Tax Identification Number (TIN) will be introduced for all companies as well as individuals above 18 years of age.
Small Value Assets will be given 100% capital allowances for asset with a value of up to RM2,000. The limit of special allowances claimable for each year of assessment is limited to RM20,000 for non-SME.
Tax deduction on expenses incurred on secretarial fee and tax filing fee will be combined and allowed up to RM15,000 each year of assessment.
For the purpose of RPGT computation, market value as of 1 January 2013 will be used as the acquisition price for disposal of real properties acquired prior to year 2013.
Penalty on failure to remit the tax due and payable within the stipulated time is 10% on the tax due and payable. The further 5% penalty will not be imposed.
Stamp duty remission of 50% for transfer of real property between parents and children and vice versa is restricted to Malaysian citizen only.
Conventional and Shariah-compliant loan agreements in foreign currency are subject to stamp duty at 0.5% of the loan amount. However, the maximum amount of total duty payable is increased from RM500 to RM2,000 for loan agreement from 1 January 2020.
SME will be subject to income tax rate of 17% on the first RM600,000 of chargeable income. The remaining chargeable income is taxed at 24%. This will be given only to a company or LLP having an annual sale of not more than RM50 million (in addition to the ordinary share capital / capital contribution requirement).
Increase in limit of tax relief for fees paid to childcare centers and kindergartens. To assist the financial burden of parents in providing childcare and early childhood education, it is proposed that individual tax relief be increased from RM1,000 to RM2,000.
Extension of tax exemption for women returning to work from a career break. It is proposed that the existing tax incentive be extended for a period of four (4) years from Year of Assessment 2018 to Year of Assessment 2024.
Expansion of scope of income tax relief for medical expenses. The scope of income tax relief on medical treatment expenses be expanded to cover the cost of fertility treatment.
Extension of period of income tax deduction on Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loan amount paid by employers on behalf of employees. To encourage more employers to make PTPTN loan repayments on behalf of their employees, the personal income tax exemption for employees be extended for further period of two (2) years.
Income tax rebate for departure levy imposed on outbound air passenger performing umrah and pilgrimage to holy places. The rebate is equivalent to the amount of levy paid, to be given and can be claimed twice in a lifetime.
Donation for charitable and sports activities and projects of national interest. Deduction on approved donation be increased from 7% to 10% of aggregate income.
Eligibility for SOCSO contribution will be expanded to cover self employed individuals in 18 key sectors and eligible spouse under i-Suri programme:
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