Law on Casino Tax in Malaysia

Recently the Malaysian government introduced a new tax on gaming in Malaysia called the Malay’s Gaming Revenue Motion 2020. This motion has been passed to make changes in the existing tax system for the sake of the country’s long-term financial plan and for the betterment of the national economy. A lot of people from all walks of life are very happy with this move and they say that the changes are very good for the people of Malaysia. They say that they are also satisfied with the increase in tax collection in the casinos.

According to the new law, any increase in the tax rate in a single year shall only be applied to the corporate income and the increase in corporate tax rate shall not be applicable to the personal income of an individual. A corporate and a personal tax rate can increase simultaneously if such increase is approved by the Kuala Lumpur Agreement (KDA). But, there will be a limit to the increase in the corporate rate and that limit is equivalent to one percent of the gross domestic product or GDI. The personal rate on the other hand cannot increase during the same year. There are some exceptions to the above mentioned agreement, which can be made by the government or by the Central Bank of Malaysia.

In other words, the law states that the increase in the tax rate cannot be applied to the profits of the casinos only. The law also covers the operation of sports clubs and even those private companies engaged in the business of running race courses. However, they can increase their rates for two reasons, one is the increase in the level of tax that they need to pay and the second is the increase in their profits. All these activities are known as tax evasion.

Tax evasion is one of the major problems that the government has to face in Malaysia. Recently, there have been a number of cases filed against the casinos and the operators of the said institutions. As the government is keen to discourage people from using the casinos and the operators for money laundering purposes, the law on this matter is strict. The law on tax evasion is very complicated. There are many gray areas as well where the casinos are not accused of any wrong doing.

There is also the point of calculation of the increase in the Malaysian tax. The law specifies how much tax should be charged for every 1000 of game wagers made at the casino. This also includes the hotel and food services inside the casino. In many instances, the operators make such calculations as if the tax on every bet is the same as the increase in the salary of the employee. This means that the operators and the employees are benefiting from the law and there is nothing wrong in it.

A casino that has the approval of the Malaysian government and which is licensed to operate will be required to register with the Gaming Commission of Malaysia or the Gaming Licensing Board of Malaysia. Once the casino has been licensed by the respective boards, it will be required by law to provide all the information that they have about the operation of their casinos to the concerned authorities. The documents and statements provided by the company on request are to be verified by the concerned departments.

There are some countries where the law on casino tax is so harsh that it is not allowed to increase the rate for a fixed period of time. If the law on increasing the rate is relaxed, the casino company will have to pass through the scrutiny of the courts. The company can only increase the rate after consulting with the Attorney General, or the Attorney General’s office.

The law on casino tax in Malaysia is so complicated that no one can really understand the whole thing. You will have to consult a lawyer who has expertise in this field before you increase the casino’s tax rate. Once the lawyer recommends the increase in the casino’s tax, you will be legally allowed to do so. Consulting a lawyer is advisable if you are planning to set up a casino in Malaysia.

source https://trustedmalaysia.casino/law-on-casino-tax-in-malaysia/