Many taxpayers are still in doubt over deductible claims. Here are more advice from the Inland Revenue Board to ease taxpayers' worries.
One difficulty when filing one's taxes is the differing interpretations of the Income Tax Act provisions. Then there are the amendments or new reliefs introduced every year.
Last week, capital gains tax became a point of contention. According to the IRB, the net profit gained from the share market is taxable if the transaction is done repeatedly.
However, as one reader wrote in, most people are of the view that capital gains from stock investing in Malaysia are not taxable, a perception that is propagated on the Internet.
This is the IRB's further clarification on the perplexing issue. Profits derived from dabbling in the share market is an adventure in the nature of trade and is taxable as a business income if some characteristics of the badges of trade as follows exist: profit-making motive such as engaging the service of a portfolio manager; assets were purchased with the intention of selling for profit; and the period of ownership.