Dear Valued Clients,
Welcome to our E-Newsletter May 2019
We have just closed in the first quarter of 2019. Despite the heightened uncertainties of the global economy, Malaysia’s economy has portrayed a resilient performance.
Malaysia’s Economic Performance
According to Bank Negara Malaysia’s (“BNM”) 2018 Annual Report, domestic growth will be the backbone of Malaysia’s economic growth for 2019 where the rising demand from the private sector will be the nation’s main driver for economic growth. While private consumption is projected to grow by 6.6%, private investments are expected to grow by 4.9% in 2019. The World Bank Group has remained Malaysia’s 2019 gross domestic product (GDP) growth forecast at 4.7%.
Meanwhile, the monetary poverty is expected to continue to contract in 2019, with an expected decline to 1.4% based on the upper-middle-income countries (UMIC) poverty line of US$5.50 (US$1=RM4.12) per person per day in 2011. As we are heading into 2020, experts predict that Malaysia’s economy is projected to expand at 4.6% where Malaysia anticipates achieving high-income country status by 2024.
Important Tax Deadlines
As the title implies, these are the important tax deadlines that you want to mark in your calendar:
- 30 April 2019: BE Form (for individuals whose income is without business source)
- 30 June 2019: B Form (for individuals whose income includes business source)
- 30 April 2019: M Form (for a non-resident individual – resident in Malaysia for less than 90 days in the tax year whose income is without business source)
- 30 Jun 2019: M Form (for a non-resident individual – resident in Malaysia for less than 90 days in the tax year whose income includes business source)
- 30 June 2019: P Form (for a partnership)
Apart from the tax deadlines, I would like to also highlight that the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri Malaysia or LHDN) has announced that revenue received from Singapore will not be taxed. The announcement cleared the air by addressing the confusion over the revenue received from/generated in Singapore and the basis of determining resident status for purposes of imposition income tax. In general, under the Act Income Tax 1967 (ACP), taxable income is the revenue derived from Malaysia as a business or employment source. As such, income received from Singapore (which results from paid employment done in Singapore) is not taxable in Malaysia.
On a final note, 3E Accounting believes that the highest standards of corporate governance will underpin the delivery of our strategies as well as the success of our business, while the passion and commitment of our people are the key enablers. The brilliant combination of the excellence of our people and our state-of-art operating platform allows us to fully invest in our strong brands. As we look to the next quarter of 2019 and beyond, we continue to see multiple avenues for profitable growth and business expansion.
Thank you and happy Labour Day!
Read More in our E-Newsletter May 2019.