2008 BUDGET COMMENTARY & TAX INFORMATION

Transcription

1 2008 BUDGET COMMENTARY & TAX INFORMATION Malaysian Institute of Taxation (225750T) Malaysian Institute of Accountants (3246-U)

2 Copyright September 2007 by The Malaysian Institute of Certified Public Accountants (MICPA), Malaysian Institute of Accountants (MIA) and Malaysian Institute of Taxation (MIT). All rights reserved. No part of this publication may be reproduced or transmitted by any or other means, including electronic, mechanical, photocopying and recording or in any information storage and retrieval system, without the prior written permission of the publishers. The views expressed in this publication are not the official opinion of the MICPA, MIA and MIT, their Councils or any of their Committees. The views are provided gratuitously and without liability. Neither the MICPA, MIA and MIT, their Councils or any of their Committees shall be responsible or liable for any claims, loss, damages, costs or expenses arising in any way out of or in connection with any person relying upon such views. Users are reminded that the 2008 proposed tax changes may differ in their final form when passed by Parliament. Published by The Malaysian Institute of Certified Public Accountants (3246-U) 15 Jalan Medan Tuanku, Kuala Lumpur Tel: Fax: Website: Malaysian Institute of Accountants Dewan Akauntan 2 Jalan Tun Sambanthan 3, Brickfields, Kuala Lumpur Tel: Fax: / budget2008@mia.org.my Website: Malaysian Institute of Taxation (225750T) Unit B-13-2, Block B, 13 th Floor, Megan Avenue II No. 12 Jalan Yap Kwan Seng Kuala Lumpur Tel: Fax: secretariat@mit.org.my Website: Printed by Vivar Printing Sdn Bhd ( D) Lot 25, Rawang Integrated Industrial Park Mukim Rawang, Jalan Batu Arang, Rawang, Selangor, Malaysia Tel: Fax:

3 TO OUR VALUED CLIENTS/ASSOCIATE WITH COMPLIMENTS FROM COVER DESIGN 2007 is our nation s 50 th year of independence. It is the year of assessing where we were 50 years ago and where we are today. We see that the milestones we have achieved by our own hands have given us a place in the world today. There is a saying that life begins at 50. The year 2008 will be the beginning of a new era for our country. It will be the time to reach out to embrace the ideals of the world and take ownership of our share of the global village.

4 EDITORIAL BOARD Poon Yew Hoe (Co-Chairman) Harpal Singh Dhillon (Co-Chairman) Adeline Thor Anand Kumar Letchmana Anita Jamaludin Aubrey Lim Belinda Khoo Carol Eng Cheng Keng Haw Cheong Li Wei Chew Siew Lan Chiunh Eiching Chow Chee Yen Derek Chan Chee Wai D. P. Naban (Datuk) Farahwaty Md Ghouse Fennie Lim Phaik Hui Foo Meng Huei Harvindar Singh Ho Yi Hui Hong Boon Toh How Yong Sook Mui Irene Wee Janice Soh Jeyapalan Kasipillai (Dr) Joanne Hooi Joe Khoo Sing Kim Joseph Ho Chee Kong Julie Thong Kevin Chin Koo Kian Ming K. Sandra Segaran Kulwant Kaur a/p Tara Singh Kuo Yew Chee Kwek Saw Hong Larry James Sta Maria Lee Foong Yi Lee Gia Hong Lee Wee Leng Lily Chin Lim Bee Chin Lim Kah Fan Liza Ooi Yap Lin Loo Chen Mei Low Mei Leong Manvinder Singh Mark Chan Mary Zachariah Melissa Yeoh Meor Nasmi Meor M. Albakri Musa Menhat Ng Chooi Fong Nora Aida Sulaiman Nur Ashikin Ong Chong Chee Ong Ewe Kok Ong Gim Yan Poh Sin Yue Rafidah Mohd Noor Robert Yoon Robin Noronha Ros Zamrilah Abdullah Shalini Chandrarajah Sharon Wong Shenara Deshani Ponniah Soh Pin Tau S. Saravana Kumar Sze Tho Wai Leng Tan Hooi Beng Tan Pei Sze Tay Chai Ling Teo Pek Rene Thang Ngar Yee Thomas Teoh Thuang Kah See Vivian New Vong Tze Wee Wan Chee Khei Wong Man Yee Wong Tzh Shin Woon Yoke Lee Yap Mei Sei Yee Chia Ping Yeow Sze Min ACKNOWLEDGEMENT The 2008 Budget Commentary & Tax Information is published by the MICPA, MIA and MIT in association with the following accounting firms, law firm and professional body: Advent Tax Consultants Sdn Bhd BDO Binder Tax Services Sdn Bhd Deloitte KassimChan Tax Services Sdn Bhd Ernst & Young Tax Consultants Sdn Bhd Horwath KL Tax Sdn Bhd KPMG Lee Hishammuddin Allen & Gledhill Moores Rowland PricewaterhouseCoopers Taxation Services Sdn Bhd The Malaysian Institute of Chartered Secretaries and Administrators

5 FOREWORD Let s celebrate that we are 50 years young! Malaysia turned 50 on 31 August What an auspicious age. For Malaysians, this would be a good reason for a sumptuous banquet! To the godly, 50 is an age to thank God for because every extra day is a bonus. It is an age when one has so many reasons to celebrate. He would be financially stable as a businessman or a key member of management, and his children would be growing into adulthood. It would be the time to enjoy the fruits of his 50 years labor. The young may think he is ancient and irrelevant but he knows better. He knows that he possesses a wealth of experience which only time can buy. He exudes a sense of quiet confidence in his achievements and extends a considerate respect for the young. 50 is an age to prepare for retirement but for some, 50 is an age when life just starts. 50 is therefore a time of hope, of looking back, of thankfulness and of celebration. Unlike a man who can grow old and weak as the years go by, a nation is like fine wine which gets better with age. 50 years may be a long time for a man but short for a nation. Under good leadership and with the combined talents of the citizens, a 50 year old nation can possess the wisdom of the old, and the energy of the young. Malaysia is a like a man of 50 but one who is still vibrant, robust and raring for action. Looking back, Malaysia has certainly achieved a lot in the last 50 years and instead of settling back, the nation is powering forward with ambitious projects and plans. There are many good years to come. We have come of age no doubt but much still needs to be done. To move this forward, the National Budget shows both urgency and ambition, spurring the Rakyat to achieve more in less time. There is an impetus for action through incentives and investments, and the daring are urged to seize the opportunities that abound. Having reached 50, we thank our fellow Malaysians for traveling with us on this journey and reaching this milestone together. Let us join hands to make this country into a better place to live and work in. Let it be a country with the right virtues of resourcefulness, tolerance, patience and diligence hardwired into us. Our dreams? To have a richer and better Malaysia, a land of opportunity, a land to call home, a land for dreams to come true, a haven for bringing up children, a land to have friends, a land to love and to be loved; a peaceful, prosperous and united Malaysia! Prepared by: Poon Yew Hoe 7 September 2007

6 Malaysia Commerce Clearing House (M) Sdn Bhd ( M) Suite 9.3, 9th Floor, Menara Weld, 76, Jalan Raja Chulan Kuala Lumpur, Malaysia Tel: (603) Customer Service Hotline: Fax: Web site: CCH Asia Pte Limited (Registration number: K) 11 Keppel Road #11-01 RCL Centre Singapore Tel: (65) Customer Support Hotline: Fax: The Malaysian Institute of Taxation, Malaysian Institute of Accountants and The Malaysian Institute of Certified Public Accountants thank CCH Asia Pte Limited for their invaluable collaboration in the publication of the 2008 Budget Commentary & Tax Information.