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Malaysia Budget 2014

The Malaysia Budget 2014 aimed to address fiscal deficits and trade imbalances through tax reforms. It proposed introducing a goods and services tax of 6% to replace existing sales taxes, reducing corporate and personal income tax rates, and providing tax relief and financial assistance to low-income groups and small businesses. Key changes included a RM2,000 tax relief for monthly incomes up to RM8,000, reducing the corporate tax rate from 25% to 24% and the small business rate from 20% to 19%, and lowering personal income tax rates by 1-3 percentage points.

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47 views2 pages

Malaysia Budget 2014

The Malaysia Budget 2014 aimed to address fiscal deficits and trade imbalances through tax reforms. It proposed introducing a goods and services tax of 6% to replace existing sales taxes, reducing corporate and personal income tax rates, and providing tax relief and financial assistance to low-income groups and small businesses. Key changes included a RM2,000 tax relief for monthly incomes up to RM8,000, reducing the corporate tax rate from 25% to 24% and the small business rate from 20% to 19%, and lowering personal income tax rates by 1-3 percentage points.

Uploaded by

Low Xin Nan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Malaysia Budget 2014

The Malaysia Budget 2014 was tabled on 25 October 2013 by the Finance Minister
(and Prime Minister) of Malaysia, Najib Tun Razak. Budget 2014 is seeking to
address a large fiscal deficit and shrinking current account that are concern by
investors from other country. Hence, it is important for us to highlight the parts which
influence to taxation system Malaysia. Following are highlights parts:
TAX RELIEF
* Government proposes a special tax relief of RM2,000 be given to taxpayers with a
monthly income up to RM8,000 received in 2013.
GOODS AND SALES TAX
* To implement goods and services tax (GST) on April 1, 2015 -17 months from now.
* GST rate fixed at 6%, replaces current sales tax and service tax.
* Sale, purchase and rental of residential properties as well as selected financial
services are exempted from GST.
* Training grant of RM100 million will be provided to businesses that send their
employees for GST training in 2013 and 2014.
* Financial assistance amounting to RM150 million will be provided to small and
medium enterprises for the purchase of accounting software in 2014 and 2015.
CORPORATE TAX
* Corporate income tax rate be reduced by 1 percentage from 25% to 24%.

* Income tax rate for small and medium companies will be reduced by 1 percentage
point from 20% to 19% from the year of assessment 2016.
INCOME TAX
* Government to give one-off cash assistance of RM300 to low income group
* Personal income tax rates be reduced by 1 to 3 percentage points for all tax payers.
* Individual income tax structure will be reviewed
* Chargeable income subject to the maximum rate will be increased from exceeding
RM100,000 to exceeding RM400,000.
* Current maximum tax rate at 26% to be reduced to 24%.
* Measures to be effective in 2015.

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