Wednesday, 13 April 2011

Guan Eng say 15% flat tax rate should extend to locals, I agree wholeheartedly

Prime Minister DS Najib announced yesterday a very generous offer to Malaysians who worked outside this country to tempt them to come and work in Malaysia. An offer which really make a lot of Local Professionals including yours truly who have worked more than 25 years in this country paying taxes as any LOYAL citizens of Malaysia really wonder what this Government is up to. The story here:

Najib proposes flat 15pc income tax to lure back talent

I am no supporter of DAP's Lim Guan Eng, but his statement here makes sense:

Extend 15pc flat tax to locals, says Guan Eng
By Yow Hong Chieh April 13, 2011

Lim: Isn’t it better to work overseas since the Malaysian government would treat you better than when you are working in Malaysia?

KUALA LUMPUR, April 13 — The 15 per cent flat income tax offered to Malaysian professionals working abroad is discriminatory and should be extended to local-based Malaysians, Lim Guan Eng has said.
The Penang chief minister said giving Malaysians overseas incentives to lure them back may actually backfire and encourage more professionals here to leave.

“Isn’t it better to work overseas since the Malaysian government would treat you better than when you are working in Malaysia? One can then return back to enjoy the 15 per cent income tax benefit,” he said in a statement today. 

Read more here.

This time I must say that I wholeheartedly agree with Guan Eng. 

I, like many other citizens of Malaysia have been dilligently paying taxes to Lembaga Hasil Dalam Negeri equivalent to at least 1 month of our salary for at least the last 15 years and like many Local Professionals have helped in no small ways to build this great nation of ours and thus we deserve a break from the Government too. 

Why give generous tax breaks to people who don't bother to help build Malaysia when we needed them, why not help us Locals some of them are great BN supporters, the BN Government should not alienate their voters, agree DS Prime Minister?


Anonymous said...

this 15% flat tax rate is a scam. If you net income is less than RM100K, pay per existing tax schedule is more worth than the flat rate.
15% * 100K = 15,000
Tax schedule per 100K = 14,325

Anonymous said...

I think 15% flat tax won't lure professional to come back to Malaysia.It's only for 5 years.After 5 years then what?Leave the country again for greener pastures.Those working in middle east are virtually tax free...What's the point of coming back.Nothing spectacular.After 5 there is no guarrantee that you will still get back the job.Afterall we are doing fine with a future career path for us....Why rock the boat for 5 years of 15% tax....It's a waste of time an effort.

Anonymous said...

The Najib's government should think of ways to plug the holes to the brain-drain. Think how to keep people and take care of people who stay back to serve and to contribute to the country! Rather than give goodies again to those have left. (or may be just a small goodies to show that this government does something?)

Anonymous said...

I think 15% flat tax rate is not interesting enough. people might just consider if it would be 15% cap-rate (meaning still following the bracket accordingly, but cap at 15% instead of say 26% now?)
Overall, it would perhaps help more if Malaysia could follow Singapore income tax rate - as I would say most of our talent are flowing there.