Taxes

Share to Twitter Share to Linkedin Topline London stocks and the British pound both fell Wednesday morning—after the International Monetary Fund (IMF) and credit ratings agency Moody’s rebuked the U.K. government over planned tax cuts that they say could worsen inequality and hamper the nation’s economic growth—reversing some of its recovery after the currency sank to a historic low earlier this week. Key Facts The pound fell against the dollar on Wednesday, dropping back below $1.07, poor by historic terms but well above the record low of $1.035 it sank to Monday after treasury chief Kwasi Kwarteng announced plans last week to borrow billions in order to scrap the highest rate of income tax and support households with rising energy costs. The FTSE 100 , an index made up of shares of the 100 biggest U.K.-listed companies, fell as much as 2% during trading on Wednesday morning. The IMF, an international organization with 190 member … [Read more...] about Pound Sinks Again As IMF And Moody’s Rebuke U.K. Tax Cuts

- A + A PUTRAJAYA (Sept 27): The Inland Revenue Board of Malaysia (IRB) said on Tuesday (Sept 27) that effective Aug 1, 2022, recurrent small-value withholding tax (WHT) payment for royalty, interest and special classes of income earned by a non-resident can be made biyearly instead of monthly. The statement added that the provision comes under Sections 109 and 109B of the Income Tax Act 1967. The IRB said that WHT payment not exceeding RM500 per transaction is eligible for the benefit, and that “the payer needs to know that WHT will be paid more than once during the six-month deadline extension”. The IRB said the pay-as-you-earn tax can be submitted with the CP37 or CP37D form on or before June 30 for payment to a non-resident between Dec 1 and May 31, or on or before Dec 31 for payment between June 1 and Nov 30 during the year. The payer must state the filing date in the form and keep a record of the payees for reference by the IRB if necessary. For more … [Read more...] about IRB allows deferment of small-value withholding tax payment

Share to Twitter Share to Linkedin Topline The British pound slumped to an all-time low against the U.S. dollar early Monday morning as markets reacted negatively to the new government’s signals that it will pursue more aggressive tax cuts, while it also attempts to subsidize spiraling energy costs for households and businesses. Key Facts The pound dropped slightly below $1.035—the lowest it has been since the British currency switched to decimal units in 1971—as Asian markets opened on Monday morning. The currency has since recovered slightly and was trading just above $1.067 at 8 a.m. BST, according to foreign exchange tracker XE. The British currency also slumped more than 3.7% against the Euro, dropping below €1.08 before recovering to €1.10. According to Bloomberg, there is now a 26% chance of the volatile pound hitting parity with the U.S. dollar in the next six months. After hitting a 20-year-high last month, the U.S. … [Read more...] about Pound Plummets To Record Low Against U.S. Dollar After U.K. Signals More Tax Cuts

- A + A KUALA LUMPUR (Sept 27): The upcoming Budget 2023, to be tabled in Parliament next Friday (Oct 7), is unlikely to introduce major tax policy reforms in view of the need to manage inflation, according to economists. “The government’s focus currently isn’t on fiscal consolidation or the medium-term fiscal framework,” said RHB Research chief economist Sailesh K Jha in a note on Tuesday (Sept 27). “Tax reforms could be delayed further. In our view, major changes in corporate, personal income, and capital gains taxes are unlikely. Changes to capital gains tax for the property sector, as well as inheritance tax announcement is not expected by us as well,” he said. Although the Goods and Services Tax (GST) is not expected to be re-introduced next year, Maybank Investment Bank Bhd (Maybank IB) foresees the government to begin conveying a message for the needs for such a broad-based tax, going forward in 2024. “We do not expect GST to be re-implemented in 2023, in … [Read more...] about Budget 2023 unlikely to introduce major tax policy reforms, economists say

- A + A SYDNEY (Sept 28): Global ratings agency Moody's has warned the British government that plans for unfunded tax cuts could lead to larger budget deficits and higher interest rates, threatening the country's credibility with investors. In a blunt release the agency said large unfunded tax cuts were "credit negative", leading to structurally higher deficits amid rising borrowing costs, a weaker growth outlook and acute public spending pressure. "A sustained confidence shock arising from market concerns over the credibility of the government's fiscal strategy that resulted in structurally higher funding costs could more permanently weaken the UK's debt affordability," Moody's said. Debt-funded fiscal stimulus would only add to already sky-high inflation, particularly if sterling remained near record lows, and could prompt a more aggressive tightening cycle from the Bank of England, the agency said. The pound tumbled to an all-time low of US$1.0327 on Monday … [Read more...] about Moody’s warns UK unfunded tax cuts are ‘credit negative’

With over 45 million student loan borrowers collectively owing $1.6 trillion, it's easy to see why funding a higher eduction has become a lifelong burden for so many people. It no doubt came as a relief to many of these borrowers when, on Aug. 24, 2022, President Biden announced a three-part student loan forgiveness plan to eliminate student loan debt, lower monthly payments, and make college more affordable. Yet opponents of Biden's plan were quick to question its legality, and a protracted legal battle seems all but certain. Whether the administration's debt cancelation policy would survive in court, however, isn't as clear. Here's what to know. Key Takeaways The Biden Administration plans to provide up to $10,000 in federal student loan forgiveness for eligible borrowers, with an additional $10,000 for Pell Grant recipients. Biden's plan has been subject to a myriad of criticism, with the question of its legality having been raised by critics across the political … [Read more...] about The Legality of Biden’s Student Loan Forgiveness Plan

- A + A KUALA LUMPUR (Sept 27): The Malaysian ringgit has slid further to 4.6112 against the US dollar on Tuesday (Sept 27), as it registered its fourth consecutive day of decline, tracking losses among major currencies against the greenback. At 6pm, the local currency depreciated to 4.6112 against the greenback, from Monday’s close of 4.6038. Meanwhile, the ringgit traded mixed against a basket of other currencies. It appreciated vis-a-vis the euro to 4.4309, from Monday’s 4.4401. However, the local note weakened against the Japanese yen to 3.1935 from Monday’s 3.1809, the Singapore dollar to 3.212 from 3.2092 at Monday’s close, and weakened against the British pound to 4.9818 compared to 4.9481 on Monday. The onslaught by the US dollar on global currencies extended last week after the US Federal Reserve (US Fed) raised its interest rates by 75 basis points (bps) for the third consecutive time to a range of 3% to 3.25% — the highest level since 2008 — to … [Read more...] about Ringgit down for fourth day, tracking US dollar pressure on global currencies

- A + A (Sept 27): Deutsche Bank AG’s chief economist said he expects the UK to enter a “deep and long” recession, as the Bank of England (BOE) plays catch up to control inflation. “We’re thinking in terms of a recession that will be deep and long,” David Folkerts-Landau said in a Bloomberg Television interview. “That’s the price we have to pay for financial stability and getting on the right track.” Folkerts-Landau said the BOE is two to three percentage points behind where it should be, and it would be a “little risky” to wait until the next scheduled meeting in November to make a move. Still, he said he thinks it’s more likely that the pound will climb back to US$1.15 than hit parity. “The BOE has been late in raising rates and in too small amounts,” Folkerts-Landau said. “Rates have to go up significantly.” Folkerts-Landau said he applauded the “conviction” of the UK government’s moves and thinks tax cuts are necessary, but he questioned the timing. … [Read more...] about Deutsche Bank’s chief economist sees ‘painful’ UK recession

- A + A (Sept 27): China's shaky recovery continued in September, with a pickup in car and homes sales in the biggest cities compensating for weaker global demand and falling business confidence. That is the outlook based on Bloomberg 's aggregate index of eight early indicators for this month. The overall gauge was at five, unchanged from August, signalling that the economic rebound maintained momentum. Overall, China's economy picked up in the third quarter from the near contraction in the April-June period, but that rebound was undermined by Covid-19 lockdowns and outbreaks in cities across the country, the continued housing slump, and weakening export demand. A global economy slowing due to the Russia-Ukraine war, rapid interest rate hikes, higher inflation, and currency market volatility will only worsen the downward pressures. Small businesses confidence fell again in September, with both performance and the outlook declining at over 500 companies … [Read more...] about China’s economic recovery faces fresh risks from global slowdown

- A + A KUALA LUMPUR (Sept 27): LB Aluminium Bhd’s net profit for the first quarter ended July 31, 2022 (1QFY23) surged 311% to RM12.51 million from RM3.04 million in the same quarter last year, mainly due to better performance in its aluminium segment. Profit before tax for the aluminium segment soared 626.3% to RM15.04 million from RM2.07 million in 1QFY22, mainly due to higher revenue, coupled with better margins, the group said in a bourse filing on Tuesday (Sept 27). Revenue for the quarter under review also jumped 98.23% to RM227.06 million from RM114.54 million previously, due to improvements in both the aluminium and property segments. Its aluminium segment recorded higher revenue of RM210.09 million compared with RM114.54 million in 1QFY22, due to higher sales volume and selling prices. “The group’s property segment started to recognise revenue from its Satu Anggota Satu Rumah (SASaR) project in Bandar Tasik Selatan. Since its launching in May 2022, the … [Read more...] about Higher revenue, better margins lift LB Aluminium’s 1Q net profit by 311%