A review of the second edition of this popular book which sets out to arm property investors with new tax-saving ideas

The returns from property investment can certainly be maximised where a potential earning leakage in the form of tax is effectively handled. For the astute investor who has recognised this fact, the publication of the new second edition of 100 Ways to Save Tax in Malaysia for Property Investors by popular tax author, Richard Thornton, is certainly to be welcomed. Some four years after the initial publication of this book, the time is ripe for an update to arm property investors with new tax-saving ideas.

The book is prepared in very simple and engaging language. It makes taxation so simple and manageable and is sure to change the perception held by many about taxation. Complementing the clear text are useful and instructive examples which help to enhance the understanding of the various taxation principles and rules as well as tax mitigation ideas. To ensure that readers do not miss any keys points “Simple Planning Ideas” are highlighted in most chapters.

Comprehensive Guide

100 Ways to Save Tax in Malaysia for Property Investors is a comprehensive guide to the tax implications of property investment. As a work that collects together in one source all of the tax issues relevant to property investment, it is an invaluable tool to help investors in their vital decision-making processes. It is a companion work to 100 Ways to Save Tax in Malaysia for Individuals and 100 Ways to Save Tax in Malaysia for Small Businesses by the same acclaimed tax author. The book covers the specifics of the taxation of property income, which is in many ways distinct from the taxation of other kinds of income. The availability of deductions against rental income is discussed with clear examples. In addition to dealing with the taxation of property income, the book covers other areas of taxation including investment holding companies, real estate investment trusts and assessment tax which have relevance for the property investor. Tax-saving strategies which include tax deferment, tax reduction and elimination of tax liability are explored with practical illustrations. The chapter on this provides examples which are really useful to help property investors appreciate the actual possibilities that lie behind proper tax planning.

Mitigating RPGT

Besides a wealth of tax-saving ideas for long term investors, the book also has useful tips for people seeking to exploit the property market by realising short term gains and some useful strategies for mitigating real property gains tax. The revised and expanded chapter on RPGT also includes the calculation of the tax, family gifts and the potential trap, computations through the exempt period, the 2% withholding tax and the new loss relief. With RPGT very much in the mind of investors again, this more detailed coverage of the topic should be most welcomed.

For the unwary investor who might otherwise stray over the line by dealing with properties in such a way that a profit on sale becomes liable to income tax, useful guidelines and examples are provided. Stamp duty which is a significant cost for property investors is also covered by the book including the implementation of advance stamp duty. A new chapter on assessment tax highlights the impact of rates charged by local authorities which are often overlooked as a form of tax by property investors.

For the easy reference of readers, appendices to the book provide the applicable tax rates, relevant Inland Revenue Board Public Rulings as well as the meaning of certain important expressions. 

Whether you are a new property investor or an experienced one, a Malaysian or a foreign investor, an individual or a corporate investor, this book contains a wealth of ideas to help you to minimise the taxes you have to pay and to plan your future actions so as to pay as little tax as possible. This book aims to make the understanding of tax issues affecting property investment easy by using simple everyday language and practical examples to illustrate them. It is certainly a book not to be missed by property investors, tax consultants, real estate consultants, estate agents, lawyers, landlords and anyone with an interest in property income.

It is understood that this book will hit the bookstores in early February 2011. Grab it when it is available. It is worth every bit of the RM60 that it costs. For further information, contact the publishers Sweet & Maxwell Asia at (T) 603-56330622, (F) 603-56330657, or visit its website www.sweetandmaxwellasia.com.my.

Richard Thornton is author of 100 Ways to Save Tax in Malaysia for Property Investors (ISBN978-983-2631-83-5) and 100 Ways to Save Tax for Malaysian Investors (ISBN978-967-5040-42-9) published by Sweet & Maxwell Asia. See http://malaysiaauthorindex.com/wiki/Richard Thornton. He is also a Fellow of the Chartered Tax Institute of Malaysia.

The two works referred to immediately above contain some valuable insights on how to achieve legitimate tax savings for investors in property and other assets as well as dealing with complex issues such as “When can an investor be taxed as a dealer?” and “Is it a good idea to use a company?” Written in clear simple language, the books contain helpful examples to explain how the tax planning ideas can be put into action. They can be obtained from most book stores, or from the author at ricton100@gmail.com