Following the Government announcement on 18 January 2021, Perlindungan Ekonomi Rakyat Assistance Package (PERMAI) has been introduced in order to help those impacted during this pandemic and also to boost our economy. Here are the recap of the incentive that were introduced or extend from the dateline is as follows:
Special Deduction for Rental Discount Given to SME Tenants
Special tax deduction equivalent to the amount of reduction of at least 30% in rent that is given to SME tenants from 1 April 2020 to 31 March 2021 was announced previously were now expanded and extended as follows:
- Expanded to cover rental reduction given to non-SME tenants.
- The special deduction period is extended until 30 June 2021.
Clarity is required on the special deduction period applicable for non-SME tenants hence, we will update once the related information is made available to us.
Personal Tax Relief for Private COVID-19 Screening
Under Budget 2021 the tax relief for medical examination was increased from RM500 to RM1,000 effective from the year of assessment 2021.
To support individuals to undergo COVID-19 screening and detection testing privately, the scope for tax relief for medical examination is expanded to include COVID-19 screening.
Extension of Special Personal Income Tax Relief on the Purchase of Personal Computer, Smartphone or Tablet
A special personal income tax relief of up to RM2,500 was given under PENJANA and is provided to resident individuals for the purchase of personal computer, smartphone or tablet made between 1 June 2020 and 31 December 2020. The special personal income tax relief was given in addition to the existing lifestyle of RM2,500 which also covers the purchase of personal computer, smartphone or tablet.
This special tax relief will be extended for another year until 31 December 2021.
Clarity is required on whether a taxpayer who makes a claim for the special relief for purchases already made from 1 June 2020 to 31 December 2020 will receive another special tax relief of up to Rm2,500 for additional purchases made from 1 January 2021 to 31 December 2021.
Wage Subsidy Programme 3.0
Under the previous Wage Subsidy Programme 2.0, employers who have fulfilled certain conditions can apply for a subsidy of RM600 per employee for a period of 3 or 6 months for employees who earn RM4,000 or less per month subject to a maximum number of 500 employees for a period of three (3) months.
The new Wage Subsidy Programme 3.0 now allows employers of any sector which operates in the MCO states to apply for a subsidy of RM600 per employee for a period of one month for employees who earn RM4,000 or less per month subject to a maximum number of 500 employees.
Human Resources Development Fund (HRDF) Levy Exemption
It is announced that the HRDF will exempt the employer levy for companies that are unable to operate during the Movement Control Order (MCO) and Conditional MCO periods.
Source: FAQ for Additional Special Grant
Extension from Previous Incentive
- Continuing the Moratorium and Loan Instalment Reduction.
- Extension of sales tax exemption on passenger motor vehicles.
- Continuing the electricity bill discount.
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This material or communication has been prepared for the sole purpose of providing general information to our clients, and is not intended to be relied upon as accounting, tax or other professional advice. Consent has to be obtained from the firm prior to any act of republishing or circulating to the general public. While the information is considered correct at the date of publication, changes in circumstances or updates in tax ruling after the time of publication may impact its accuracy and reliability. We have not, by means of this material or communication, rendered any professional advice or services. Thus, we shall not be responsible for any losses sustained by any person who relies on this material or communication. Please refer to our tax advisors should you require our consultancy services.
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