This one expert level question, I don't know the answer at the back of my mind, my tax knowledge is >1 decade old. Ask la accounting questions and I shd be able to answer better

Still don't think Msia equities have much leg to run ya?
Thru KWSP not by MIS right? EPF returns don't necessarily directly correlate with the local equities returns

This is something I can't understand:-

My RHB Asian income is now at +4.35% bought somewhere in September 2016 which means it's around 8 months now.

However looking at the fund return page
https://www.fundsupermart.com.my/main/fundi...e-Fund-MYOSKAIF

It shows 6 months:- 6.54% 1year:- 12.1%

So why the discrepency? Am i missing something

Service charge and if you spread your entries at different time, it will be different costs.

that is the expected returns bro. doesn't mean that it will happen. check the ytd for past year performance and tally it with their expected returns

could be due to to "cut off" date prior publishing....
try use the fund return tool in FUNDS INFO

(have to minus the SC though)

Gain on disposal of UT from FSM is non taxable.
However, the dividend received is taxable.

distribution you mean?

i thought this "non taxable" applies to individuals investors....does this apply to company's money (not business related) too?

i think possible standard corporate tax rate applies..

This post has been edited by T231H: May 15 2017, 01:04 PM

yes

Do investors have to do anything ? Or it has already been deducted before the final figure is paid out or re-invested.

most investments in Malaysia are taxed first then distributed or reinvested. hence why are at single tier system

The above is not what I am thinking....

=======================

After thinking for a while and recollecting , this is what I am trying to elucidate :

For the sake of argument , Let us assume company XYZ Sdn Bhd has a MYR 1M facility with Bank ABC Bhd. The total annual interest paid to the bank by company is let's say MYR 100K . Normally the MYR 100K interest can be deemed as a legitimate company expenses and expensed out from company Profit & Loss statement , thus reducing chargeable income .

Now, let us assume Company XYZ Sdn Bhd participate MYR 300K in FSM unit trust , then the interest expense becomes 1 - (300 / 1000 ) x 100K = MYR 70K effective expense instead of MYR 100K. Thereby the expenses deductible becomes MYR 70K instead of MYR 100K , which means the chargeable income becomes more.

I recall that the rationale for such a calculation is that LHDN follows the principle of " wholly and solely for the production of the business income " to recognize any deductible expenses.

When one deviates from that principle , then LHDN can and will discount out by proportion the portion that is not deemed to be related to the core - business.

I hope I am right . I am not a tax agent , but having been part of company upper management for a long time , I am sensitive to such material fact .

Xuzen

p/s It is my own opinion that when one set up a business , stick to its core business , if you want to be an asset holding or investment company , set up a separate entity for tax efficiency .

This post has been edited by xuzen: May 15 2017, 02:30 PM

That is why you are my sifu


Xuzen's Fan

Yar yar.... through KWSP proper and not through KWSP - MIS .

Bolehland is rated three stars by FSM research team . China and HK are both five stars . I am in no hurry to come back to Bolehland just yet as I already have a large chunk of my asset parked in Bolehland through KWSP . Even not highly correlated also " boh chap " , I go cari - makan in negeri Tiong Hua first.

Xuzen

This post has been edited by xuzen: May 15 2017, 02:46 PM

I thought you have already completely moved out from china funds already ? You're planning to move in there again ?

This post has been edited by puchongite: May 15 2017, 02:54 PM

Hey everyone, I just started looking into my investment options online, mainly going through a bank vs going through something like FSM. Am I correct with the following calculations?

Situation is I have RM10,000 that I want to invest in the CIMB-Principal Equity Growth & Income Fund. Based on the CIMB website, there is a 6.5% application fee. While on FSM there is a 1.75% initial sales charge. Does this mean that:

Investing through CIMB
RM10,000 - 6.5% fee = RM9,350 initial investment

Investing through FSM
RM10,000 - 1.75% fee = RM9,825 initial investment

Is this correct? That's a huge difference! Any help appreciated.

now why would you calculate like that?

10,000x6.5%= 650

10,000x1.75%=175

that 650 better come with a hot bank chic.

Yup
Fund info form Sept 2016 to May 2017 only showed 5.3%

Another quick question, are you able to transfer holdings from beneficiary to main account and vice versa. One of my wife's company benefit is 1.5% charge for FSM. Will I be able to purchase through her and transfer to my account?

ya it applies to company also..gain on sale of UT auditor said is classified under "capital gain"..so its non taxable..regardless whether is it business related..