Latest news with #taxexemption
Gizmodo
14 hours ago
- Business
- Gizmodo
Silicon Valley Is Cashing Its Check After Backing Trump
The cost of living is increasing, wages for workers are stagnant, and people are looking for a break. Silicon Valley is getting one instead. According to Bloomberg, a little-known tax benefit known as the Qualified Small Business Stock (QSBS) that has become a favorite carve-out of tech startups would get expanded under a spending bill proposed by Republicans in the Senate and could potentially put more than $17 billion back in the coffers of Silicon Valley execs. The QSBS provision is a tax exemption that applies to the stock of qualified small businesses like certain tech startups. The rule allows shareholders in one of these businesses to sell or exchange their stock while being exempted from some or all of the capital gains tax that they would otherwise have to pay on those sales. The specifics are a bit complex, but currently, it is set up to allow early-stage investors to benefit if they hold onto their shares for five years. The proposed changes to the rule, per Bloomberg, would expand the benefit considerably. A provision slipped into the so-called 'One Big Beautiful Bill' would allow investors to come in later, cash out earlier, and still score a nice chunk of cash-free income off their investment. According to data from the Department of the Treasury, about 33,000 people have claimed the QSBS benefit in the last decade. They netted $51 billion in 2021 alone from it, which was a record year. Notably, the Treasury also found that 90% of the income claimed through QSBS came from taxpayers who were reporting more than $1 million of gains—basically, folks who are cashing out big time without paying anywhere near what an average person has to hand over to the federal government. The Treasury Department projects that the QSBS provision will keep about $44.6 billion from being taxed from 2025 to 2030. If the Republicans' proposal moves forward, that would add another projected $17.2 billion in revenue that doesn't come back to the government over that period, according to data provided by the Congressional Joint Committee on Taxation. According to The Guardian, Silicon Valley executives and employees poured about $394 million into Donald Trump's 2024 election campaign. So scoring $17.2 billion in tax breaks certainly seems worth the spend. That's a cool 4,265% return on investment! For what it's worth, Democratic lawmakers proposed significantly rolling back the QSBS rules back in 2021, in a way that would have slashed the amount of income that could be excluded from taxes in half. Instead, the rich get richer.
Yahoo
a day ago
- Business
- Yahoo
Imported mandarins and dates join apples and oranges in SST exemption, beauty services too
The government has revised its SST expansion plan to exempt imported mandarin oranges and dates, while essential goods like rice and local fish remain tax-free. The Service Tax registration threshold has been raised to RM1 million for selected sectors, easing compliance for small businesses. The proposed Service Tax on beauty and personal grooming services has been cancelled following public feedback. PUTRAJAYA, June 27 – The government has announced today that it has revised its Sales and Service Tax (SST) expansion plan following feedback from the public and businesses. In a statement, the Finance Ministry (MOF) said the three key amendments, which will take effect on July 1, aim to ease the financial burden on consumers and small businesses while maintaining a progressive tax structure. Imported mandarin oranges and dates will also now be exempted from SST, after Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced yesterday that apples and oranges will not be covered by the tax. The MOF stressed that essential goods such as rice, chicken, beef, vegetables, eggs, and local fish varieties like selar, tongkol, cencaru, and sardines would remain exempt from the Sales Tax. To support small businesses, the threshold for Service Tax registration has been raised from RM500,000 to RM1 million for leasing, rental, and fee- or commission-based financial services. This adjustment means only businesses with annual sales above RM1 million in these sectors will be required to register and pay Service Tax, providing relief to many Micro, Small, and Medium Enterprises (MSMEs). The ministry also said it has decided to scrap the proposed Service Tax expansion on beauty services, including manicure and pedicure treatments, facials, barber services, and hairdressing. The MOF urged the public to refer to official communications for accurate information and not to spread misinformation about the SST revisions. Previously, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said the government was open to reviewing the implementation of the revised and expanded SST on several selected imported goods, including fruits such as apples and mandarin oranges. On June 9, the government announced a targeted SST review set to take effect from July 1, 2025. The sales tax rate will remain unchanged for essential goods, while a five or 10 per cent rate will be applied to non-essential or discretionary goods. The scope of service tax has also been expanded to cover six new categories: rental or leasing, construction, finance, private healthcare, education, and beauty.
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Beauty services exempted from expanded SST
Services like manicures, pedicures, facials and hairdressing will continue to be exempted from SST. (Envato Elements pic) PETALING JAYA : The finance ministry has decided not to include beauty services under the expanded sales and service tax (SST) which comes into effect on July 1. The Treasury said the decision was made by Prime Minister Anwar Ibrahim, who is also finance minister, in view of public sentiments. This decision means that services like manicures, pedicures, facials and hairdressing would be exempted from the expanded SST. An 8% service tax rate was set to be imposed on the sector for services exceeding RM500,000 in a 12-month period. Former finance minister Lim Guan Eng had warned that this would anger women voters and called for the expanded SST to be postponed as a whole. In a statement, the ministry also said mandarin oranges and dates would be exempted from SST. 'The ministry would like to reiterate that the Madani government has not imposed any sales tax on daily essential goods, in order to mitigate pressure on the cost of living for the majority of Malaysians. 'These tax-exempted essential goods, whether locally-produced or imported, include rice, chicken, beef, vegetables and eggs. Local fish varieties, including selar, tongkol, cencaru and sardines – whether frozen, chilled or fresh – will also continue to be exempted from the sales tax,' it said. Yesterday, Anwar announced that imported oranges and apples would be exempted from the SST as many from among the B40 income group would buy these fruits as they were affordable. Putrajaya has also decided to raise the service tax registration threshold for leasing or rental and financial services from RM500,000 to RM1 million, to reduce the number of small businesses that would be affected. Initially, an 8% service tax rate was to be charged for these services. Similarly, the threshold for businesses subject to service tax on rental services has also been raised from RM500,000 in annual sales to RM1 million. 'This means that only businesses with sales exceeding RM1 million will be required to pay service tax on rental services, providing relief to more micro, small, and medium-sized enterprises (MSMEs).'
Malay Mail
a day ago
- Business
- Malay Mail
Imported mandarin oranges, dates join apples and oranges in SST exemption; beauty services also no longer taxed
The government has revised its SST expansion plan to exempt imported mandarin oranges and dates, while essential goods like rice and local fish remain tax-free. The Service Tax registration threshold has been raised to RM1 million for selected sectors, easing compliance for small businesses. The proposed Service Tax on beauty and personal grooming services has been cancelled following public feedback. PUTRAJAYA, June 27 – The government has announced today that it has revised its Sales and Service Tax (SST) expansion plan following feedback from the public and businesses. In a statement, the Finance Ministry (MOF) said the three key amendments, which will take effect on July 1, aim to ease the financial burden on consumers and small businesses while maintaining a progressive tax structure. Imported mandarin oranges and dates will also now be exempted from SST, after Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced earlier this week that apples and oranges will not be covered by the tax. The MOF stressed that essential goods such as rice, chicken, beef, vegetables, eggs, and local fish varieties like selar, tongkol, cencaru, and sardines would remain exempt from the Sales Tax. To support small businesses, the threshold for Service Tax registration has been raised from RM500,000 to RM1 million for leasing, rental, and fee- or commission-based financial services. This adjustment means only businesses with annual sales above RM1 million in these sectors will be required to register and pay Service Tax, providing relief to many Micro, Small, and Medium Enterprises (MSMEs). The ministry also said it has decided to scrap the proposed Service Tax expansion on beauty services, including manicure and pedicure treatments, facials, barber services, and hairdressing. The MOF urged the public to refer to official communications for accurate information and not to spread misinformation about the SST revisions. Further details, including legislation and FAQs, are available through the Finance Ministry and Royal Malaysian Customs Department's platforms.
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Exempt mandarin oranges, dates from SST, says PKR MP
Petaling Jaya MP Lee Chean Chung said small businesses and traders rely on the seasonal demand for fruits like dates to cover operational costs. (Bernama pic) PETALING JAYA : Petaling Jaya MP Lee Chean Chung today urged the finance ministry to consider exempting more fruits from the expanded sales and service tax (SST), particularly mandarin oranges and dates. He proposed that special SST exemptions be made for the two fruits during the Chinese New Year and Aidilfitri festive seasons, describing it as a targeted fiscal approach that would be sensitive to the cultural and religious needs of Malaysians. 'These two fruits are inseparable from major Malaysian festive celebrations – Chinese New Year and Ramadan, as well as Hari Raya Aidilfitri. 'Imposing a 5% tax on these fruits not only increases consumers' burden but also contradicts the core principle behind the expanded SST's implementation, which is to only target specific groups,' the PKR MP said in a statement. If the two fruits are not exempted, he said the expanded SST would place even greater pressure on small businesses and traders that rely on the seasonal demand for these fruits to cover operational costs. Lee's call followed Prime Minister Anwar Ibrahim's announcement this morning that imported apples and oranges would be exempted from the expanded SST, which comes into effect on July 1. Although he believed that there was no need to consume imported fruits, Anwar acknowledged that many from among the B40 income group would buy apples and oranges, in part due to their affordability. The finance ministry previously said the expansion of the SST from July 1, including a 5% rate on imported fruits, was aimed at boosting local agricultural demand and strengthening food security.
