BUDGET 2012: TAX IMPLICATIONS

Budget 2012 themed "National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation" was announced by the Prime Minister and Minister of Finance YAB Dato' Seri Mohd. Najib Tun Razak on 7 October 2011. It focused on the following 5 areas:

1. Accelerating investment
   
   
2. Generating human capital excellence, creativity and innovation
   
   
3. Rural transformation programme
   
   
4. Strengthening the civil service
   
   
5. Easing inflation and enhancing the well-being of the Rakyat.

Here are the tax implications of the budget: 

1. Malaysian franchise 

2. Tax administration 

i. Compensation of late refund by income tax

ii. Time bar for audit reduced from 6 years to 5 years

iii. Advance payment of tax by installment

iv. Accessibility to computerized data

v. Power to disregard information furnished after expiry date of notice

vi. Duty to furnish particulars of payments made to agents, dealers or distributors

3. Stamp duty exemption on loan agreements under 1Malaysia Housing program

4. Changes in Real Property Gains Tax

5. Tax incentives

i. Double deduction for structured internship program

ii. Double deduction of expenses for participating in career fairs abroad

iii. Double deduction of expenses for awarding of scholarship

6. Changes affecting individuals

i. Separate relief for contribution to Private Retirement Scheme

ii. Preferential tax rate for returning expert

7. Non tax issue