Editorial Team – [2023] 155 taxmann.com 425 (Article)
World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.
(1) Malaysia Presents Budget for 2024; extends tax relief for providing EV charging facility
Malaysia tabled its Budget for 2024 On October 13, 2023. The Key highlights of the Budget 2024 are as follows:
(a) Extension Of Individual Income Tax Relief For Electric Vehicle Charging Facilities
Individual income tax relief up to RM2,500 on expenses related to installation, rental, purchasing including hire-purchase equipment or subscription fees for Electric Vehicle (EV) charging facilities was given for the year of assessment 2022 and the year of assessment 2023. To further support the development of the local EV industry, it is proposed to extend the relief for a period of 4 years i.e., from the year of assessment 2024 until the year of assessment 2027.
(b) Capital gains tax on disposal of unlisted shares
Capital Gains Tax on the disposal of unlisted shares for companies are as follows:
- If the shares are acquired before March 01, 2024: The taxpayers can either pay 10% on the net gain of the disposal of shares; or 2% on the gross sales value.
- If the shares are acquired after March 01, 2024: 10% on the net gain of the disposal of shares
(c) Stamp Duty For Property Ownership By Non-Citizen
Earlier, Foreign-owned companies and non-citizen individuals were required to pay stamp duty based on the sale price/ Market value of property ranging from 1% to 4%. Now, it is proposed a flat rate stamp duty of 4% be imposed on the instrument of transfer executed by foreign-owned companies and non-citizen individuals (except Malaysian permanent residents). The proposal will be applicable for instrument of property ownership transfer executed from January 01 2024.
(d) Tax Incentive For Women Career Comeback Programme
Women on career break and returning to work are eligible for income tax exemption on employment income received for a maximum period of 12 consecutive months, which is to be extended from the the year of assessment 2025 until the year of assessment 2028.
(e) Extension Of Tax Incentive For Rental Of Electric Vehicle
In the 2023 Budget, companies that rent non-commercial electric vehicles (EV) were given tax deduction up to RM300,000 effective from the year of assessment 2023 until the year of assessment 2025. To encourage the use of EVs and to support the green mobility ecosystem in line with the National Energy Transition Roadmap, it is proposed tax deduction on EV rental costs be extended for a period of 2 years, i.e., Until the year of assessment 2027.
Source: Budget 2024
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