With the recent shift in the power of the Malaysian government (again), many eyes were on the Budget 2021 and the measures to undertake in these challenging times. With the COVID-19 pandemic having affected many parts of our daily livelihood, the Budget 2021 would play a pivotal role to help steer out of these uncertain times.
Part 1 of this series aims to adumbrate the key proposals in Budget 2021 from the tax perspective whilst Part 2 analyses the Finance Bill 2020 in greater detail.
1. Personal tax
a) For individuals with chargeable income between RM50,001 to RM 70,000, the tax rate to be reduced by 1% from YA 2021 onwards
b) For non-Malaysians working in companies investing in new strategic investments, the income tax rate is 15%.
c) The monetary value of personal income tax relief has increased for various types of expenses/income.
d) Similarly, the government has also increased the monetary limit for income exempted from tax.
2. Corporate Tax
a) The period to claim further deductions for certain expenses is extended.
b) The period where a certain class of income is exempted from tax is extended.
c) The Budget included some review of the current incentive program structure.
3. Indirect Tax
4. Stamp Duty