The RM35 billion Economic Recovery Plan (PENJANA) that was recently announced by the Malaysian Prime Minister included a variety of initiatives to stimulate Malaysia’s overall economy.
Among the initiatives announced are:
1. Remission of penalties of 50% for late sales and service payments (Jul-Sep 2020),
2. Extension of Accelerated Capital Allowances for Machinery and ICT equipment for expenses incurred between 1 March 2020 to 31 December 2020,
3. Special tax deduction on renovation and refurbishment up to RM300,000 incurred between 1 March 2020 to 31 December 2020,
4. Special tax deduction on rental discount given to SME tenants from April 2020 to September 2020,
5. Tax deduction for Covid-19 donation to approved institutions,
6. Tax relief and deduction on Covid-19 related expenses
7. Flexible work arrangement tax incentive
8. Tax exemption of up to RM5,000 to employees provided with handphone, notebook and tablet by employer, and
9. Personal tax relief of up to RM2,500 to individuals who purchase handphone, notebook and tablet.
10. Socso coverage for workers involved in accidents while WFH,
11. Penjaya SME financing with low interest rate of 3.5% per annum,
12. Gig economy social protection and skilling with matching grants of RM50 million for Gig economy platforms and RM25 million for MDEC’s Global Online Workforce programme,
13. PENJANA Microfinancing – low financing interest rate of 3.5% per annum,
14. Accelerated payment terms for GLCs and large corporate supply chains,
15. Extension of wage subsidies. Initial wage subsidy of RM1,200 per staff from April 2020 to September 2020, now extended a further 3 months with a subsidy of RM600,
16. Double deduction on expenses incurred on approved tourism-related training, and
17. Tax rebate of up to RM20,000 for companies incorporated between 1 July 2020 to 31 December 2020
The above list contain the major initiatives announced by the Prime Minister. Please consult your tax advisors for further information.