Corporate Investor Opportunities

Guidelines

Stamp Duty
Stamp duty for loan documentation is governed by the Stamp Act 1949. Generally, the principal instrument is stamped at a rate of RM5 for every RM1,000 of the loan amount value. Stamp duty on the document of transfer calculated as follows:

• 1% of capital value on the first RM100,000;
• 2% of capital value on any amount in excess of RM100,000 but not exceeding RM500,000;
• 3% of capital value on any amount in excess of RM500,000.

Income Tax
All individuals are liable to pay tax on income accrued in, derived from or remitted to Malaysia. However, non-resident individuals will be taxed only on income earned in Malaysia. The rate of tax depends on the individual's resident status, which is determined by his duration of stay in the country as stipulated under Section 7 of the Income Tax Act 1967.

From 1 January 2010, a non-resident individual is liable to pay tax at the rate of 26% without any personal relief. However, rebate can be claimed in respect to fees paid to the government for the issuance of employment work permits. Visit the Inland Revenue Board's website for a comprehensive breakdown on amount taxable.

Withholding Tax
Withholding tax is an amount withheld by the party making payment on income earned by a non-resident and paid to the Inland Revenue Board of Malaysia. Withholding taxes is deducted for contributions related to dividends from REITS.

Malaysia has Double Taxation Agreements (DTA) with several countries. Consult with certified tax consultants for further explanation on this matter.

Quit Rent
Quit rent is a form of land tax collected by State Governments. The amount of quit rent varies from state to state as well as according to locality and category of land use within each state.

Assessment Rates
Half yearly assessment rates is collected by the local authorities for the provision of services to the residents. The amount and classification of properties varies from one local authority to another. In most states, the amount of assessment tax a house-owner pays is calculated on a percentage of the annual value of the property which is the total value of bare rents if the house is rented out in the open market.

Sources: Malaysian Economy in Figures 2010 (Economic Planning Unit), Social Statistics Bulletin Malaysia 2009 (Department of Statistics)