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Budget 2020 and its Tax Implication on Business & Individual, BN-RS073…
Budget 2020 and its Tax Implication on Business & Individual
Business
Tax Deductions
Corporate expenses (total up tp RM15,000)
Secretarial Fee
Up to RM5,000
Tax Filing Fee
Up to RM10,000
Listing fees of Bursa Malaysia Tax Deductions
Technology-based Companies and SMEs
Access, Certainty, Efficiency (ACE) Market
Up to RM 1.5 million on
Professional Fees
Underwriting, Placement and Brokerage Fees
Fees to Authorities
Leading Entrepreneur Accelerator Platform
(LEAP) Market
Contribution for Digital Social Responsibility
PTPTN Deduction
Eligible for employer until 2021
Sponsorship
Malaysian arts, cultural, and heritage activities
Before: RM 700,000
After: RM1 million
Capital Allowances
Small Value Asset
Per Asset
Before: RM 1300
After: RM 2000
Total Asset
Before: RM 13000
After: RM 20000
Purchase of Tourism Vehicles
IA:20%, AA: 40%
Tax Incentive
Structured Internship Programme
Incentive be Expanded to All-Academic Fields
Extended for 2 years until 2021
Participating in National Dual
Training Scheme
Tax Incentive be Extended for 2 years
Electrical and Electronic (E&E) companies
Investment Tax Allowance
Up to 10 Years Income Tax Exemption
Green Technology Incentive
(a) Green Investment Tax Allowance (GITA)
Investment Tax Allowance (ITA) is extended for 3 years
(b) Green Income Tax Exemption (GITE)
(i) Income Tax Exemption is extended for 3 years
Before: Exemption of 100%, After: 70%
(ii) Solar Leasing Activities - Exemption 70% up to 10 years
Tourism Business
Full entertainment duty exemption
For admission tickets
Tax exemption of 100% statutory income
At least 500 foreign participants a year (Conferences)
Tax exemption of 50% statutory income
Attract foreign visitors
Culture activities
International sports
Recreational competitions
Tax Treatment
Small-Medium Enterprise (SME)
17% tax rate
Before: First RM 500,000
After: First RM 600,000
Individual
Women Returning To Work
Tax
Incentive
Individual income tax exemption
Maximum 12
Consecutive Months
"TalentCorp" from 1 January 2020 to 31 December 2023
Purpose: Increase Female
Participation in
the Workforce & financing independence
Extended for
4 years
A RM500 monthly incentive for two years for women aged 30 to 50
A RM300 hiring incentive each month for employers
Resident Individuals
New Income Tax Band
Taxation on 1st RM 2 million Chargeable Income
Remain at 0% to 28%
Taxation on Chargeable Income > RM 2 Million
Before: 28%
After: 30%
Impact Approximately 2000 Top Income Earners
Purpose: Increase Government Revenue
Relief
Medical expenses
Before: For serious diseases only
After: Include cost of fertility treatment
Childcare and Kindergarten
Before: RM1000
After: RM2000
Non-resident Individuals
Before: 28%
After: 30%
Homeowner
RPGT
MV of Property
as at 1 Jan 2013 as Acquisition Price
Lower RPGT
Covid-19 outbreak:
exempted from paying the 5% (or higher) RPGT
Disposal from 1 June 2020 and 31 December 2021
disposal of three units of residential homes per individual
Stamp Duty Exemption
Rent-to-own (RTO)
Scheme
first residential home priced up to RM500,000
50% Remission
Transfer between
Parents and Children
has been Tweaked
Only Applicable to Citizens
Donation
charitable,sports activities and national interest
Before: 7%
After: 10%
General
Penalty
Before: 10% for first 60 days, 5% after 60 days
After: 10% only
Right of appeal
Before: Within 30 days of the service of notice
After: Allow taxpayers 7 years to ask for an extension of time to appeal
