employment Grant (IMEG) to offer matching grants to encourage job opportunities in seven targeted group.
Under this scheme the state government will provide: –
a salary grant which amounts to 50% of the worker’s salary up to RM2,500 for 6 months.
Another one-off training grant for workers to upgrade their skills which amounts to 50% of the worker’s salary or up to RM2,500.
Please follow the appended link for the application form: –