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).
Donation reporting threshold will be increased to RM20,000 beginning from year 2020 to further encourage the private sector to donate. Under Section 44(6) of the Income tax Act 1967, the threshold is increased from RM5,000 to RM10,000 effective from 5 September 2019.
Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loan repayment made by employers on behalf of their full-time employees are eligible for tax deduction. This tax incentive is extended to for a period of 2 years.
Tax incentives given to venture capital and angel investors will be extended for 3 years.
Double deduction is given on expenses incurred by companies participating in National Dual Training Scheme for Industry4WRD programmes approved by Ministry of Human Resources (MOHR). This tax incentive is extended for a period of 2 years.
Special Commissioner of Income Tax and Customs Appeal Tribunal will be merged into the Tax Appeal Tribunal. Through this merger, taxpayers who are dissatisfied with the decision of the Director General of the Inland Revenue Board or the Director General of Royal Malaysian Customs Department may submit a tax-related appeal under all applicable tax laws to the Tax Appeal Tribunal beginning 2021.
Tax deduction limit for companies sponsoring arts, cultural and heritage activities be increased up to RM1,000,000 a year. The tax deduction limit for sponsoring foreign arts, cultural and heritage activities remains up to RM300,000 a year.
(Effective from Year of Assessment 2020)
If you need further clarification, please do not hesitate to contact our tax team.
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