What's in for tax in the Government's Economic Recovery Plan?
So, the Economic Recovery Plan that we were all looking forward to is out. Let's take a look at some of the incentives announced under Penjana.
- For the period from 1st July 2020 up to 30th September 2020, a 50% remission of penalty will be given for late payment of sales and service tax due and payable.
- An extension of special deduction equivalent to 30% of rental reduction for SMEs up to 30th September 2020.
- A special deduction for renovation and refurbishment business premises is extended until 31st December 2021.
- An extension of accelerated capital allowance on eligible capital expenses including ICT equipment up to 31st December 2021.
- For the period between 1st July 2020 to 31st December 2021, an income tax rebate up to RM20,000 per year for 3 years of assessment will be given to newly established SME.
- Extension of period of deferment of tax installment payment for tourism industry is extended to 31 December 2020.
- Extension of service tax exemption for hotels up to 30th June 2021
- Extension of tourism tax exemption from 1st July 2020 to 30th June 2021
- For the period between 1st July 2020 to 30th June 2021, stamp duty exemption will be given to SMEs on any instruments executed for Mergers and Acquisitions (M&As)
- Income tax exemption of up to RM 5,000 can be claimed by employees who receive a handphone, notebook and tablet from their employer for working from home
- Increase of income tax relief for parents from RM 2,000 to RM 3,000 on childcare service expenses
- eVouchers of RM 800 will be given per household for subsidy of childcare expenses for mobile childcare services
- Special individual income tax relief of up to RM 2,500 on the purchase of handphone, notebook and tablet
- Income tax relief for domestic travel of up to RM 1,000
- Stamp duty exemption for name transfer letters and financing agreements for properties under Home Ownership Campaign (HOC)
- RPGT exemption on disposal of residential homes from 1st June 2020 to 31st December 2021.
- 100% sales tax exemption on locally assemble cars and 50% on imported cars.