Government eyes annual revenue of RM800 mln via CGT implementation - MoF
Bernama
November 8, 2023 03:50 MYT
November 8, 2023 03:50 MYT
The government is expected to collect about RM800 million in annual revenue from the implementation of the capital gains tax (CGT) effective March 1, 2024, said the Ministry of Finance (MoF). - BERNAMA
KUALA LUMPUR: The government is expected to collect about RM800 million in annual revenue from the implementation of the capital gains tax (CGT) effective March 1, 2024, based on share ownership transfer trends in recent years, said the Ministry of Finance (MoF).
In a written reply in the Dewan Rakyat on Tuesday, the ministry said the CGT, to be imposed at a rate of 10 per cent on net gains, will only be applicable to the disposal of unlisted shares of companies, limited liability partnerships, cooperatives and trusts, whether local or foreign entities that are shareholders in a company.
"The relevant legislative amendments are being implemented towards this end.
"Guidelines will also be issued to provide more clarity on the implementation of the CGT," said the MoF.
According to the ministry, the government's decision not to impose the CGT on listed shares is to ensure that the capital market continues to grow for existing listed companies and in line with efforts to maintain investor confidence.
"This will also allow us to raise the competitiveness of the country's capital market at the global level," the MoF said in response to a question from Datuk Dr Mohd Radzi Md Jidin (PN-Putrajaya).
After taking into account stakeholders' feedback, the government is of the view that this maiden step of imposing CGT on the disposal of unlisted local shares by taxpayers other than individuals is appropriate, the ministry said.
Among the stakeholders which provided feedback were the Malaysian International Chamber of Commerce and Industry, Associated Chinese Chambers Of Commerce and Industry of Malaysia, and Malaysian Investment Banking Association.
"This step is also in line with the direction of facilitating and improving aspects of tax administration, in addition to being one of the efforts to diversify the sources of national income," he said.
-- BERNAMA