Marsden Law Book

100 Ways to Save Tax for Malaysian Investors is written specifically to help Malaysians understand the way tax applies to different kinds of investment and how it can impact on the investor. It is designed to inform and educate not only the individual investor but also companies and other bodies in the private sector, including their directors, managers and owners as well as investment advisers and managers and other professional advisers, such as accountants and lawyers. The main focus is on investment in Malaysia by Malaysians but the book also covers the tax implications of investment overseas including investment in Labuan as well as investment by non-residents and by successful applicants under the Malaysia My Second Home programme

100 Ways to Save Tax in Malaysia for Property Investors is a comprehensive guide to the tax implications of property investment and property ownership. As a work that collects together in one source all of the tax issues relevant to property investment and ownership, it is an invaluable tool to help investors in their vital decision-making processes. The book covers the specifics of the taxation of property income, which is in many ways distinct from the taxation of other kinds of income. In doing so, it discusses the setback for investors resulting from the re-classification of property income between “investment” versus “business” income and the need to adapt. The availability of deductions and capital allowances against rental income is discussed with clear examples. The subject of investment holding companies is given a special chapter in view of its particular implications for property investors. Besides dealing with the taxation of property income, the book covers other areas of taxation including real estate investment trusts (REITs) and assessment tax which have relevance for the property investor. Tax-saving strategies which include tax deferment, tax reduction and elimination of tax liability are explored with practical illustrations. Due to its significance a completely new chapter is devoted to Goods and Services Tax (GST) which is due to be introduced in Malaysia on April 1, 2015.

Wary property investors should also be aware of the tax implications of dealing with properties in such a way that a profit on sale becomes liable to income tax. In this context, the “badges of trade” are examined and useful guidelines and examples are provided. Stamp duty which is a significant cost for property investors is also covered by the book including the calculation of advance stamp duty. This book contains a wealth of ideas to help you to minimise the taxes you have to pay and to plan your future actions so as to pay as little tax as possible, using simple everyday language and practical examples to illustrate them. It is certainly a book not to be missed by property investors, tax consultants, real estate consultants, estate agents, lawyers, landlords and anyone with an interest in property income.

Highlights of new materials covered in this edition:

• Substantially increased RPGT rates for disposals on and after January 1, 2014.
• Tax to be withheld by the acquirer of real property or RPC shares.
• Tax implications on conversion of a partnership or a company to a limited liability partnership (LLP).
• The potential for joint and several liability of a director is increased.
• Working of GST in relation to property-related transactions.