Feature
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Recap of News and Happenings In The Retail Sector Since March 2020, the Malaysian government had given more than RM255 billion in incentives to jumpstart the economy which was affected by the Covid-19 pandemic. Its latest addition, the Pelan Jana Semula Ekonomi Negara (PENJANA) stimulus package, introduced in June 2020, is valued at RM35 billion. Listed here are some of the incentives of this package, compiled by Stratos Consulting Group Sdn Bhd, a market research consulting firm.
Zero% Tax Rate for:
• 10 years for companies in
the manufacturing sector with investments in fixed assets between RM300 million to RM500 million; and • 15 years for companies in the manufacturing sector with investments in fixed assets exceeding RM500 million.
• 100% investment tax allowance for 3 years for an existing company in Malaysia that will relocate its overseas facilities into the country; • A special reinvestment allowance for selected manufacturing and agricultural activities for the year of assessment 2020 to 2021; • Income tax rebate of up to RM20,000 per year for the first 3 years for a small and medium-sized enterprise (SME) incorporated between 1st July 2020 and 31st December 2020. • The exemption of stamp duty on any instruments executed for mergers and acquisitions between 1st July 2020 and 30th June 2021. • Eligible businesses can receive up to 50% remission of penalties for the late sales and service tax (SST) payments due and payable from 1st July 2020 to 30th September 2020. • Enhanced Accelerated Capital Allowance program to include capital expenditure incurred on information and communications technology (ICT) equipment. • Tax deduction on reduction or waiver of rental – landlords were eligible to tax deductions equivalent to the 30% reduction in rental from April to June 2020. This has now been extended to September 2020 under the PENJANA package. This incentive is eligible for landlords who rent their premises to SME tenants and the premises must be used for their business operations. Malaysia Retailer Vol 8 No 3
Incentives For Tourism Sector
• Personal income tax relief of up to RM1,000 incurred on domestic travel between 1st March 2020 to 31st August 2020. Now extended to December 31, 2020. • Businesses in the tourism industry (airlines, hotel operators, travel agencies, etc.) are eligible to defer on their income tax instalments for the periods: • 1st April 2020, to 30th September 2020. • 1st October 2020, to 31st December 2020. • Service tax exemption for hotels extended to 30th June 2021 (previous deadline: 31st August 2020). Incentives for Property Sector
• Reintroduction of Home Ownership Campaign • Developers to provide at least 10% discount on price of property • 70% margin on housing loan for a third residential property valued at RM600,000 and above will be lifted – pending confirmation from the Malaysian government. • Stamp duty exemption for instruments of transfer (limited to first RM1 million) and loan agreements (full exemption) for purchase of a residential property valued between RM300,000 to RM2.5 million – executed between 1st June 2020 and 31st May 2021. Exemption of Real Property Gains Tax
• Exemption on gains arising from the disposal of residential property from 1st June 2020 to 31st December 2021 – limited to 3 residential property per individual Malaysian citizen.
