Malaysia: Malaysia National Budget 2022

Some important highlights are as follows: 

• A special one-off tax to be imposed on non-Micro, Small and Medium Enterprises (non-MSMEs) companies which generate high profits during the period of the pandemic Covid-19 as follows:
• chargeable income up to the first RM100 million is taxed at 24%; and 
• the remaining chargeable income is taxed at 33% 
• Foreign-sourced income of Malaysian tax residents which is received in Malaysia will be taxed 
• Unutilised business losses to be carried forward for 10 consecutive YAs 
• Extension of tax rebate of up to RM20,000 for establishment of new MSMEs entities 
• Special Reinvestment Allowance (RA) to be extended until YA 2024 
• MSMEs be granted deferment of income tax instalment payments for a period of six months until 30 June 2022
• Tax deduction for self-funded booster vaccines 
• Withholding tax on payments made to resident agents, dealers or distributors
• Income tax exemption for Social Enterprises 
• Tax incentive for Digital Ecosystem Acceleration Scheme
• Special tax deduction on rental discount to tenants be extended for another 6 months (January 2022 until June 2022)
• Deduction for renovation and refurbishment expenses be extended to include expenditure incurred until 31 December 2022 
• Extension of special income tax rate of 15% to nonMalaysian citizen individuals holding key positions in companies that make new strategic investments 
• Income tax exemption on prize money from e-sports tournaments 
• Imposition of service tax on delivery services including e-commerce platforms (excluding food and beverage delivery services and logistic services) 
• Extension of tourism tax exemption for one year to 31 December 2022 
• A Special Voluntary Disclosure Program (SVDP) for indirect taxes to be introduced in phases with penalty remission incentives of 100% in Phase 1 and 50% in Phase 2 
• Real Property Gains Tax (RPGT) rate for disposals made by citizens, permanent residents, and persons other than companies in the 6th and subsequent years after acquisition to be reduced from 5% to 0% 

Under the various assistance and funds supported by the Government, let us embrace 2022 with the right mind and attitude for a safe and successful year!