L12-_Unit_trust_REIT.ppt - UNIT TRUST INTRODUCTION • Unit...

UNIT TRUST INTRODUCTION
•
Unit trust is created by a trust deed entered into between a
management company and a custodian trustee to be held on
behalf of the investors, who are known as unit holders
•
Management company is the company that establish the fund
•
Trustee acts as a custodian of these asset and is responsible to
protect the interest of the unit holder
•
Unit trust is a trust where the beneficiaries’ interest in the trust
assets are represented by units
•
Unit trust mainly invest in stocks or shares in KL stock exchange
and Government bonds
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TRUSTEE
INVESTORS
Trust
deed
Issues unit
trust
Manages
assets
SERVICE
R
INVESTS
UNIT TRUST
MANAGEMENT
CO
UNIT HOLDERS
Funds

Common UT Income
1. Gains from realisation of investments: Exempted
2. Interest: mostly exempted
3. Dividends : 1 tier - exempted
4. Rental-MSI taxable
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Exempt Income of UT

FSI

Interest income from:

Securities or bond issued by the G’ovt

Debenture other than convertible loan stock, approvd by SC

Bon Simpanan Malaysia
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Licensed financial institution or Islamic bank 1983.
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Any savings certificates issued by the G’ovt [para 19 Sch 6]
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Islamic securities (including sukuks) originating from
M’sia, other than convertible loan stock, and approved by the SC or
Labuan Financial Services Authority [subp 33B Sch 6],
•
Dividends distributed out of these exempt UT income is exempted in
the hands of unit holders.
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3. CA for Rental Income
s 63A
1. Rental Income is taxed when due or paid in advanced
2. CA is permitted. Eg. CA for lifts, escalators, air-conditioning,
fire fighting equipments
4. Rate of CA is a flat 10% of QPE.
5. Excess CA for a YA would be disregarded.
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QUALIFYING CAPITAL
EXPENDITURE
•
Refers to plant and machinery used for the purpose of renting out
properties.
•
Expenditure incurred in the alteration of an existing building for the
purpose of installing that machinery or plant and other incidental
expenditure provided that such expenditure does not exceed 75% of
the aggregate expenditure
•
Expenditure incurred in preparing or levelling land in order to prepare a
site for the installation of that machinery provided that such
expenditure does not exceed 10% of the aggregate expenditure
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RM
•
Lifts 2,000
•
Escalators 3,000
•
Air-conditioning 2,000
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Fire fighting equipments 3,000
CA = 10% x 10,000 = 1,000.

PERMITTED EXPENSES
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Normal deduction: S33(1) expenses
•
s63B :
Fraction of Permitted expenses deductible.