Question

Question>>>

Azizi Grocery Sdn Bhd operates three mini-markets in Kuala Lumpur, Klang and Petaling Jaya.
The company invests surplus funds in the stock market. In 2018, the company bought and sold
shares on two occasions and made a gain of RM500,000. This gain was reflected as an
extraordinary gain in the audited accounts of the company.
Would this extraordinary gain be taxable on the company? Support your answer with the relevant
badges of trade.

Answer 1

As per Malaysia tax Regime, unless the seller in the business of dealing of share, the profits on sale of shares are not subject to income tax as such profits are considered as capital in nature. Malaysia does not have capital gain tax regime.

In the current case, as suggested by name seller has grocery business and invested surplus funds in stock market stated that Azizi grocery does not have any business of dealing in Shares. Hence above profit of RM500,000 will not be taxable.

answered by: anonymous