Approved Major Exporter Scheme (AMES) - report to be prepared for exemption

The Royal Malaysian Customs Department (RMCD), on 9th April 2021 has published the reports that need to be prepared by Manufacturers or traders who are exempted under the Approved Major Exporter Scheme (AMES) are required to prepare the following reports:

• Trader:
  • • AMES — 03: monthly statement for movement of taxable goods by trader under AMES.
• Manufacturer of exempted goods:
  • • AMES — 04: monthly statement for movement of raw materials, components, packaging and packaging materials
  • • AMES — 04A: monthly statement for export/local sales of exempted finished goods.
• Trader or manufacturer — non-compliance:
• • AMES — 02: declaration form to be furnished when making payment of sales tax arising from non-compliance with the AMES conditions.
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• (Note: For further information about our Sales and Service Tax (SST) subscription, contact us at my-sales@wolterskluwer.com (Malaysia).

  
  
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Covid-19 and Malaysia's Economic Stimulus Package

Malaysia has confirmed a total of 22 cases as of 25 February 2020 and so far 20 patients have recovered. In order to treat Covid-19 suspected and positive cases, The Ministry of Health had expedite Covid-19 screening at 48 hospitals and announced 26 referral hospitals. The Government started taking stricter control measures after discovering the 14th case which occurred through a human-to-human transmission. 

The most affected sectors in Malaysia are the Travel and Tourism and associated sectors such as accommodation (Hotels) as they have been getting a lot of cancellations from tourists ever since the outbreak. Bank Negara Malaysia announced that the Covid-19 outbreak will affect Malaysia's economic growth in Q1 2020. 

Analyst and industry players hopes that the Government will introduce a stimulus package to stimulate Malaysia's economy and lighten any adverse repercussions from the Covid-19 outbreak. A stimulus package is soon to be announced and the followings are some of the proposed measures by experts: 

 * EPF contribution rate reduction for affected sectors. 

 * Incentives and Tax rebates for affected sectors. 

 * Discounts for affected sectors. 

 * Stimulus package for the services and manufacturing sector to boost economic growth. 

 * Reduction in borrowing cost.

Let's hope for some exciting measures to be announced in the upcoming stimulus package. 

Lochana Nanthacumar

Content Management Analyst

Wolters Kluwer Malaysia 

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