KUALA LUMPUR: The authorities has agreed to exempt taxation on foreign source income for resident taxpayers to make sure the graceful implementation of the tax initiative, mentioned the Finance Ministry (MoF).(pic)
The tax exemption is efficient from Jan 1, 2022 to Dec 31, 2026.
Subject to Inland Revenue Board standards and pointers, income tax exemption on dividends can be given to corporations or restricted legal responsibility partnerships whereas people can be tax-exempted for all forms of income.
Meanwhile, the ministry additionally mentioned that the stamp responsibility on contract notes for buying and selling in shares can be capped at RM1,000, with a fee of 0.15%.
The stamp responsibility cap can be legitimate from Jan 1, 2022 to Dec 31, 2026.
Bursa Malaysia Bhd
chief govt officer Datuk Muhamad Umar Swift, in a separate assertion, thanked the federal government for setting the stamp responsibility cap.” src=”https://apicms.thestar.com.my/uploads/photos/2021/12/31/1426528.jpg” onerror=”this.src=”https://cdn.thestar.com.my/Themes/img/tsol-default-image2017.png”” fashion=”width: 620px; top: 409px;” />Bursa Malaysia Bhd chief govt officer Datuk Muhamad Umar Swift, in a separate assertion, thanked the federal government for setting the stamp responsibility cap.
“At Budget 2022, the government had proposed a stamp duty rate on contract notes for trading of stocks on Bursa Malaysia to be reviewed again, so that it is raised from 0.1% to 0.15%, which is equivalent to RM1.50 for every RM1,000 and a stamp duty limit of RM200 for each relevant contract note is repealed.
“Taking into account the views and feedback from various parties to ensure that the stock market remains vibrant and dynamic, the government is imposing a stamp duty rate of 0.15% on contract notes for the trading of shares, with the maximum amount of stamp duty charged per contract note being capped at RM1,000,” it mentioned.
MoF added that stamp responsibility quantities exceeding RM1,000 can be remitted, including that this remittance will apply to all contract notes for transactions of shares listed on Bursa Malaysia.
“The government will always ensure that tax treatment of taxpayers is based on fair and equitable principles, while remaining committed to complying with international taxation best practices.”
Meanwhile, Bursa Malaysia Bhd chief govt officer Datuk Muhamad Umar Swift, in a separate assertion, thanked the federal government for setting the stamp responsibility cap.
“On behalf of the industry, the exchange would like to state our appreciation to the Finance Minister and the MoF for the agility in responding to market operating conditions.
“This moderated approach to the changes on stamp duty exemplifies the government’s attentiveness to industry feedback and in managing the delicate balance between tax collection and nurturing growth in our capital market.”
