LiewCF.com

liewcf, you miss 1 ... min brokerage fee change from rm12 to rm40
and do u interest to read klse.8k ebook?
if yes, please email to me.
Thanks you.

LOL at the expensive racquet. Can use to beat mosquito when you are blogging mah.

Any blogging course for you? Are you sure you need that?

u still kena study???
no need ma....
coz MALAYSIA BOLEH!!!!MALAYSIA BULLEH???

anyway,JUZT DO IT!haha

hey, have you done any research on paying income tax as a blogger? or all revenue from the net is tax free? I think that would be an interesting article to write about.

Anyway, if you don't pay income tax or have a job, a 9-5 job, would the bank lent you money to buy a house?

@aHfUi: thanks for the info.

@planet malaysia & musica0911: just kidding, i might as well teach ppl how to blog :P so far, I didn't aware of any blogging course in college.

@Gecko: I paid income tax for 2006 as a blogger (self-employed). Revenue from net is NOT tax free, as long as you are living in Malaysia. Since I have an income tax record now, I should not have problem to borrow money to buy a house. Plus, I have beautiful bank account statements. :)

oh wow, but I hate the idea of paying income tax, political issue - you know how our government spend the money on white elephant projects.

I wonder, how many percent is that? I mean how many percent do they tax you?

Do you think it is better to register a company and declare those earning as company profit? because if you're getting a house or car, usually they tax you after you spend the money (installment) unlike personal income tax which is the other way round.

From the budget statement "Commission rates for internet trading and cash upfront transactions will be fully negotiable. This measure will further reduce the cost of transactions. In addition, clearing fees will be reduced from 0.04% to 0.03%, with a maximum fee of RM1,000. The minimum brokering charge per transaction is fixed at RM40."

A maximum fee of RM1,000 is nonsense. If you bought RM3,000,000 (three millions) value of shares, please still pay your RM900 clearing fees (the 0.03%).

0.04% to 0.03% mean almost nothing to retail investors. How much different if you buy RM20k of shares? It is just RM2 different. Scratch your head right? What for?

Charge per transaction fixed at RM40 is really bad. For example, you purchase RM2000 value of shares, you have to pay RM40 which is equal to 2%. Think about buy and sell, immediate lost of 4%. If you trade 10 times in a year, the commissions eat up 40% from your investing capital. Warren Buffett is making 28% average in annual compound return. You have to be two/three times smarter then Buffett in order to survive. Can you?

We have no choice, in order to truly enjoy the 0.42% internet transaction commission charge, we have to buy RM9523 shares and pay the RM40 (the 0.42% which is negotiable). Secondly, don’t trade 10 times in a year but buy and hold or sell after few years. Again, can you?

Why board lot change from 1000 shares/lot to 100 shares/lot earlier? It simply tricked you to pump more money into share markets and suffered the minimum RM40 charge soon.

Be smart and be careful! Correct me if I am wrong and what do you think?

@Lim: Thank you, I got your point. In my opinion, the purpose of the RM40 per transaction is to discourage people active in the share market and encourage a longer term of share investment. The tax free share dividend is another reason for holding the shares. I read it somewhere that Warren Buffett strategy is long term too.

RM40 per transaction will be hitting hard on small-time investors like me. I foresee my net income on my personal investment will be tremendously reduced.

Seem like no goodies for IT sector or bloggers.

The RM5000 claim on Postgraduate studies is a fantastic news for me but need to check whether it is applicable for this year income tax submission or next year since I'm hopefully to complete my studies by end of next year.

@Lim: i totally agree with you. Those big fishes wont be affected but the smaller fish will surely be stung badly. In other words, we cant be that active in the stocks. Only can hold and hold and hold. I guess somebody is trying to make a lot of money from all the smaller fishes but still protecting the bigger ones. Darn!!!

but the racquet must be less than 150 liew! :D

is it true that malays don't need to pay income tax but zakat? what is the difference?

@Calvin: I think zakat is treated same as donation, which can be deducted from income tax.

The RM5000 relief for Postgraduate studies is applicable w.e.f YA2008, prior to this, there is also a relief of RM5000 given for personal studies but only on certain professional course.

The free tax dividend is a trap to the low income group, where the dividend we receipts is actually at net of tax on the company tax which is 26% in YA2008. It is a loss for tax payer who have lower income which is tax at a lower rate. Before this, we will get the refund on the different tax rate.

Malays also have to pay income tax, as long as they are taxable. Zakat can be claim as rebate on tax payable

Well, if you are tax at 5% and you purposely spend RM300 in sports equipment just to get the tax relief, you only save RM15 (RM300*5%) of tax and on another hand you wasted your RM300 and end up you loss RM285. On another hand, even if you do spend money in sports equipment and tax at max on 28%, you only save RM84. This is not much rite? :)

@顽皮宝宝: thanks for explainations as a accountant :)

I think the budget 2008 benefit the governmnet servants the most, we should call it Government Servant Budget 2008.

Bursa casino + broking firms + markets big shark team up to raise min brokerake from rm 12 to 40 , why ?? to earn extra money for sure , besides that to reduce small retailers nimbleness in share trading, as nimbleness is crucial in winning and if u trade without this, you will lose to them (chong kah) and hehe, this measures is very poisonous, as malaysia govt usual tactics, give u 10Cent and rob yr RM 100, i read paper all mentioned that it could spur small investors interest in the market - think all must be idiots or conmen's talk, where got small investors want to buy if commision raise from rm 12 to rm40?? this is a trick for u to buy more at one go and the taboo in KLSE game is u cant buy bulk in one go unless when public bank is traded at RM 60C ( Like those in 97 crisis), so i wonder if raising min fee per transaction could boost trading interest, why not set it at RM 400 9min) per trade, hehe! fellow small fishes, beaware!! this is very racun tricks manouvred by group of crocodiles involved in stocks market, so, from conversations with veteran investors across malaysia, the common opinion is : suck blood measures, KLSE cannot play anymore. eventual winners will be broking firms and crocodiles, like call-warrents issued by cimb and osk, they just issue and pls read the trend within 6 months, all typical going downhill , chongkah sell from IPO until last trading day. this is call rule of the game and rule has become more and more dirty.

Individual does not need to pay tax for share dividend received ?
This is math game only =__="
Please refer to the example of this forum ...
http://www.lcmart.com/community/viewthread.php?...

Some related discussion here
http://www.investlah.com/forum/index.php?topic=...

LiewCF & Mr Lim, I have attached a small portion of comment #8 into the forum. Please advise me if any of you guys doesn't agree with that so I could remove it.

Glad if you guys could participate in the discussion.

Dear LiewCF,

Your statement ..."individual does not need to pay tax for share dividend received" is a reflection of yr misderstanding of the one tier tax system that to be introduced in 2008 budget. As a result, leading you to claim that you might invest more in share ! What quite a misleading statement was to other bolggers !

Let me try to putting in the right persepective. Before the new "one tier taxation", basically, any company having intention to flank out dividend for shareholder must be carried free balance in the section 108 account.
Free there, the company will be paying 27% tax on behalf of shareholder (in this year) to the inland revenue.

The lower income group can claim back the tax from the inland revenue (let say A is in the tax bracket of 10%, he/she is entitle to claim back the balance 17% from the inland revenue). as long as they are in the tax bracket lower than 27% category. And vice versa for the higher income group (need to pay another 1 % to the inland revenue if he is in the 28% tax bracket).

With the one tie new system (budget 2008), the section 108 account will be abolished (not later than 2013 , giving 6 years to be implemented ) The inland revenue will tax the company directly for the any dividend declared. Thus, all dividend declared will be considered as nett. No further tax can be reclaimed back for the lower income group as mentioned above.

As for the company.....there is no much different (they can only declare dividend if have free cash) with one exception that the surplus fund (if any)that utilized for investment for capital gain can be exempted from the computation of income tax.

Hopes you can be more careful in yr statement especially pertaining to issues that inherent with some technicalities/complexities.

@Datuk Panglima: thank you for the detail explanation. I am a totally newbie about stock market. The post was my 2 cents after reading the highlights.

Wow... I didn't know that "The minimum brokering charge per transaction is fixed at RM40" actually charging us more. Oh... No more intra-day trading with less than RM10,000 trade. :P

Hi guys,

I heard that those in consultancy, need to charge 5% service tax on their clients?
Is that truth in our budget 2008?

Thanks.

nice info.. thank for that