There are supposed to be two things which we cannot escape from, someone prominent said. First one is death and second one is tax. Haha.
By the way, this is something that many have been asking for some time. It was even speculated for Budget 2019 but alas, it was just rumour. Many were happy. We are talking about inheritance tax. I can see the face of my good friend in Penang frowning every time this topic crops up.
He has some special circumstances and if there’s inheritance tax, it will affect him a lot. Well, if this comes about, there will be lots of consultative business for good tax consultants in the market.
Running away from it will not be possible but minimising the effects will definitely be something worthwhile to do, for the super wealthy. For the rest of the working professionals, read on.
Rumours about inheritance tax…
Article in edgeprop.my here. It has been a persistent rumours about the intention of the government to introduce inheritance tax.
This is what our Finance Minister has to say. “It is unlikely. If there are, it is just a follow up of what we have announced in 2019 Budget.”
The reason for the fear is that the market feel it will discourage investors’ interest, especially on Bursa Malaysia.
There was however the proposal to increase tax revenue via the voluntary declaration of any unreported income including income kept in offshore accounts. Article in edgeprop.my here.
Clues from tax collection 2019
Perhaps we should look at the tax collection for 2019 for some clues as to what could happen. By the way, our Finance Minister also did not say that inheritance tax will not be introduced forever.
Personally, I think as long as tax collections remain healthy and the government feels that no new tax is needed to cover shortfalls, I do not think the inheritance tax will be introduced. It is really going to be an unpopular move and bound to be criticised by many Malaysians.
By the way, inheritance tax if introduced will affect all assets ownership and not just properties yeah. This is why there is the fear that people will just stop investing since whatever returns will still be taxed in the future when they transfer the property to their children.
By the way, the UK has inheritance tax. Singapore does not, since 2008. Australia does NOT have inheritance tax as well. Happy understanding.
Next suggested article: Taxes, government and economic growth