Malaysia Proposes 2014 Budget

Update from Nair & Co. International Tax Team (Bristol, UK) - The Government of Malaysia has presented its budget for 2014 proposing replacement of Sales and Service tax with a Goods and Services Tax (GST). If passed, the GST will be effective from 1 April 2015 and will impose a standard rate of 6% with 0% on some goods and services. Certain exemptions may also apply. Other proposed provisions of the budget include:        Reduction of about 1 – 2% in income tax rates for co-operatives on taxable income over RM 150,000. A decrease in tax rates in various slabs for individuals by 1-3%. 100% accelerated capital allowance being extended to information technology and communication. Higher deductions for hiring related expenses including work-place benefits, salaries and certain types of training. Income tax rates for companies, limited liability partnerships, trusts and estates of individuals domiciled abroad at the time of their death being reduced by about 1%. Deadline to apply for income tax incentives in case of certain investments being extended to the end of 2016. New “real property gains tax” for Malaysian citizens/permanent residents as well as for companies and foreigners at 0 - 30% and 5 - 30%, respectively. For more information about doing business overseas or to know more about our International Expansion Services and International Tax Services please contact us. Subscribe to regular global tax compliance alerts from Nair & Co. International Business Guide (IBG) is our online platform for companies wishing to optimize their multinational operations and would like to have specific business information for doing business in a particular country - Click Here. Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts. About Nair & Co. Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-pointof-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250

clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at Media Contacts For media enquiries or to learn to more about Nair & Co., please email us at or call Yvonne Smith at +1.408.501.8867

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