Malaysia: National Budget 2019

The 2019 National Budget with the theme “A Resurgent Malaysia, A Dynamic Economy, A Prosperous Society” was tabled on 2 November 2018 by our Minister of Finance, YB Lim Guan Eng. Further to the Budget 2019 announced on 2 November 2018, Finance Bill 2018 was passed in the House of Representatives with amendment in Committee to the Finance Bill on 10 December 2018. Some of the important amendments are summarised below: 

Limitation on carry forward business losses & capital allowance

Currently, there is no time limit on carry forward of the business loss and various allowances. The Finance Bill 2018 and Amended Finance Bill 2018 proposed a 7-year time limit for utilisation of business losses and various allowances as follows:

Scope of Special Classes of income 

The scope of special classes of income is extended to include non-technical services and not limiting the scope of services to technical management or administration of an undertaking, venture, project or scheme.

Real Property Gains Tax (RPGT) 

The rate of RPGT on gains from the disposal of real properties or shares in real property companies in the sixth and subsequent years of disposal are revised as follows:

Note 1 – Finance Bill 2018: The increased rate does not apply to the disposal of residential homes valued below RM200,000 by Malaysian citizens. 

Note 2- Amended Finance Bill 2018: The acquisition price of real property acquired prior to 1 January 2000 shall be taken as its market value as at 1 January 2000.

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