[Taxation] Economic Stimulus Packages in Malaysia
The Inland Revenue Board of Malaysia has extended the submission deadline for a company’s income tax return form for the year of assessment (YA) 2019 whilst taxes which are due during the Movement Control Order period may be paid by or before 31 May 2020, without incurring any late payment penalties.
Revisions to the estimates of tax payable may be made in the third, sixth and ninth tax instalments respectively. Commencing April 2020, SMEs and the tourism sector have been granted an automatic 3-month and 6-month deferral respectively on the payment of their monthly tax instalments.
Similarly, the Royal Malaysian Customs Department granted an extension of time to 13 May 2020 for the payment of sales tax, service tax on imported taxable services, tourism tax and departure levies which were due in March and April 2020.
Other tax benefits include:
- Accelerated capital allowance on qualifying capital expenditure incurred on machinery and equipment
- Tax deduction of up to RM300,000 on qualifying expenditure incurred from 1 March 2020 to 31 December 2020 on renovating and refurbishing business premises
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