Posted by 3iii > 2018-10-11 18:26 | Report Abuse

http://www.investlah.com/forum/index.php/topic,79312.msg1558423/topicseen.html#msg1558423


India introduced taxation on income earned from selling shares recently. Let us have a look at this.


Summary

1. Long term capital gain of more than Rs. 1 lakh on sale of equity shares or equity oriented units of mutual fund, the gain made will attract a capital gains tax of 10%.


2. Short term capital gains are taxed at 15% irrespective of your tax slab.


3. Any short term capital loss from sale of equity shares can be set off against short term or long term capital gain from any capital asset. If the loss is not set off entirely, it can be carried forward for a period of 8 years.


4. Long term capital loss arising from such listed equity shares, mutual funds etc would be allowed to be carried forward to subsequent eight years for set-off against LTCG.





Should Malaysia introduce something that is quite similar, what will be the impact on:

1. Short term traders?
2. Long term investors?
3. The stock-broking industry?

Posted by relaks > 2018-10-11 18:38 | Report Abuse

"If CGT is introduced here, the likelihood of both local and foreign investors to trade in Malaysia will decline. They would choose other bourses to invest because they would not be taxed," he said.

He added that companies that want to be listed on the bourse would have difficulty in doing so to get additional capital to expand their business or to build new factories.

"Because of this, their business can't grow further, affecting job creations and economic activity. In this era of globalisation, it is easy for Malaysian companies to list themselves on the stock exchange of other countries," he said.

Najib said that the biggest investors in Malaysia are institutions owned by the EPF, Tabung Haji, PNB and private trading companies.

"When the demand for Malaysian shares falls, the prices will fall and result in losses to these institutions," he said.


Read more at https://www.thestar.com.my/news/nation/2018/10/11/where-are-we-headed-malaysia-najib-asks-after-bursa-tumbles/#4SjdBGmktTO2i4FM.99

Posted by Junichiro > 2018-10-11 19:24 | Report Abuse

To date, the government has no given any indication that there won't be CGT on share trading in view of the 2nd day of tumble. Everyone is playing safe n assume that the will be such tax coming.
If it does come, Bursa will lose its dynamism. The market will be as good as dead. Volume will decline greatly. So CGT is self defeating as there is not much gains to tax.

Tomorrow be probably won't be good.

Posted by Junichiro > 2018-10-11 19:33 | Report Abuse

"About a week ago, at the open forum, ....... and he might consider profit gain tax on share investment of listed companies."

Looking at what KYY wrote, be prepare for a Bursa crash. I am staying away for the time being. If u have lots of holdings of shares in Bursa, only God can help you.

Posted by nkw014 > 2018-10-11 20:37 | Report Abuse

Maybe we're just to emotion with things that not even been clarify. Even if it turn out to be true, just let it be. If our nation can go through 1997 during Dr M time, I don't see any reason why we can't do it again. Till today we're still paying MAS debt, 1Mdb debt it's just another excuse.

Posted by pussycats > 2018-10-12 14:39 | Report Abuse

He said that Singapore and Hong Kong, which have more active and bigger stock markets, did not impose CGT.

"If CGT is introduced here, the likelihood of both local and foreign investors to trade in Malaysia will decline. They would choose other bourses to invest because they would not be taxed," he said.

He added that companies that want to be listed on the bourse would have difficulty in doing so to get additional capital to expand their business or to build new factories.

"Because of this, their business can't grow further, affecting job creations and economic activity. In this era of globalisation, it is easy for Malaysian companies to list themselves on the stock exchange of other countries," he said.

He said that the biggest investors in Malaysia are institutions owned by the EPF, Tabung Haji, PNB and private trading companies.

"When the demand for Malaysian shares falls, the prices will fall and result in losses to these institutions," he said.

Posted by Junichiro > 2018-10-12 15:14 | Report Abuse

those foreign bourse would be laughing their way to the bank.

Posted by joetay > 2018-10-13 10:31 | Report Abuse

there r many ways to raise revenues, but putting taxes on bursa is not one of them.

firstly, the liquidity of bursa is alrdy thin as it can be. a cgt will most likely result in many investors only focusing on the high dividend and big cap stocks. thereby neglecting quality mid/small cap stocks.

this brings in a high possibility that participation in bursa will be even lower as small retailers will retreat further from the market.

lastly, the costs of compliance. will the cgt be collected by investment banks or individuals have to do the reporting?

instead of simply imposing taxations, work on plugging the leakages. i dont see town councils cracking down on illegal car wash or coffee shops.

Posted by tecpower > 2018-10-13 10:37 | Report Abuse

中國9月出口增14.5%　遠超預期 | http://www.klsescreener.com/v2/news/view/442872

Posted by tecpower > 2018-10-13 10:52 | Report Abuse

8月制造业销售扬8.1% | http://www.klsescreener.com/v2/news/view/442674

Posted by ahbah > 2018-10-13 11:20 | Report Abuse

CGT ... a certain financial death sentence for Malaysians !

Posted by hstha > 2018-10-13 11:44 | Report Abuse

The sales and services tax (SST) should be increased instead of implementing the capital gain tax. Increasing SST is more effective to increase the country' revenue because all Malaysian people need to pay it. In constract, only some people need to pay CGT.

Posted by hstha > 2018-10-13 11:51 | Report Abuse

Hong Kong and Singapore do not impose the CGT.
Stocks in emerging markets are bearish due to US-China trade war concerns.
I believe imposing CGT will have a great impact on the Malaysian market.

Imposing CGT should be delayed by a few years.

Posted by TrippleZ > 2018-10-13 12:04 | Report Abuse

hstha, increase SST will defeat the purpose of removing GST.

Posted by chinaman > 2018-10-13 15:14 | Report Abuse

Close down bursa, Close down genting, close down 4D GAME, much better. All are gambling, not halal, anyway. we fully support govt. wakaka

Posted by chinaman > 2018-10-13 15:17 | Report Abuse

close down alcohol factory, Heineken, etc. as well. We fully support Islamic way of life, healthy lifestyle. wakaka

Posted by chinaman > 2018-10-13 15:18 | Report Abuse

I'll vote for PAS in next GE. wakaka

Posted by investor1458 > 2018-10-13 16:06 | Report Abuse

Let's vote out PH in the next election if capital gain tax is implemented.

Posted by samyew1234 > 2018-10-13 18:51 | Report Abuse

thank u lge

Posted by AlphaJuliet1708 > 2018-10-13 20:11 | Report Abuse

I wonder what's so important about this Proton 3.0 thing. Aren't we already have too many cars on the road? So many cars, each car with one driver without any passengers whatsoever.

Posted by EngineeringProfit > 2018-10-13 20:16 | Report Abuse

NEW MALAYSIA.MUST NOT END UP SYNONYM TO NEW TAXES

AND PH MUST NOT END UP A MISNOMER

GOD IS WATCHING

Posted by lizi > 2018-10-13 20:26 | Report Abuse

LAST TIME I ALREADY SAID, JUST REDUCE THE GST RATE...SO SIMPLY....SO EASY.....NO HASSLE AND YET GET IMMEDIATELY SEE COST PRICE REDUCTION EFFECT....NO OVERHEAD FROM CHANGING SYSTEM.....

PH GOV IS SO EGO....DIE DIE CHANGE T0 SST WITH FLAW ARGUMENT....I DIAM DIAM....BUT NOW WITH CGT I CANNOT DIAM DIAM....WANT TO SHOOT THEM....

Posted by AlphaJuliet1708 > 2018-10-13 20:32 | Report Abuse

I'm okay with reducing the GST rate tho.

Posted by EngineeringProfit > 2018-10-13 20:33 | Report Abuse

Tax issue...yes. BUT BIGGER ISSUE NOW IS LAME GOMEN

Posted by AlphaJuliet1708 > 2018-10-13 20:35 | Report Abuse

Blame the 'kerajaan terdahulu'.

Posted by ABSBOSS > 2018-10-13 20:35 | Report Abuse

Hope CGT if they implement will affect ASB and ASN holder.... See how malaysian will get fedup with this govt

Posted by EngineeringProfit > 2018-10-13 20:43 | Report Abuse

Landing resource-rich nation in such deepshit has to be blamed

Fail to reset all the wrong policies the second time is just too lame


(...and insane.....because insanity is doing the same thing over and over again and expecting a different result )

Posted by paperplane > 2018-10-13 20:49 | Report Abuse

They claims taxing from your gain is fair.... Duh. But what if i lose 100%ah??can claim back?

Posted by hollandking > 2018-10-13 20:52 | Report Abuse

currently is just rumour there's cgt BUT I'll be careful. If got CGT, quite certain those still holding a lot, u r sure to get burnt kao kao. So to uncle kyy, be careful.

Posted by paperplane > 2018-10-13 20:53 | Report Abuse

Increase sin tax loh, drink alcohol pay 100%more, same with smoke

Posted by paperplane > 2018-10-13 20:54 | Report Abuse

If introduce capital gain tax i will sell all Malaysia stocks straight, move my money to China since China stock dropped a lot, tje currency so low now, near 7,i got more potential to gain frpm hong kong and China.

Posted by paperplane > 2018-10-13 20:55 | Report Abuse

Even my capital return flat, i bet my forex gain can be lucrative

Posted by gsi723 > 2018-10-13 20:57 | Report Abuse

claiming that only the rich buy share & easily making a lot of money from share market is simply cheap political talk.. earning from share trading is no-brainer game? bull shit.

Can we claim tax rebate if losing from share-trading then?

the PH Govt particularly LGE claimed billions has been stolen from Govt account, why still nobody got arrested & charged? come on... recover those stolen billions should be his priority!

Posted by Up_down > 2018-10-13 21:13 | Report Abuse

What's the difference between abolishing GST and restoring SST plus additional taxes? The net effect seems not much after taking into account confusion to the public. Another big issue is Tolls abolishing fail. PH government is seen simply dish out their manifestos to fish Rakyat. Why not restore back GST and abolishing tolls? At least, the government fulfill one of their major manifesto.

Posted by EngineeringProfit > 2018-10-13 21:19 | Report Abuse

Ego.....too egoistic to listen

.....to admit wrong and switch back from SST to GST

Posted by AlphaJuliet1708 > 2018-10-13 21:24 | Report Abuse

Forget abolishing tolls.

Just bring the petrol price down to RM2.00. At least that will very slightly fulfill one of their manifestos.

Posted by AlphaJuliet1708 > 2018-10-13 21:33 | Report Abuse

Or probably, make toll charges at RM1.00 on all highways. I think it's a populist move though.

Posted by Up_down > 2018-10-13 21:54 | Report Abuse

PH government cabinet team seems rather fresh. They don't know how to twist and turn the policies to please Rakyat and attracting FDI. They only know in reveal all the negative facts....spooking foreign investors. People also fed up with all the blames in previous government repeating again and again.

Posted by feimah > 2018-10-13 21:58 | Report Abuse

All blaming game should be stop after 100 days. No more excuse

Posted by Up_down > 2018-10-13 21:59 | Report Abuse

I believe most of the Bursa investors feel dizzy for what PH has done for the past 5 months. Foreign Funds keeps throwing their shares like no tomorrow.

Posted by feimah > 2018-10-13 22:00 | Report Abuse

LGE failed us

Posted by Up_down > 2018-10-13 22:03 | Report Abuse

How would you respond if you engage a new CEO to revamp the company and the CEO knows revealing negative facts and keep putting blame on former management team?

Posted by AlphaJuliet1708 > 2018-10-13 23:58 | Report Abuse

They made this CGT as a method to pay back the debt that they told, which is at a trillion ringgit. Some and even international creditors disagreed with that number. The country will have some revenue nonetheless. But they still suffered from the compensations that they created previously.

If only the previous government takes back the administration, then they will switch back the numbers. They'll show that the country has more money with even lesser debt to GDP ratio... thanks to the previous CGT.

Posted by EngineeringProfit > 2018-10-14 08:41 | Report Abuse

Bad idea.....myopic viewing through a tunnel vision

....the pie size has shrunk

if cannot enlarge it.....don't shrink it further

do no harm......common sense


(Do the first thing first...ENLARGE THE PIE SIZE...

......by the time klse index is as high as the USA.....then impose whatever tax)

Posted by kyosan > 2018-10-15 15:34 | Report Abuse

Posted by pussycats > Oct 10, 2018 05:38 PM | Report Abuse

///kyosan ///cgt on share...if it tax on amt profit (capital gain) then no problem loor... give money back loor to govt since other ppl has loss when you are gaining. ///

How govrment know who buy AirAsia at Rm3 and then sell AirAsia at 4 ringgit & tax 15% profit on that one ringgit...

another person buy AirAsia at Rm3 & sell at Rm3.50, then pay tax 15% on 50 cents profit...this method govrnment will not monitor...to time consuming for gov to do. Gov need to ask for your shares history record to tax you...bolehkah.... like Gst recordkeeping...u want kah?

Gov will tax 15% on those who sell AirAsia at Rm4. That is 15% tax on every AirAsia share sold at Rm4. This method Gov can manage to do lah.

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system can do it automatically if you want, wherever there's capital gain the system should be able to charge you on the spot. i believe programmer can do it.i just assume. peace~