Budget 2020

Since we will be entering 2020 soon, lets take a recap of some of the exciting Tax highlights of our Budget 2020. It was presented by our Finance Minister YB Lim Guan Eng on 11 October 2019.

Budget 2020 Higlights:-

* Corporate income tax rate for SME's will now be taxable at 17% for the first 600,000 of the company's chargeable income. 

* Also if SMEs are focusing on adopting digitization or if they are undertaking pilot projects on digital applications, then they might be entitled to grants and loans in 2020. 

* To encourage companies to participate in export fairs, the government will provide a tax relief up to RM 25,000 compared to RM 10,000 previously. Please note, this relief is upon approval and submission of certain documents required by Inland Revenue Board Of Malaysia (IRB). 

* Companies are allowed to claim or deduct 10% of approved donations made for the year. Cash Wakaf is now entitled to be deducted as well. 

* The Government has increased the relief for childhood care (Taska) to RM 2,000. It was RM 1,000 previously. 

* Individuals are now eligible to a tax relief of up to RM 6,000 for medical expenses which includes fertility for YA 2020. 

* Individuals with taxable income of RM 2 million and more will now be taxed at 30% instead of 28%. 

Lochana Nanthacumar
Content Management Analyst
Wolters Kluwer Malaysia