Tax Budget 2023 - Others

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim have proposed some changes to the income tax rates under the new Budget 2023.

Key summary on tax budget 2023 for Others

Capital Gain Tax

The proposal to introduce a capital gains tax (CGT) on the disposal of unlisted shares has been welcomed as a move in the right direction by economists but a tax expert has cautioned a more in-depth study is needed.

The proposal is a sign the government is kickstarting its move to impose taxes on more capital items in the future.

Tricor Malaysia chairman Veerinderjeet Singh opines the government would have in theory three mechanism options for CGT implementation.

“Either a new legislation on CGT will be introduced, or the existing legislation on real property gains tax (RPGT) will be amended to include the sale of shares of unlisted companies, or it will be added within the Income Tax Act by defining it to include certain capital gains, which can be reported annually.”

Luxury Goods Tax

A luxury tax is a tax imposed on goods that are considered expensive, unnecessary and unimportant. Such items include cars, private jets, yachts and jewellery.

Retabling the budget in the Dewan Rakyat last week, Anwar who also holds the finance portfolio said that the government had no plans to reintroduce the goods and services tax (GST).

In Norway, cars and chocolate alike are considered a luxury and subject to a luxury tax.

Let’s see how the government come out with detailed implementation in the coming months.

Special Voluntary Disclosure Program (SVDP)

The IRB and RMCD will implement the SVDP again. Under the SVDP, a 100% penalty remission will be granted with effect from 1 June 2023 to 31 May 2024.

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