Details

Published: 17 July 2020

To stimulate business activities, the newly formed SMEs are given income tax rebates of up to RM20,000 for each year of assessment for the first 3 years of assessment subject to conditions 新注册的中小型企业的税务折扣

Beneficiary: SMEs Incorporated within 1 July 2020 to 31 December 2021 于01/07/2020至31/12/2021注册的中小型企业

Conditions 条件

• SMEs registered under the Companies Act 2016 注册于2016年公司法令;
• Paid-up capital of RM2.5 million and below with annual sales not exceeding RM50 million per annum 实收资本不高于250万令吉以及年销售额不超过5千万令吉;
• The amount of rebates is the capital expenditure or operating expenses incurred in each year of assessment subject to a maximum value of RM20,000 per year of assessment 回扣金额为每一课税年度资本支出或运营费用，最高回扣为2万令吉;
• Unused tax rebates cannot be carried forward to the next year of assessment for tax deduction purposes 使用的限额不能结转到下一个课税年度;
• This new entity must use separate plants, equipment and facilities and not transfer from existing or related companies 这个新公司不能从现有或相关的公司转移工厂，设备和设施; and
• Other conditions will be set

We are providing incorporation service and are launching promotion for the newly incorporated company. Please feel free to contact us at +607 - 225 4911 should you need any furhter clarifications. 我们有提供公司注册服务，并正在进行促销。若有任何疑问，欢迎致电我们。谢谢

Promotion: https://www.ycsaccounting.com.sg/latest-news/malaysia-news-2/360-promotion-free-first-year-company-secretary-fee

Company Registration: https://www.ycsaccounting.com.sg/latest-news/malaysia-news-2/359-company-registration-in-malaysia

Details

Published: 24 June 2020

Government has expanded the Wage Subsidy Program (WSP) on the Penjana and Perkeso has announced the updates on 09/06/2020.

• ERP will be combined under PSU since 15 June 2020 从6月15号起，ERP正式与WSP结合
• The expansion of WSP includes those employees who have been requested to take the unpaid leave (provided that they work in the tourism sector or those sectors that are involved in economic activities that are still prohibited during the RMCO period) 此WSP的扩展包括被雇主要求请无薪假的员工（仅限于旅游业或是在RMCO还被禁止复工的领域）
• The employer may apply WSP provided that the employee receives direct subsidy payments 但是雇主必须直接把所领取的WSP给员工
• Overview:
  • Malaysian
  • Monthly Salary ≤ RM 4,000.00
  • Effective from: April
  • Last Application Date: September
  • Subsidy Period: 3 months + 3 months

** The definition of Enterprise Size is based on the total number of Malaysian and non-citizen workers 雇员数量包括外籍员工

• Conditions:
  • Employers and employees must register and contribute to Perkeso before 1 April 2020 雇员及雇主需要于4月1号之前注册并呈报Perkeso (SOCSO & EIS)
  • Registered with SSM or other local authorities before 1 January 2020 于2020年1月1号之前成立
  • Commenced business before 1 January 2020 于2020年1月1号之前开始营业
  • Shall retain employees for 6 months (3 months while receiving the subsidy and 3 months afterwards) 6个月内不能解雇员工或是减薪甚至要求员工申请无薪假
• Supporting Documents:
  • List of employee names;
  • Employer's bank account information (Copy of Bank Statement cover only);
  • Business Registration Number (BRN) information registered by the employer at the time of opening the bank account;
  • Copy of SSM / ROS / ROB / Professional, Scientific or Technical Services / Business License authority;
  • Professional, Scientific or Technical / Business License;
  • PSU50 Account Declaration (can be download from our company website)*; and
  • Supporting documents such as financial statements or sales reports that have been verified by management or other related documents (for those >75 employees)
• If an employee works with Company A and Company B and contributes to SOCSO, both companies are eligible to apply for the Wage Subsidy Program 若某雇员同时在两间公司打工并缴交Socso，那么两间公司都能申请WSP
• The employer will be notified of the status of the application whether approved or rejected by email 申请者将会透过电邮被通知申请结果
• The list of employers who have approved the Wage Subsidy Program application will also appear on the SOCSO website https://www.perkeso.gov.my/index.php/en/wage-subsidy-programme (includes the number of approved employees)
• Employer do NOT need to apply for the following month for the WSP 雇主不需要在接下来的5各月份重新申请
• If there is any changes, employer shall update accordingly 若是有任何更动，雇主需要到该平台更新
• The information shall be tally with those in the Assist portal 所提交的资料必须跟Assist平台的资料一致
• Employee shall start working with the employer before 1 April 2020

Details

Published: 23 June 2020

Landlords of business premises that offer reduction or relief of rental payment to SMEs tenants from April 2020 to September 2020 are allowed to claim a special deduction equivalent to the rental reduction amount subject to the condition that the reduction should be at least 30% of the existing rental rate of the determined period

Q1: Who is eligible to claim this special deduction?

1. Any taxpayers (corporate, individual, cooperative or other business and non-business entities) renting out their business premises to any qualified SMEs tenants
2. The rented premises must be used by the tenant for purpose of carrying out his business
3. The landlord must be a taxpayer with rental income under subsection 4(a) and subsection 4(d) Income Tax Act 1967

Q2: What is the definition of SME for this special deduction purpose?

Registered SMEs and have obtained SME Status Certificate from SME Corp Malaysia

Please check https://smecorp.gov.my/images/pdf/2020/Guideline-SMEDefinition_updated.pdf on the definition of SME

Q3: Can a company claim the deduction if the tenant is a company excluded from National SME definition under SME Guideline?

The landlord is NOT eligible for this special deduction.

Below are the example not considered as SMEs:

1. Entities that are public-listed on the main board; and
2. Subsidiaries of:
   • Publicly-listed companies on the main board;
   • Multinational corporations (MNCs);
   • Government-linked companies (GLCs);
   • Syarikat Menteri Kewangan Diperbadankan (MKDs); and
   • State-owned enterprises

Q4: If my company rents out premise to a related company, would my company qualify for this special deduction?

If the tenant qualifies as SME as defined in question 2 above, the company (landlord) would be eligible to claim the Special Deduction

However, if the SME falls under the categories of exclusion from National SME definition under SME Guideline, the company (landlord) is not eligible for this special deduction

Q5: What is the meaning of business premises for this purpose?

Business premises for this purpose means all premises used for carrying out a business

Example: Office, workshop, warehouse, childcare and rented lot/bazar/booth/stall

However, rental of a residential house used for both residential and business is excluded

Q6: Is this special deduction applicable to rental of other than premises such as machines, parking spaces, telecommunication towers etc.?

This special deduction is for rental of business premises only.

The rented business premises must be used for the purpose of carrying out a business

Q7: What is the minimum required rental reduction in order for the landlord to enjoy the special deduction?

The minimum required rental reduction must be at least 30% from the existing monthly rental rate

Q8: What is the special deduction amount?

The special deduction amount is equivalent to the amount of monthly rental reduction offered by the landlord to the eligible SME tenants

Q9: Which period is eligible for this special deduction?

This special deduction is for a period of rental reduction offered from April 2020 until September 2020

Q10: How is this special deduction granted?

This special deduction will be granted under Income Tax Rules. Example of deduction calculation: A Sdn. Bhd rents a shop lot to B which is an eligible SME for RM5,000 a month (RM60,000 yearly)

A Sdn. Bhd. has agreed to offer rental reduction to B for the month April until September 2020 of RM2,500 a month

1 Assuming no other allowable expenses

2 Current corporate tax rate

Total tax savings to be enjoyed by the landlord is as follows:

Tax savings = RM10,800 – RM7,200 = RM3,600.

For other taxpayers such as individuals, the tax savings is according to the income tax bracket

Q11: If my company reduces the rental amount at a different rate every month, can my company claim this special deduction?

If in any of these eligible months, the rental reduction is less than 30%, then the company is not eligible to claim the special deduction for that particular month/months

Q12: I have received rental payment for months April until September 2020 earlier this year. Can I still offer rental reduction and claim the special deduction?

Yes, for landlord that have received the rental payment for April until September 2020 in advance, the landlord can still offer rental reduction subject to the fulfilment of the conditions.

Q13: What are the supporting documents required?

The supporting documents required to be kept by the taxpayers (landlords) who claim this special deduction are:

1. Stamped tenancy agreement;
2. Rental income statement;
3. SME Status Certificate issued by SME Corp.; *
4. Tenant’s information, rental information and rental reduction methods**

 * Information regarding registration of SME can be referred at https://smereg.smecorp.gov.my or on the official website of SME Corp Malaysia

** To be provided in Working Sheet (HK) of Company Return Form. Please refer to example attached

Details

Published: 06 June 2020

Malaysia government has announced 40 initiatives via 3 thrusts

A. Empower People

A1. Wage Subsidy Programme

The wage subsidy programme will be extended for a further three months with aThe wage subsidy programme will be extended for a further three months with asubsidy of RM600 per employee for all eligible employers

The current wage subsidy program will also be enhanced to allow employers receiving wage subsidy to implement reduced work weekAllow employers receiving wage subsidy to implement reduced work week(e.g. 4-day work week with a reduced pay of 20%). Allow employers toreceive wage subsidy for employees on unpaid leave, subject to employeesreceiving the subsidy directly (only applicable for tourism sector andbusinesses which are prohibited from operating during CMCO)

A2. National Employment Services Job Portal Upgrade

A3. Hiring and Training Assistance for Businesses

The Government will introduce incentives to encourage the hiring of theThe Government will introduce incentives to encourage the hiring of theunemployed as follows:

• Youth
  • RM600 per month for apprenticeships for school leavers and graduates for upRM600 per month for apprenticeships for school leavers and graduates for upto 6 months
• Unemployed Workers
  • Below 40 years old: RM 800 per month for employment of unemployed for up toBelow 40 years old: RM 800 per month for employment of unemployed for up to6 months
  • 40 years old and above or persons with disability: RM 1,000 per month foremployment of unemployed for up to 6 months
  • Training allowance of RM4,000 per individual will alsobe extended to those retrenched but not coveredunder the Employment Insurance System (EIS)

A4. Reskilling and Upskilling Programmes

A5. Gig Economy Social Protection and Skilling

A6. Flexible Work Arrangement Incentives

To sustain the new normal of work-from-home, the Government will supportTo sustain the new normal of work-from-home, the Government will supportemployers and employees with the following:

• Further tax deduction for employers which implement Flexible WorkFurther tax deduction for employers which implement Flexible WorkArrangements (FWAs) or undertake enhancement of their existing FWAs(effective 1st July 2020)
• Individual income tax exemption of up to RM5,000 to employees who receive ahandphone, notebook & tablet from their employer (effective 1st July 2020)
• Special individual income tax relief of up to RM2,500 on the purchase ofhandphone, notebook & tablet (effective 1st June 2020)

A7. Child Care Subsidy

To ease the transition to the new normal of working-from-home, the Government willTo ease the transition to the new normal of working-from-home, the Government willsupport working parents through the subsidy of child care expenses:

• eVouchers of RM 800 per household for mobile childcare services, to be utilisedeVouchers of RM 800 per household for mobile childcare services, to be utilisedfrom now till end of August 2020
• Increase in income tax relief for parents on childcare services expenses, from RM2,000 to RM 3,000 for Year of Assessment (YA) 2020 and 2021

There will also be incentives to encourage child care centres to comply with the newThere will also be incentives to encourage child care centres to comply with the newnormal and to incentivise certification of early education practitioners:

• One-off grant of up to RM5,000 per childcare centre registered with the MinistryOne-off grant of up to RM5,000 per childcare centre registered with the Ministryof Women, Family and Community Development (up to 31st December 2020) tocomply with new healthcare SOPs
• Incentive to train new practitioners for child nursing andearly education course under Ministry of Women,Family and Community Develop

A8. MY30 Public Transport Subsidy

To encourage mobility and reduce the burden of costs of transportation, theTo encourage mobility and reduce the burden of costs of transportation, theGovernment will:

• Introduce an unlimited monthly travel pass costing RM30 for use on all railIntroduce an unlimited monthly travel pass costing RM30 for use on all railservices (MRT, LRT, Monorail), BRT, RapidKL buses and MRT feeder buses

A9. Social Assistance Support for Vulnerable Groups

A10. PEKA B40 Healthcare Support

A11. Internet Connectivity for Education & Productivity

B. Propel Businesses

B1. Micros and SMEs E-commerce Campaign

B2. “Shop Malaysia Online” for Online Consumption

B3. Technical and Digital Adoption for SMEs and MTCs

B4. MyAssist SME One Stop Shop

B5. PENJANA SME Financing (PSF)

Additional financing facility to eligible SMEs:

• The banking sector will offer an additional RM2 billion of funding to assist SMEsThe banking sector will offer an additional RM2 billion of funding to assist SMEsadversely impacted by COVID-19 sustain business operations at a concession rateof 3.5%. This financing facility, with an emphasis to finance new SME customersto Banks, will be made available in mid-June 2020 with a maximum loan size ofRM500,000 per SME.

B6. PENJANA Tourism Financing (PTF)

B7. PENJANA Microfinancing

Dedicated funding support for micro enterprises via:

• New funding program for SMEs and micro enterprises at an interest rate of 3.5%New funding program for SMEs and micro enterprises at an interest rate of 3.5%
• Aggregated approved financing will be capped at RM50,000 per enterprise
• RM50 million is earmarked for women entrepreneurs

B8. Bumiputera Relief Financing

B9. SME Go-scheme for Liquidity Support

B10. Accelerated Payment Terms for GLC and Large Corporates’Accelerated Payment Terms for GLC and Large Corporates’Supply Chain

B11. Tax Relief for COVID-19 Related Expenses

Extend the period and expand the scope of expenses allowed as tax deduction orExtend the period and expand the scope of expenses allowed as tax deduction orcapital allowance for COVID-19’s prevention, including:

• Covid-19 testingCovid-19 testing
• Purchase of PPE and thermal scanners

B12. Financial Stress Support for Businesses

Ease financial stress of business through:

• 50% remission of penalty for late payment of sales tax & service tax due and50% remission of penalty for late payment of sales tax & service tax due andpayable from 1st July 2020 to 30th September 2020
• Extension of special tax deduction for renovation and refurbishment of businesspremises to 31st December 2021
• Extension of Accelerated Capital Allowance on eligible capital expenses includingICT equipment to 31st December 2021
• Extension of special deduction equivalent to 30% reduction in rental for SMEs to30th September 2020

B13. Social Enterprises Elevation

B14. Spur Set Up of New Businesses

To catalyse establishment of new businesses, financial relief will be provided in theTo catalyse establishment of new businesses, financial relief will be provided in theform of:

• Income tax rebate up to RM20,000 per year for 3 years of assessment for newlyIncome tax rebate up to RM20,000 per year for 3 years of assessment for newlyestablished SME between 1st July 2020 to 31st December 2021
• Stamp duty exemption for SMEs on any instruments executed for Mergers andAcquisitions (M&As), for period between 1st July 2020 to 30th June 2021

C. Stimulate the Economy

C1. Dana PENJANA Nasional

C2. National Technology and Innovation Sandbox

C3. Digitalisation of Government Service Delivery

C4. National “Buy Malaysia” Campaign

C5. ePENJANA Credits in e-wallet

Encourage contact-free payment through the provision of:

• RM 50 worth of e-wallet creditsRM 50 worth of e-wallet credits
• Additional RM50 in value through vouchers, cashback and discountsby e-wallets
• Only for offline/physical purchases

This is applicable to all Malaysians aged 18 and above; and earning less thanThis is applicable to all Malaysians aged 18 and above; and earning less thanRM100,000 annually

C6. Incentives for Property Sector

Tax exemption for purchase of properties:

• Home Ownership Campaign (HOC) to be reintroduced:
  • Stamp duty exemption on the instruments of transfer and loan agreement forStamp duty exemption on the instruments of transfer and loan agreement forthe purchase of residential homes priced between RM300,000 to RM2.5 millionsubject to at least 10% discounts provided by the developer. The exemption onthe instrument of transfer is limited to the first RM 1 million of the home pricewhile full stamp duty exemption is given on loan agreement effective for salesand purchase agreements signed between 1st June 2020 to 31st May 2021.
• RPGT exemption for disposal of residential homes from 1st June 2020 to 31stRPGT exemption for disposal of residential homes from 1st June 2020 to 31stDecember 2021 (This exemption is limited to the disposalof three units of residential homes per individual)
• In addition, the current 70% margin of financing limitapplicable for the third housing loan onwards forproperty valued at RM600,000 and above, will beuplifted during the period of the HOC, subject tointernal risk management practices of financialinstitutions.

C7. Tax Incentives for Purchase of Passenger Cars

Tax exemption for purchase of passenger cars:

• Full sales tax exemption on locally assembled carsFull sales tax exemption on locally assembled cars
• 50% sales tax exemption on imported cars

C8. Extended Service Hours in the New Normal

C9. Malaysia as Attractive Horizon for Businesses

Tax incentives for company relocating into Malaysia:

• 0% tax rate for 10 years for new investment in manufacturing sectors with capital0% tax rate for 10 years for new investment in manufacturing sectors with capitalinvestment between RM300 - RM500 million
• 0% tax rate for 15 years for new investment in manufacturing sectors with capitalinvestment above RM500 million
• 100% Investment Tax Allowance for 3 years for existing company in Malaysiarelocating overseas facilities into Malaysia with capital investment aboveRM300 million
• Special Reinvestment Allowance for manufacturing and selected agricultureactivity, from YA 2020 to YA 2021.
• Additional operating expenditure for Malaysian Investment Development Authority(MIDA) to undertake marketing and promotional activities
• Establishment of Project Acceleration & Coordination Unit (PACU) at MIDA
• Enhancement of Domestic Investment Strategic Fund
• Manufacturing License approval for non-sensitive industry within 2 working days

C10. Tourism Sector Support

Tax incentives for the tourism sector:

• Tourism tax exemption from 1st July 2020 to 30th June 2021Tourism tax exemption from 1st July 2020 to 30th June 2021
• Extension of service tax exemption for hotels to 30th June 2021
• Extension of period for income tax relief of RM1,000 for tourism expenses to31st December 2021
• Extension of period for deferment of tax instalment payment for tourism industryto 31st December 2020

C11. Arts, Culture, Entertainment, Events and ExhibitionsArts, Culture, Entertainment, Events and ExhibitionsSector Support

C12. Agriculture and Food Sector Support

C13. Commodity Sector Support

C14. Proposed COVID-19 Temporary Measures Act

C15. Sukuk Prihatin

Details

Published: 14 May 2020

Most of the businesses are allowed to operate during the Conditional Movement Control Order (CMCO) starting from 04/05/2020.

All businesses shall follow the Standard Operating Procedures (SOPs) set by the Government.

Who can resume operation?

Except for the sectors listed in the Prohibited Activities List below, all other business sectors are allowed to reopen and operate under the SOPs. The list will be updated from time to time by Government and regulatory agencies, taking into account the level of business readiness to resume operations.

Prohibited Activities:

1. Entertainment and Recreation
2. Festival Celebration, Parade and Assembly
3. Conferences and Exhibitions
4. Education
5. Sports
6. Social Activities
7. Transportation
8. Business with or without Premises / Markets with or without Premises / Retail or F&B Markets
9. Worker-centered accommodation (CLQ) / hostel / hostel in the manufacturing and other sectors
10. Installation and maintenance of machinery (lifts, escalators, boilers, etc.) for the service sector / tower crane at the construction site
11. Fashion & Accessories Stores
12. Laundry (self-service laundry)
13. Face to face lectures / seminars / courses / training
14. Certification activities for agriculture
15. Barber shops and beauty salons
16. Banking and Financial Services
17. Forest Management
18. Mining and Quarrying
19. Farming and Agriculture
20. Fishing
21. Creative Arts
22. Culture and Art
23. Tourism and Hotel

General Standard Operating Procedures (SOPs)

1. Disease prevention & prevention protocols
   • Employers must provide workplace protocols that include surveillance of the disease and prevention of the spread of infections in accordance with the standards set by the Ministry of Health Malaysia
2. Health screening
   • Provides body temperature or thermal scanner
   • Perform screening to detect Covid-19 related symptoms such as fever, cough, sore throat or shortness of breath daily
   • Screening should be done daily at the entrance of the premises
3. Health reports (on the premises and accommodation provided by the company)
   • All employers are required to contact the nearest health office if a worker is suspected to have COVID-19 symptoms
   • Employees who have a body temperature of 37.5°C or show any symptoms should be referred to the nearby Panel Clinic
   • The employee is not allowed to enter the company premises
4. Social distance and workers' health safety procedures
   • The use of face masks by every employee is encouraged
   • Ensure guidelines for best practices for social distance are provided such as 1 meter markings on floors, desks and chairs and are implemented specifically at:
     • Areas such as the cafeteria, meeting room, prayer room, multipurpose hall and others
5. Eradication & disinfection of premises
   • The sanitation and cleaning process should be carried out three (3) times a day especially in common spaces such as:
     • Lobbies, elevators, cafeterias, meeting rooms, prayer rooms, bus / transportation, indoor recreation centers, toilets and garbage / trash cans
   • The company must carry out the disinfection sanitation process at the factory / premises each time before the shift or operation begins
   • The company must provide hand sanitizer at the entrance, all common areas and other places within the plant / premises
6. Ethics in the general area of the premises
   • On-premises prayer facilities and places of worship should be regulated by social incarceration at a time
   • Canteen / cafeteria operations are allowed with 2 meter intervals between tables
   • Mealtime should be implemented in stages depending on the suitability of the company
7. Company vehicles
   • Office vehicles should undergo the process of disinfection and disinfection every time they are used
   • Private vehicles are encouraged for personal hygiene by employees in accordance with appropriate procedures
8. Emergency response
   • The Company must establish an Emergency Response Protocol Committee for the preparation and implementation of procedures for managing emergency cases (Covid-19 infection or infection investigations)
   • The company is responsible for the full cost of employee screening, if deemed necessary
   • The cost of disinfection should be borne by the company

What to do when resuming operations?

Declaration on MITI

Declaration on MITI is voluntary and not compulsory. However, companies are encouraged to show their commitment with the SOPs set by relevant authorities. The declaration can be made on https://notification.miti.gov.my/

Daily Report

• The employer or co-ordinator in the workplace is RESPONSIBLE for completing and submitting the daily report
• One report per one location
• To be done by all sectors who resume their operation
• No need to submit daily report for those applied but not yet resumed operation
• No need to submit if no worker present to workplace on that day

The report can be completed on https://survey.dosh.gov.my/laporanhariancovid19/

Prihatin Screening Programme (PSP) - by Perkeso

• Screening program for the COVID-19 outbreaks carried out for workers including foreign workers for companies permitted to operate during the period of the Movement Control Order
• FREE of charge
• Only employees who register as SOCSO contributors are eligible
• Employees must register individually through the Perkeso PSP Portal using the following information
• Employee screening is based on an appointment with a service provider, either at the employee's premises or at the service provider's designated premises for sampling purposes
• The screening results will take 48 hours after the sample is taken
• Employees can check the results of the screening through the Perkeso PSP Portal
• Provided by service provider appointed by Perkeso: https://psp.perkeso.gov.my/psp-service-provider.html
• First phase:
  • Focus on screening for employees of companies in the red or yellow zone as well as companies with foreign workers
  • Through sampling of the nose and mouth through a designated service provider
• Second phase:
  • Expected to begin in the first week of May 2020
  • This screening will be carried out for employees who have not been screened during the first phase
  • Through blood droplets by the PSP Panel Clinic
  • Performed twice on the first day (Day 1) and the seventh day (Day 7) before the screening results can be released

Please click HERE to download the guidelines summarized by YCS.