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 

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2. Tax administration 

i. Compensation of late refund by income tax

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

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iii. Advance payment of tax by installment

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iv. Accessibility to computerized data

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

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

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

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4. Changes in Real Property Gains Tax

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5. Tax incentives

i. Double deduction for structured internship program

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

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iii. Double deduction of expenses for awarding of scholarship

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6. Changes affecting individuals

i. Separate relief for contribution to Private Retirement Scheme

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ii. Preferential tax rate for returning expert

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7. Non tax issue

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