CTIM Memorandum on 2014 Budget Proposals (Summary)

Please be informed that the Institute has prepared and submitted a Memorandum on 2014 Budget Proposals (Summary) to the Ministry of Finance on 7 June 2013.

The Institute has made, inter alia, the following proposals in the Memorandum on 2014 Budget Proposals:-

1. Reduce revenue leakage on rental paid to foreign landlords;

2. Impose business exit tax for businesses moving out of the country;

3. Facilitate tax compliance by allowing a deduction for compliance tax fee paid to an approved tax agent, simplifying tax compliance processes, removing onerous laws, etc.;

4. Review the penalty provisions;

5. Improve transparency and clarity in laws and regulations by ensuring the timely availability of legislative framework for new measures, and judgement of decided tax cases;

6. Ensure strict application of decision by the Courts, and non-retrospective application of laws, rulings and guidelines, etc.;

7. Enhance the growth of the services industry by allowing IBA for office buildings and renovations costs;

8. Allow course fees for more professional examinations to be deductible under S46(1)(f); and

9. Improve the public consultation process.

Members may view the CTIM Memorandum on 2014 Budget Proposals (Summary) at the Institute’s website.

IRB’s ANSWERS TO QUESTIONS ON 2013 BUDGET PROPOSALS

Please note that the Inland Revenue Board of Malaysia has recently published the reply to some questions asked at the National Tax Seminar 2012, on issues arising from proposals made in the 2013 Budget. The answers relate to the following topics:

• Limited Liability Partnership (LLP); 
• Special deduction for expenditure on Treasury Shares; 
• Business Trusts; 
• New section 4B on interest income; 
• Schedule 3 of the Income Tax Act 1967 (new paragraph 61A relating to Assets Held For Sale); 
• Real Property Gains Tax Act 1976, paragraph 2, Schedule 4 exemption; 
• Accelerated capital allowance for security control and surveillance equipment; 
• Reduction of time bar for raising assessments or additional assessment to 5 years (from 6); 
• “Angel investors” 
• Incentive for small Malaysian service providers to merge into larger entities; 
• Appeal to Special Commissioners of Income Tax for amounts not liable to be paid under sections 109, 109B OR 109F of the Income Tax Act 1967. 
• Incentives for preschool education; 
• Incentive to acquire a foreign company; 
• Global Incentive For Trading (GIFT); 
• Incentive (Investment Tax Allowance) for qualified companies engaged in refinery activities. 

Members may also view the Answer to Questions on 2013 Budget Proposals at the Institute’s website.

MOF 2013 Budget Portal

The Ministry of Finance has developed an official website for the 2013 Budget. Members may view the live telecast of the 2013 Budget Speech announcement at the http://www.treasury.gov.my/media_bi.html. The 2013 Budget Speech & Appendices, Economic Report 2012/2013 and the 2013 Estimated Federal Expenditure are also available for download on 28 September, 2012 from 6.00 pm.

Members may also download the 2013 Budget Speech & Appendices from the following agencies:



1) Royal Malaysian Customs Department at www.customs.gov.my
2) Inland Revenue Board of Malaysia at www.hasil.gov.my
3) Securities Commission Malaysia at www.sc.com.my
4) Central Bank of Malaysia at www.bnm.gov.my