19 Nov Wondering why you’re taxed a lot? Here’s why
Did you know there are many kinds of tax? Some that are automatic or included and others added to your purchase?
Let me tell you the main kinds you may encounter
In Tax ain’t a new concept, we looked at tax in Malaysia: What it is and how to pay it. Now we will look at types of tax, what products and services get taxed and the eligibility for tax.
income tax – Personal and Corporate
Corporations can also imply a ‘Withholding tax’. This is a tax on the pay of employees, agents and business partners who don’t live in Malaysia. So if you are working here, but do not live here, this might apply to you.
the property tax 🏡
When dealing with property tax, there are 4 main types of tax.
There are stamp duties, property assessment tax, quit rent and real property gain tax.
On National Budget Day the revised RPGT rates stated:
For first-time homebuyers who are purchasing residential properties that are priced up to RM500,000 …
The Government will exempt stamp duty of up to RM300,000 on the Sales & Purchase Agreement (SPA) as well as loan agreements for a period of two years until December 2020.
Consumption Tax 🍜 🍲 🍛
When we consume goods or services, we are charged a consumption tax. We we previously mentioned SST and GST, the two kinds of consumption tax that Malaysia has had.
SST is a tax the manufacturers, traders and service providers pay. GST is a tax on the good and services that we consume.
Now, we the newly-elected government, GST is now set for 0%. In the article titled Quick facts on the SST tax, we explore SST in further detail.
Where to from here?
Now that you know the main types of tax, look out for the ones that you might be paying.
It is crucial that you pay your taxes on time so you don’t incur any expensive late fees, or break the law!
At the end of the day, the taxes you pay help the government provide for a better society.
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References:
https://media.giphy.com/media/l0HlIvLpzz624GAUM/giphy.gif
https://loanstreet.com.my/learning-centre/budget-2019-highlights-affect-property-market
https://asklegal.my/p/what-is-strata-individual-title-property-malaysia
https://bizfluent.com/info-8666366-assessment-quit-rent.html
https://www.mahwengkwai.com/understanding-how-real-property-gains-tax-rpgt-applies-to-you-in-malaysia/
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