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Questions: 1.Is there any tax liability for the Conversion gain for the exchange of land with 8 units for the joint venter in which the market price is approximately RM 2.6 million and the cost of the land is approximately RM 600,000? 2.If a is taxable what is the Cost of land because the Purchase price is unknown, could we use the amount shown in the valuers report. 3.If the land owner disposed of the land any tax liabity will be incurred. 4.Discuss Stamp Duty and real property during transfer, disposal and Acquisition of property. 5.What tax is set for capital gains from Real Estate Sales? Answers: 1.Imposition of capital conversion gains In the case of resident, capital conversion gains are treated as ordinary business income and taxed at standard corporate tax rates. In the case of non-resident companies, capital gains of Malaysian origin are taxed at 11% of turnover or 22% of profits, from the lower value (Cameron, Manning, 2012). Deductions and tax credits A deduction on dividends received is applied to dividends transferred between resident companies. There are numerous tax incentives for qualified activities that comply with the tax incentive legislation, including investments, R D and high technology companies with foreign capital. Other corporate taxes A capital registration tax of 0.48% (or 1.44% in the Malaysian metropolitan area) is collected. A tax is levied on real estate from 0.24% to 0.6% on land and buildings.In this case Mr. Lau and Mr. Yong will be taxed at corporation tax on the a third land that they own. The purchase cost of year 2003, at RM 210,000 will be will be liable for taxation. On the other hand, the late Mr. Ngu who is deceased will have his estate not liable for taxation as the value of the land is not known and the person is deceased (Development land tax, 2007). 2.After the valuation of the land at initial cost, the land is RM 600,000. This is taxable initially. After the joint venture taxation is made differently where the joint ventures are taxed individually depending on their joint venture agreement. Mr. Lau and Mr. Yong will both be taxed a third of their income from the units they have made. As per the agreement, Mr.Ngu estate will go to the nest of keen probably his wife and will be taxed on income received from his part of the income from the 26 housing units. After conversion of the land, the tax liability can be based on the value determined by the values (Spencer, 2016). 3.This year, a new system of calculating the territorial tax was also introduced, although always maintaining the two essential variables: the value of the land and the estimate of the price of construction. Up to the hour houses and commercial establishments received similar treatment. After disposal, you will know the new values. In The year of disposal the property valuation - factor that weighs on the contributions. In his view, the value of land in the capital has increased by an average of 25%. "But one thing is the revaluation and the other contributions: many properties will not change, because they are new constructions (Engdahl, 2011). Taxing liability: From the following taxing year (usually the same as the calendar year, so from January 1st) after the trading has taken place. Cadastral liability: From the following property tax census after the date of the request, regardless of when the transfer took place. Deadline to resolve the request: 6 months Outcome in case of expired deadline: rejection of the requestIt is considered a real estate all floor, local, parking space, storage room, etc.. What changes were approved in the payment of VAT on housing? No state subsidized housing will have VAT. The subsidy is maintained at 85% of the lowest priced homes sold. 4.The stamp and stamp tax paid on mortgage lending operations will maintain its rate of 0.2% for all DFL 2 home sales. In the case of real estate other than, the tax increases from 0,4% to 0,8% of the value of the sale. The double increase in stamp and stamp tax rates will not apply in the case of property loans for the acquisition of housing. In other words, the rate of 0.2% that affects them is maintained in those cases. When the person owns a property and acquires another, he will pay VAT for the second purchase only if he is engaged in the real estate business. During acquisition the stamp duty is transferred to the acquirer of the value at the original or initial cost of the property (M cNaught, 2007). 5.Real estate acquired after 2004 will generate, as from January 1, 2017, the payment of taxes only if the taxpayer has a gain throughout his life, regardless of the number of properties he sells. This means that the difference between the values at which you purchased the property (s) and the value at which the property (s) sold must be greater than. Since the year 2016, the usual sale of real estate, except land, is subject to VAT (Real Property Gains Tax Act, n.d.). This rule applies in principle to those who engage in the business of selling real estate. However, it should be kept in mind that the modifications include a presumption of habitually in cases where the sale takes place before the year of having acquired or finished building a property. Tax consequence of disposal of a deceased property On the subject of death there have been many opinions in the world and in history, it is a matter of inspiration not only for poets and writers but also for film directors who deal with it. Death in many cases allows families to join or also to separate, can give rise to mixed feelings. In short, the death of a person entails a series of consequences and situations that are worth writing a treaty about it. Parts of these consequences are those of a legal nature, which include those of a tax nature (Model tax convention on income and on capital, n.d.). For this reason if property implies the only effective stimulus to drive work, to make that stimulus infinite, hereditary property was instituted. References Cameron, D., Manning, E. (2012).Federal taxation of property transactions(1st ed.). New Providence, NJ: LexisNexis. Development land tax. (2007) (1st ed.). Cambridge [England]. Engdahl, S. (2011).Taxation. Farmington Hills, MI: Greenhaven Press. McNaught, J. (2007).ABA property tax deskbook. Washington, DC: American Bar Association, Section of Taxation. Model tax convention on income and on capital(1st ed.). Real Property Gains Tax Act(1st ed.). Spencer, P. (2016).Property tax planning. [Place of publication not identified]: Bloomsbury Professional.