Dec 22 2010, 02:25 PM
QUOTE(zenwell @ Dec 20 2010, 06:01 PM)
I've seen many contest that offers cars and even house as the grand prize and ppl actually won it. My question is do they need to pay tax on the prize?
Say a person win a car worth rm100k, does the person get taxed according to the value of the car?
How about if the person sold off the car and take the money, will it be taxed?
Income Tax taxes on income. Say a person win a car worth rm100k, does the person get taxed according to the value of the car?
How about if the person sold off the car and take the money, will it be taxed?
To qualify as income the receivables must satisfy two conditions: It must be a periodic/regular, it must come in from a defined source.
Your above scenario of receivables does not satisfy the first condition, hence it is not defined as income.
Not taxable.
Xuzen
Added on December 22, 2010, 2:28 pm
QUOTE(zenwell @ Dec 22 2010, 02:18 PM)
Actually for companies like Shell & Petronas, do frequently giv out cash prizes, bside attracting more ppl, do they get larger tax cut or something like that?
If the function of giving out prices is to obtain more business, then the taxpaying company can claim as expenses. Xuzen
This post has been edited by xuzen: Dec 22 2010, 02:28 PM
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