MRCA Event
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MRCA Youth Talk: Tax Tips for Retailers, What You Should Know MRCA Youth recently hosted a session to enlighten members on tax tips featuring two leading tax experts from McMillan Woods – Dato’ Seri Raymond Liew, Founder President and Jason Boey, Tax Director. n 9 June 2021, members of MRCA came together for a virtual session on tax tips facilitated by Dato’ Seri Raymond and Jason Boey. A total of 134 members attended the session which addressed tax rates, personal tax relief, microcredit schemes, enhancement of wage subsidy, and IRB’s regulations during MCO, among others. During the session, Dato’ Seri Raymond advised members seeking tax advice to reach out to MRCA. He added that many retailers were facing uncertainty on tax relief efforts by the government, the moratorium and PEMERKASA Plus. “There is a revised tax rate for SMEs with a capital of up to RM2.5 million and an additional condition of annual sales of not more than RM50 million with, 17% for chargeable income of up to RM600,000, and 24% for the remaining chargeable income from the year of assessment 2020,” said Dato’ Seri Raymond.
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CAPITAL ALLOWANCE On capital allowance, Dato’ Seri Raymond shares that accelerated capital allowance will be given for qualifying capital expenditure incurred on machinery and equipment including information and communication technology (ICT). “That starts from 1 March 2020 to 31 December 2021 where the annual allowance will be increased to 40% (current rates range from 10% to 20%) with initial allowance of 20%,” he explains. Malaysia Retailer Vol 9 No 2
PERSONAL TAX RELIEF Touching on Personal Tax Relief 2021, Dato’ Seri Raymond notes that special tax relief of up to RM2,500 is given for the purchase of personal computers, smartphones or tablets, incurred from 1 June 2020 to 31 December 2021. A tax relief amounting to RM8,000 is given for the National Education Savings
Scheme (SSPN) extended from the year of assessment 2020 to year of assessment 2021. “In so far as personal tax is concerned, there is a tax deduction of 1% (from 14% to 13%) for individuals whose chargeable income range from RM50,001 to RM70,000, to help out mid-tier income earners,” states Dato’ Seri Raymond. “There is a personal tax relief of up to RM8,000 given for medical expenses incurred for the treatment of serious diseases for taxpayers, spouses and children, as well as the cost of fertility treatment, including a full medical check-up of RM1,000 and prescribed vaccination of RM1,000,” he adds. Tax relief is also extended for full medical check-up to cover COVID-19 screening. A restricted amount for Lifestyle Relief has been increased from RM2,500 to RM3,000, extended to include sports-related expenditure
