Malaaysia

taxationSOCIAL AND ECONOMIC REMIFICATION OF TAX AND NEW RULING

when the Federation of Malaya, Singapore, Sabah, and Sarawak formed a fourteen state federation. Malaysia is located in Southeast Asia, and its local currency is Ringgits (RM) .

In Southeast Asia, the highest income disparity between rich and poor is found in Malaysia. According to the UNHDP report, the richest 10% control the Malaysias 38 .4% of economic income as compared to the poorest 10%, who only control 1 .7%. This further triggers the need for levy of tax . The government of Malaysia levies various kinds of tax; namely, Income tax, Gift tax, Property tax, Estate tax, Sales tax, Corporate tax and so on. The new law will give taxpayers a bit of clarity—and an opportunity to plan with relative confidence knowing that the playing field won’t change dramatically, at least for two years. But beyond that, an increase in the Medicare tax for upper-income Americans is slated for 2013. And more changes are likely in the future, given the pressure to raise revenues to reduce the deficit, and talk of sweeping tax Some of the social and economic remification of tax and new ruling are as follows:

International tax practice

The taxation of international transactions differs from the taxation of domestic economic activity primarily due to the complications that stem from the taxation of the same income by multiple governments. In the absence of double tax relief, the implications of multiple taxation are potentially quite severe, since national tax rates are high enough to eliminate, or at least greatly discourage, most international business activity if applied two or more times to the same income.

The foreign tax credit

Almost all countries tax income generated by economic activity that takes place within their borders. In addition, many countries – including the United States – tax the foreign incomes of their residents. In order to prevent double taxation of the...