Tax-Related Measures under PEMERKASA+
The PEMERKASA+ economic stimulus package was announced by the Prime Minister on 31 May 2021 in order to help alleviate the challenges Malaysians are facing following the recent intensification of the Movement Control Order (MCO).
The PEMERKASA+ stimulus package is valued at RM40 billion including a direct fiscal injection of RM5 billion. The three primary goals of the PEMERKASA+ stimulus package are as follows:
- To boost the capacity of Public Health;
- To continue the Prihatin Rakyat Agenda; and
- To support business continuity.
We highlight below the tax-related initiatives that have been announced.
INCOME TAX MEASURES
Consideration of appeals on penalties and rescheduling of payments by the Inland Revenue Board of Malaysia (IRBM) | To reduce the financial burden of affected taxpayers and businesses, it was announced that the IRBM will consider the following:
IRBM will consider the taxpayer’s appeal against the penalties imposed on a case-by-case basis, provided the taxpayer has a valid justification.
In order to enjoy this flexibility offered by the IRBM, the taxpayer must continue to comply with the payment of the principal amount of tax payable. The penalties covered under this offer are penalties imposed under the Income Tax Act 1967, Real Property Gains Tax Act 1976 and Stamp Act 1949.
IRBM will consider applications of taxpayers who have lost their source of income or face issues in settling their outstanding taxes due to the implementation of MCO.
Following the above announcement, the IRBM issued a Media Statement which highlighted that the above flexibilities are only applicable to taxpayers whose income have been affected due to the pandemic and the implementation of MCO. Taxpayers who wish to apply are recommended to contact the branch office that handles their respective income tax files.
Queries or feedback can be directed to Hasil Care Line at 03-8911 1000 or 03-8911 1100 (for those who are overseas), HASiL Live Chat and via feedback form at this link. |
Extension of special deduction for rental reduction | It was previously announced under PERMAI that the qualifying period for the special tax deduction equivalent to the amount of at least 30% rental reduction given to SME tenants was extended until 30 June 2021 and includes rental reduction given to non-SME tenants.
The qualifying period for the above special tax deduction is now extended for another 6 months from 1 July 2021 until 31 December 2021. |
INDIRECT TAX MEASURES
Extension of sales tax exemption on passenger motor vehicles
| It was previously announced under PERMAI that until 30 June 2021:
The qualifying period for above exemptions is now extended until 31 December 2021. |
OTHER TAX MEASURES
Extension of exemption of Human Resources Development Fund (HRDF) levy | It was previously announced under PEMERKASA that HRDF levy is exempted up to June 2021 for affected companies in tourism and retail sectors.
The exemption is now extended to all employers who are registered with the HRDF for the month of June 2021.
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Extension of stamp duty exemption of the Home Ownership Campaign (HOC) | It was previously announced under PENJANA that:
The qualifying period for above exemptions is now extended until 31 December 2021. |