'Difficult to assess budget without Finance Bill'
KUALA LUMPUR: The budget announcement this year is somewhat unusual as the Finance Bill was not released alongside the prime minister's budget speech, according to a tax expert.
"In my 20 years as a tax practitioner in Malaysia, this is the first time that the budget was released without the Finance Bill and it made it somewhat difficult to draw out the exact impact it would have on the local tax industry," said Taxand Malaysia Sdn Bhd managing director Renuka Bhupalan.
The 2014 Budget also proposed a tax relief of RM2,000 to tax payers with a monthly income of up to RM8,000 received in 2013.
Renuka said income may not be salary alone but includes side incomes or personal business.
"If all that accumulate to up to RM8,000, then it would benefit the individual," she said.
KPMG Malaysia executive director Nicholas Crist said the RM8,000 cut-off point for the income tax relief could mean that Malaysia is targeting to move up the value chain.
"If carried out, this new tax measure would enable tax savings of up to RM480, depending on the amount of tax payable after taking into consideration all the deductions," he said.
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