The Prime Minister, YAB Dato' Sri Mohd. Najib Tun Abdul Razak, who is also the Minister of Finance, presented the 2010 Budget on Friday, 23 October 2009.
The 2010 Budget's theme is "1Malaysia, Together We Prosper" and will be the foundation for the development of the new economic model and the formulation of the 10th Malaysian Plan. In tandem with the 1Malaysia concept, the focus of this Budget is the well-being of Malaysians.
This Budget focuses on three strategies:
(1) Driving the nation towards a high-income economy;
(2) Ensuring holistic and sustainable development; and
(3) Focusing on the well-being of Malaysians.
These strategies include measures to more than double the per capita income of Malaysians in the next 10 years, ensure balanced development to narrow the gap between urban and rural areas and ensure Malaysians enjoys the benefits of development in a peaceful and safe environment.
2010 Budget Highlights:
(1) Deductions to small and medium enterprises (SMEs) for expenses incurred in the registration of patents and trademarks in Malaysia.
(2) Enhancement of exemption from 50% to 100% of the value of increased exports for health care service providers offering services to foreign clients in Malaysia.
(3) Introduction of income tax exemption equivalent to 100% of additional capital expenditure incurred to obtain Green Building Index certificate.
(4) Tax exemptions for insurance and takaful companies on profits of newly established overseas branches and income remitted by new overseas investee companies. This extension also applies to banks.
(5) Deduction on expenses incurred in the issuance of Islamic securities extended to Year of Assessment (YA) 2015.
(6) Extension of deduction for expenses incurred in the issuance of Islamic securities to include Islamic securities approved by the Labuan Offshore Financial Services Authority (LOFSA)
(7) Exemption on profits derived from non-RM sukuk approved by LOFSA.
(8) Extension of exemption of interest paid to individuals, unit trusts and listed closed-end fund on RM Islamic securities.
(9) Increase in personal relief for individuals from RM8,000 to RM9,000.
(10) Reduction of resident individual tax rate from 27% to 26% for chargeable income exceeding RM100,000.
(11) Reduction of non-resident individual tax rate from 27% to 26%.
(12) Relief of up to RM500 per year to individuals for broadband subscriptions.
(13) Preferential tax rate of 15% on employment income of resident knowledge workers engaged in qualifying activities and residing in Iskandar Malaysia.
(14) Reintroduction of Real Property Gains Tax at a rate of 5% tax on gains from the disposal of real property.
(15) Liberalisation of foreign ownership in corporate finance and financial planning companies. The present 30% local shareholding requirement will be removed.
(16) The Government announced that it is at the final stage of completing the study on whether to implement Goods and Services Tax.
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