New tax Structure For REITs Seen Benefiting Big Players More

In my earlier article,there was mentioned the new tax structure which was not well received.

Further news from The Business Time Malaysia ( 11/9/06)

“By setting the tax rate for local individuals at 15 per cent,this proposal is detrimental to low tax paying individuals ”according to the 2007 Budget commentary and tax information jointly published by three professional bodies of Malaysian Institute of Taxation,Malaysian Institute of Accountants and the Malaysian Institute of Certified Public Accountants.

Currently,local retail investors pay tax on income distributed by the REITs based on their respective tax rates,but they will be taxed at a flat rate of 15 per cent under the new proposal.”

The worst hit would be the pensioners who would have earlier opt for REIT investment compared to some more speculative equity stocks.

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