Malaysia News

Additional Economic Stimulus Package

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  • Wage Subsidy for Employee Monthly Salary not more than RM4,000

1 – 75 employees

RM1,200 per employee

76 – 200 employees

RM800 per employee

> 200 employees

RM600 per employee

    • Period: 3 months
    • Conditions:
      • Registered with SSM or other local authorities and Perkeso before 1 January 2020
      • Shall retain employees for 6 months (3 months while receiving the subsidy and 3 months afterwards)
  • Government suggest private premises owners to reduce their rental rates at least during the MCO period and 3 months after the MCO ends.
    • Owners of buildings or business spaces that provide rentals or leases to renters of business premises consisting of small and medium enterprises will be given an additional tax deduction equal to the amount of the rent reduction for April 2020 to June 2020.
    • These additional tax deductions are subject to the terms of the deduction rent, which should be at least 30% of the original rental rate for that period
  • Government allow a 25% reduction in foreign workers' levy payments to all companies whose work permit expires April 1 to December 31, 2020
  • Government has agreed to encourage mutual agreement between employers and workers on the terms of employment, including the option of pay cuts and the provision of unpaid leave during the MCO period
  • Government has agreed to grant a moratorium automatically within 30 days of the MCO last date for the company to submit a statutory document to SSM.
  • The filing period of the company's financial statements was also extended to 3 months from the date of the MCO. This flexibility is given to companies with financial years ending September 30 to December 31, 2019. However, the company will need to apply for such extension from SSM without charges

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It's end of March. Let's summarize the extension for the submission and payment due for this period.

Companies:

Form Types

Period

Statutory Due Date

Grace Period

Latest Due Date

Sales and Service Tax (SST)

Jan’20 – Feb’20

31 March 2020

One Month

30 April 2020

Withholding Tax

Payment Received within Feb’20

31 March 2020

One Month

30 April 2020

Form C

YE31/07/2019

29 February 2020

Two Months

30 April 2020

 

YE 31/08/2019

31 March 2020

Two Months

31 May 2020

 

YE 30/09/2019

30 April 2020

Two Months

30 June 2020

 

YE 31/10/2019

31 May 2020

Two Months

31 July 2020

 

YE 30/11/2019

30 June 2020

Two Months

31 August 2020

CP204

Mar’20 Instalment

15 April 2020

15 days

30 April 2020

 

Enerprises:

Form Types

Period

Statutory Due Date

Grace Period

Latest Due Date

Form B

YE 31/12/2019

30 June 2020

Two Months

31 August 2020

Form P

YE 31/12/2019

30 June 2020

Two Months

31 August 2020

Form M who doing business during year 2019

YE 31/12/2019

30 June 2020

Two Months

31 August 2020

CP500

Instalment 01/2020

30 March 2020

One Month

30 April 2020

 

Individuals:

Form Types

Period

Statutory Due Date

Grace Period

Latest Due Date

Form BE

YE 31/12/2019

30 April 2020

Two Months

30 June 2020

Form M who do not carry on business during year 2019

YE 31/12/2019

30 April 2020

Two Months

30 June 2020

 

Employers:

Form Types

Period

Statutory Due Date

Grace Period

Latest Due Date

Form E

YA 2019

31 March 2020

Two Months

31 May 2020

EPF

Mar’20 Salary

(Contribution Month Apr’20)

15 April 2020

-

15 April 2020

Socso

Mar’20 Salary

15 April 2020

-

15 April 2020

EIS

Mar’20 Salary

15 April 2020

-

15 April 2020

PCB

Mar’20 Salary

15 April 2020

15 days

30 April 2020

 

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Due to government's extension on the Movement Control Order, our Malaysia office will be continued closed between 01/04/2020 to 14/04/2020. We will try our best to have all correspondence via email & WhatsApp during this period and we sincerely apologies for any delay in replying.

Sorry for any inconvenience caused and thanks for your understanding.

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Key points from economic stimulus package 2020:

  1. Government will increase the special allowance from RM400 to RM600 per month since 1 April 2020 until the end of the outbreak.
  2. Government has agreed to extend a special allowance of RM200 a month to military, police, customs, immigration, civil defence members and RELA members who are directly involved in the implementation of the Movement Control Order. This allowance will be paid from 1 April 2020 until the end of the COVID-19 outbreak.
  3. Government will provide National Concerned Aid, a one-off cash allocation for individual including private workers, FELDA settlers, farmers, fishermen, small traders and all those belonging to the M40 and below groups
    1. RM1,600 - Households earning a monthly income of RM4,000 and below. Payment of RM1,000 will be paid in April 2020 and RM600 in May 2020.
    2. RM1,000 - Households earning over RM4,000 to RM8,000 will be paid in April 2020 of RM500 and the remaining RM500 in May.
    3. RM800 - Single individuals 21 years of age and older with a monthly income of RM2,000 and below. The RM500 payment will be paid in April 2020 and the remaining RM300 in May 2020
    4. RM500 - Single individuals 21 years and over who earn a monthly income of more than RM2,000 to RM4,000. A payment of RM250 will be made in April 2020 and the remaining RM250 in May
  4. RM200 One-off fund will be granted to students of higher education institutions by May 2020.
  5. The balance under Bantuan Sara Hidup (BSH) will be paid out on Jul’20
  6. Government had agreed to defer PTPTN repayment to all borrowers for 6 months (announced previously)
  7. Government has agreed to defer loan repayments to the borrowers of the Skills Development Fund Corporation or PTPK from 1 April 2020 to 30 September 2020
  8. MySalam expand the beneficiary group for the RM50 allowance per day (maximum 14 days) for those hospitalized B40 group because of COVID-19 infection to those B40 who are being quarantined (PUI).
  9. Rental for Projek Perumahan Rakyat (PPR) has been exempted for 6 months
  10. Government also agreed to grant 6 months rental exemption to those Government-owned premises, such as school canteen, child care centre, cafes, convenience stores and more.
  11. In the last economic stimulus package, the Government provide a 15% discount on the tourism sector electricity bill and 2% for the commercial, industrial, agricultural and household sectors in Peninsular Malaysia beginning April 1, 2020. Government and Tenaga Nasional Berhad (TNB) will give 50% discount to electricity usage below 200 kilowatts, 25% for use between 201 and 300 kilowatts and 15% for consumption 301 to 600 kilowatts. This discount will be effective for a period of six months beginning with the April 2020 bill. Meanwhile, the 2% discount as previously stated will continue enjoyed by all household users.
  12. Starting from 1 April 2020, internet charges will be waived until the movement control order period end.
  13. Government will provide one-off cash assistance of RM500 to civil servants in grades 56 and below including contract workers. Payment will be made by April 2020.
  14. The Government will also introduce the Wage Subsidy Program (Program Subsidi Upah) to help employers retain workers. Government will provide a wage of RM600 per month for three months. The program is aimed at employees earning less than RM4,000 and employers experiencing a 50% decrease in income since January 1, 2020. Employers must ensure that they do not dismiss employees or direct them to take unpaid leave for three months after the program is implemented. Also, employers are not allowed to deduct an employee's existing pay. The move is expected to benefit 3.3 million workers with an allocation of RM5.9 billion
  15. In the previous Economic Stimulus Package, the government announced that taxi drivers would receive a one-off payment of RM600 starting April 1, 2020. Government will expand the one-off allowance of RM500 to e-hailing drivers.
  16. Government has agreed to pay salaries on behalf of the contractors during the Movement Control Order period to those workers involved in service contracts such as cleaning services and food supply in schools even employees are absent from work.
  17. Government has also agreed to extend the service contract period for one month as a trade-off with the duration of the Movement Control Order
  18. Government and Bank Negara Malaysia will provide additional funding covering to assist Small and Medium Enterprises:
    1. Decreasing the interest rate for Special Assistance Fund from 3.75% to 3.5%
    2. Lower the threshold for Micro Credit Scheme from 1 year or operation to 6 months of operation. All micro entrepreneurs in all business sectors including taxi operators, bus and taxi operators, creative industries and online merchants can apply the loan with 2% interest rate by Bank Simpanan Nasional
  19. EPF will introduce the Employment Consultation Services program on April 15, 2020. This service includes options for deferment, restructuring and rescheduling of employer contributions.
  20. Exemption for the payment for Human Resources Development Fund (HRDF) levy for all sectors for a period of six months beginning April 2020.
  21. Government has also allowed the suspension of income tax instalment payments to all SMEs for a period of three months beginning April 1, 2020. [Previous economic stimulus package only allows tax instalments to businesses affected by the tourism sector for six months beginning April 1, 2020]
  22. For other affected sectors, they are allowed to amend the amount of income tax imposed during the third, sixth, and ninth instalments during the basic business period

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As per announced by LHDN, the due date for data submission as well as Monthly Tax Deduction (MTD or PCB)/ CP38 Payment for March 2020 remuneration will be extended to 30th of April 2020.