BDCM-B-Week26-Tax: Stimulus 2020 for COVID 19 Malaysia

EASING CASH FLOW

To assist businesses most adversely affected, the Government proposes for a period of 6 months beginning from April until September 2020:

First:

To allow deferment of monthly income tax installment payments for businesses in the tourism sector. In addition, companies affected by the COVID-19 to be allowed to revise their profit estimates for 2020 with respect to monthly income tax installment payments without penalty;

Second (Fourth in actual speech):

To exempt the 6% service tax for hotels. However, this exemption will be made effective earlier,  that is from March to August 2020.

STIMULATE TOURISM SECTOR

To stimulate tourism industry, the Government will introduce initiatives as follows:

First:

personal income tax relief of up to RM1,000 on expenditure related to domestic tourism;

STRATEGY III: PROMOTING QUALITY INVESTMENTS

To enhance greater national competitiveness, the Government will promote higher value-added private sector investments through:

First (Fifth in actual speech):

The government will provide a tax deduction of up to RM300, 000 on renovation and refurbishment cost; and

Second (Sixth in actual speech):

Import duty and sales tax exemption on importation or local purchase of machinery and equipment used in port operations for 3 years commencing 1 April 2020.