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 investment return taxable?

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cherroy
post Oct 23 2017, 04:41 PM

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Generally, investment return is treated as capital gain, and capital gain is not taxable.

But if a person use the investment tool to trade upon to make a living, eg. a broker trade stock in the market to make a living, then it is considered trading profit, and trading profit is taxable.

Imputation dividend (tax credit system) already became a history.
From 2014 onwards, all dividends are single tier (aka tax exemption in the hand of shareholders) as it is already taxed at company level.
cherroy
post Oct 24 2017, 09:52 AM

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QUOTE(klthor @ Oct 24 2017, 09:29 AM)
i think i can start a class in lowyat forum to teach you all about badges of trade.

key word is badges of trade.

let me question all those people who said capital gain without looking into badges of trade.

money changer, they 'invest' in foreign currency, then sell it to you and make a profit out of it. they do it 24/7, so its capital gain or is it business gain? how do you determine ?

there are rules defining what is capital gain and what is not, dont see the word forex trading, share trading, investment = capital gain in nature....
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You already gave the early hint/answer... biggrin.gif

Trading is definitely taxable.

Money changer is trading currency by offering money exchange service, their business is not investing.
So their profit is taxable.

Flipping property actually may be seen as a form of trading as well.
That's why those flip or trade excessive number of property, those profit made may be seen as "trading profit".

If the property trade is treated as trading profit, then RPGT is not applicable.

This post has been edited by cherroy: Oct 24 2017, 09:56 AM
cherroy
post Oct 24 2017, 05:11 PM

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QUOTE(trumpkampung @ Oct 24 2017, 03:07 PM)
so if my wife not working and use my money and generate income from stocks, she has to pay tax?  confused.gif  Then i cannot claim the rm3k wife relief?
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It depends on your wife whether she is trading the stock typically like constantly with high volume daily/monthly or in other word, trading stock is becoming like her job, or just buy and hold type for investment.

3K relief is for wife not working, if she works as stock trader, then clearly it will be not entitled to claim the relief.

Whilst dividend from stocks is single tier which is tax exempted.

You need to distinguish the difference in term of the income definition.
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