TAX PAYERS:
- Allowance and Tax relief:
- There will be an accelerated capital allowance for Tourism Vehicle;
- Entertainment duty of 5% is exempted for admission ticket for stage performance for the year 2020;
- There shall be a 100% tax exemption of statutory income for the company who bring more than 500 foreign participants to a conference in Malaysia for the year 2020-2025;
- There shall be a 50% tax exemption of statutory income for the company which organizes Art and culture activities, international sports and recreational competition for the year 2020-2022.
- Double Tax cases, Penalty and Appeals:
- For Tax Payers are subjected to tax for more one country rather than in Malaysian, the Director General of Inland Revenue may apply for additional assessment for the Country that Malaysia have signed the Double taxation treaty;
- For Tax payers that fail to pay their taxes after 60 days of notice, there will not be an additional 5% of interest where there shall be only 10% of the interest chargeable to the taxpayer who fail to pay before and after 60 days;
- For the Tax Payer who are aggrieved from the tax assessment must lodge an appeal from 30 days of receiving the notice and if the tax payer failed to do so, they may within 7 years seek for extension of time from the Director General of Inland Revenue.
COMPANIES:
- RM1,000,000 of tax deduction for Sponsorship for Local Artiste whereas RM300,000 for Foreign Artiste.
- Double Deduction for structured internship programme has been extended for the year 2020 and 2021.
- Employer who pay for Employee’s PTPTN Loan (for loan payable in 2019) are entitled to tax deduction for the year 2020 and 2021.
- The threshold for small value asset has increase from RM1,300 to RM 2,000. Small Medium Enterprise are entitled to have 100% capital allowance. For Non-Small Medium Enterprise, they are only entitled for RM20,000 of the Capital Allowance.
- Companies may have tax relief if they are providing intra-group service to their company.
- Tax rate for companies remains at 24%.
- Small Medium Enterprise are entitled to 17% tax rate for their first RM600,000 (where previously is RM500,000).
- Secretarial & Tax Fees are now combined where previously it is RM5,000 and RM10,000 respectively.
