Special Tax Deductions on Rental Discount to SME Tenants

​Owners of buildings or business premises will be given an additional tax deduction equivalent to the amount of reduction in rent that is given to tenants which are Small and Medium Enterprises (SMEs) for the months of April 2020 to June 2020.

Qualifying person
Any taxpayers (companies and non- companies)

• Companies
• Individuals
• Cooperatives
• Other business and non-business entities

who rent business premise to any SMEs.

Special Tax Deduction

• Amount given is equivalent to the amount of reduction in rental to be determined on a month-by-month basis
  
• Subject to rules to be gazetted

Conditions on deduction claims

• Minimum rental deduction of 30% of original monthly rental charged to the SME tenant
  
• Rental for April, May and June 2020

Supporting documents to be kept

• Official tenancy agreement
• Rental income statement
• Certification of SME status of tenant
  
• Certification of reduced rental (to be prescribed under rules that are to be gazetted)

​If you need further clarification, please do not hesitate to contact our tax team.
​

Photo credit: https://pxhere.com/en/photo/1205466
Source: CADANGAN LANGKAH CUKAI PRE 3.0. (SME)