Thursday, 18 June 2020

What's in for tax in the Government's Economic Recovery Plan?

So, the Economic Recovery Plan that we were all looking forward to is out. Let's take a look at some of the incentives announced under Penjana.

For Business: 

  • For the period from 1st July 2020 up to 30th September 2020, a 50% remission of penalty will be given for late payment of sales and service tax due and payable.
  • An extension of special deduction equivalent to 30% of rental reduction for SMEs up to 30th September 2020.
  • A special deduction for renovation and refurbishment business premises is extended until 31st December 2021.
  • An extension of accelerated capital allowance on eligible capital expenses including ICT equipment up to 31st December 2021.
  • For the period between 1st July 2020 to 31st December 2021, an income tax rebate up to RM20,000 per year for 3 years of assessment will be given to newly established SME.
  • Extension of period of deferment of tax installment payment for tourism industry is extended to 31 December 2020.
  • Extension of service tax exemption for hotels up to 30th June 2021
  • Extension of tourism tax exemption from 1st July 2020 to 30th June 2021
  • For the period between 1st July 2020 to 30th June 2021, stamp duty exemption will be given to SMEs on any instruments executed for Mergers and Acquisitions (M&As)

For personal:
  • Income tax exemption of up to RM 5,000 can be claimed by employees who receive a handphone, notebook and tablet from their employer for working from home
  • Increase of income tax relief for parents from RM 2,000 to RM 3,000 on childcare service expenses
  • eVouchers of RM 800 will be given per household for subsidy of childcare expenses for mobile childcare services
  • Special individual income tax relief of up to RM 2,500 on the purchase of handphone, notebook and tablet
  • Income tax relief for domestic travel of up to RM 1,000
  • Stamp duty exemption for name transfer letters and financing agreements for properties under  Home Ownership Campaign (HOC)
  • RPGT exemption on disposal of residential homes from 1st June 2020 to 31st December 2021.
  • 100% sales tax exemption on locally assemble cars and 50% on imported cars. 

Lochana Nanthacumar
Content Management Analyst
Wolters Kluwer Malaysia

1 comment:

  1. synmac tax consultant in Delhi
    doing company registration in Delhi,GST registration in Delhi,Tax consultant in Delhi...
    if you have any requirement GST,ITR
    click the below link...

    company register
    company register in Delhi
    GST register in Delhi
    tax consultant in Delhi

    ReplyDelete

PERMAI Assistance Package

The Prime Minister of Malaysia announced the Perlindungan Ekonomi Dan Rakyat Malaysia (PERMAI) Assistance Package valued at RM15 billion on...