The RM35 billion National Economic Recovery Plan (PENJANA) is aimed at protecting jobs, empowering businesses especially the small and medium enterprises (SMEs) and ensuring Malaysia gets its fair share of foreign investments as companies seek to relocate a part of their business arising from the impact of COVID-19, said a tax expert.
Deloitte Malaysia tax leader Sim Kwang Gek said the extension of the Wage Subsidy Programme (WSP) for another three months would further ease the financial burden faced by businesses and provide job security to affected employees.
The wage subsidy is fixed at RM600 per employee for a maximum of 200 employees, and employers who are not allowed to operate during the conditional movement control order (CMCO) can apply for the programme.
"It is uncertain at this juncture if the conditions imposed under the existing WSP will continue to apply," she said, adding that one of the conditions was only employees earning salaries below RM4,000 a month was eligible.
"I am hopeful that this requirement can be removed as SMEs do employ people above such income threshold. Perhaps, the wage subsidy could apply to the first RM4,000 paid to the employees instead of being restricted to employees earning a monthly salary of RM4,000 or less," Sim told Bernama today.
On attracting foreign direct investments, she said the government had announced generous tax incentives to attract foreign companies to relocate their businesses into Malaysia.
It includes a tax holiday of 10 or 15 years for new foreign investments in the manufacturing sector -- 10 years for capital investments of RM300 million to RM500 million and 15 years for capital investments of more than RM500 million.
Additionally, existing companies in Malaysia will receive a 100 per cent Investment Tax Allowance for three years for relocating their overseas facilities into Malaysia with capital investments above RM300 million.
Sim said these measures were crucial and timely to encourage foreign investments in the current economic climate, where tax costs could be a key consideration in selecting a location for investment.
"The condition to require the new investments to commence operations within a year from the approval date and putting a three-year cap on the time frame for capital investment is a good move as this will accelerate the approved projects implementation," said Sim.
Another good initiative, she said, was the government's commitment to issue manufacturing licences for non-sensitive industries in two working days as it would enhance Malaysia's competitiveness in doing business.
Malaysia is currently ranked 12th with 81.50 points among 190 global economies in the World Bank Doing Business 2020 Report, recording an improvement from 15th position in the previous year.
Meanwhile, to spur the setting up of new businesses, an income tax rebate of up to RM20,000 per year for three years of assessment will be given for newly established SMEs between July 1, 2020, and Dec 31, 2021.
"Assuming that the income tax rebate is deducted from the final tax payable of the SME, this provides a tax savings of RM60,000 for three years.
While the focus is understandably on SMEs, she said the current crisis had also forced larger companies to restructure to be more agile, efficient and competitive; in this regard, the stamp duty exemption should apply to all businesses and not be limited to SMEs.
Sim said the revival of the Home Ownership Campaign (HOC) should bring cheer to property developers as it would ease properties oversupply, stimulate the property sector and spur buying sentiment.
The tax incentives are similar to the previous HOC where a stamp duty exemption is given on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 and RM2.5 million, subject to at least 10 per cent discounts provided by the developer.
The exemption on the transfer instrument transfer is limited to the first RM1 million of the home price while full stamp duty exemption is given on loan agreement, stipulated in sale and purchase agreements signed between June 1, 2020, and May 31, 2021.
"However, It is unclear if this incentive applies to all purchasers of properties or are limited to Malaysian citizens, which was the condition set under the previous HOC," said Sim.
Meanwhile, individual taxpayers who intend to dispose of their residential homes would enjoy RPGT exemption (limited to the disposal of three units of residential home per individual) from June 1, 2020, to Dec 31, 2021.
"While this measure provides some tax savings for individual taxpayers, its impact on stimulating the property sector is unclear due to the downward prices in the secondary property market," said Sim.
She lauded the proposal to set up an investment fund called Dana Penjana Nasional to encourage the digitalisation efforts by Malaysian businesses, as COVID-19 had accelerated the need for businesses to embrace digitalisation.
The targeted fund size is RM1.2 billion with 50 per cent funded by international investors.
"From a tax perspective, it is hoped that the Dana Penjana Nasional will equally benefit from existing venture capital tax incentives and investment fund incentives, to ensure both investors and investees enjoy tax efficient funding," said Sim.
On facilitating the implementation of working from home, employees will get to enjoy a tax exemption of up to RM5,000 on handphones, notebooks and tablets provided by their employers, effective July 1, 2020.
In addition, there is also a special individual income tax relief of up to RM2,500 on the purchase of handphones, notebooks and tablets effective from June 1, 2020.
"This is on top of the RM2,500 existing lifestyle tax relief that is applicable for similar purchases as well as other items such as reading materials, sports equipment and broadband subscriptions. It should encourage consumer spending on these items," she said.
Meanwhile, the extension of up to Sept 30, 2020, for the special tax deduction equivalent to 30 per cent reduction in rental for SMEs, was pivotal, Sim said, noting that rental costs formed a significant part of operating expenditure for most businesses.
"Thus I believe that this special tax deduction should be made available to all businesses.
"Alternatively, for businesses that do not qualify for the special tax deduction, a double tax deduction could be given to the tenants on the rental expense incurred as the cash savings can be channeled towards business continuity and staff retention," said Sim.
-- BERNAMA
Bernama
Sat Jun 06 2020
![Deloitte: PENJANA protects jobs, empowers SMEs and attracts FDIs Deloitte: PENJANA protects jobs, empowers SMEs and attracts FDIs](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2020-02/41582288227_TBAUTOMOTIVE.jpg)
The extension of the Wage Subsidy Programme (WSP) for another three months would further ease the financial burden faced by businesses. - FILEpic
![Golongan belia pemacu penting bentuk masa depan industri pembuatan Malaysia - FMM Golongan belia pemacu penting bentuk masa depan industri pembuatan Malaysia - FMM](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/41715247870_SohThianLaijpg.jpg)
Golongan belia pemacu penting bentuk masa depan industri pembuatan Malaysia - FMM
Pemimpin perniagaan dan usahawan daripada golongan belia merupakan pemacu penting yang akan membentuk masa depan industri pembuatan Malaysia, kata Presiden Persekutuan Pekilang-Pekilang Malaysia.
AWANI Tonight: 16 July 2024
#AWANITonight with @Hafiz_Marzukhi
1. Govt mulls amending Penal Code to deal with cyberbullying
2. England's Southgate resigns after Euro 2024 Final defeat
#AWANIEnglish #AWANINews
1. Govt mulls amending Penal Code to deal with cyberbullying
2. England's Southgate resigns after Euro 2024 Final defeat
#AWANIEnglish #AWANINews
![Empat individu termasuk pasangan pempengaruh bebas tahanan reman Empat individu termasuk pasangan pempengaruh bebas tahanan reman](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/41716613114_TBsprm.jpg)
Empat individu termasuk pasangan pempengaruh bebas tahanan reman
Kesemua individu juga perlu hadir ke pejabat Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) sebulan sekali untuk melaporkan diri.
![KPT alu-alukan syor PAC guna garis panduan pelaburan universiti awam untuk anak syarikat KPT alu-alukan syor PAC guna garis panduan pelaburan universiti awam untuk anak syarikat](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81719822088_ZambryAbdKadir.jpg)
KPT alu-alukan syor PAC guna garis panduan pelaburan universiti awam untuk anak syarikat
KPT mengalu-alukan cadangan PAC berhubung pelaksanaan dan pemakaian Garis Panduan Pelaburan dan Pembiayaan oleh Universiti Awam 2024, kepada anak-anak syarikat di bawah seliaan kementerian itu.
![SUKMA 2024: Sepak takraw wanita mungkin digugurkan SUKMA 2024: Sepak takraw wanita mungkin digugurkan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61720679430_AbdulKarimRahman.jpg)
SUKMA 2024: Sepak takraw wanita mungkin digugurkan
Sepak takraw wanita berpasukan berkemungkinan akan digugurkan daripada senarai acara temasya Sukan Malaysia (SUKMA) 2024 berikutan jumlah penyertaan kurang daripada jumlah minimum yang ditetapkan.
10 Berita Pilihan - (16 Julai 2024)
Antara pelbagai berita dalam dan luar negara yang disiarkan di Astro AWANI, berikut adalah yang paling menjadi tumpuan sepanjang hari ini.
![Enam rakyat Vietnam ditemukan maut di sebuah hotel di Bangkok Enam rakyat Vietnam ditemukan maut di sebuah hotel di Bangkok](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-12/41702437730_maut.jpg)
Enam rakyat Vietnam ditemukan maut di sebuah hotel di Bangkok
Enam orang ditemukan maut di sebuah hotel di Bangkok, Thailand pada Selasa laporan media tempatan yang memetik polis Bangkok.
AWANI 7:45 [16/07/2024] - Suspek dibawa ke lokasi | Selamat tinggal rakyat Malaysia | Harimau Malaya hilang taring?
- Polis sahkan suspek bunuh Kartini anggota polis.
- Pan-Gon enggan dedah punca letak jawatan.
- Faisal Halim sedih mentor Pan-Gon undur diri.
- Pakai reben putih di Parlimen, tak salah.
- Pan-Gon enggan dedah punca letak jawatan.
- Faisal Halim sedih mentor Pan-Gon undur diri.
- Pakai reben putih di Parlimen, tak salah.
![Isteri calon gandingan Trump letak jawatan di firma guaman Isteri calon gandingan Trump letak jawatan di firma guaman](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/41721139141_TBJDUSHA.jpg)
Isteri calon gandingan Trump letak jawatan di firma guaman
Usha Vance, isteri kepada Senator J.D. Vance yang dipilih sebagai calon gandingan bekas presiden Amerika Syarikat (AS) Donald Trump awal minggu ini, telah meletakkan jawatannya di sebuah firma guaman,
![Najib fail permohonan di mahkamah rayuan cabar Titah Adendum Najib fail permohonan di mahkamah rayuan cabar Titah Adendum](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-05/71683779541_TBNAJIBRAZAK.jpg)
Najib fail permohonan di mahkamah rayuan cabar Titah Adendum
Berdasarkan sistem e-filing mahkamah, rayuan itu telah ditetapkan untuk pengurusan kes pada 7 Oktober ini.
![Menteri Palestin mahu AS desak Israel buka lintasan Rafah Menteri Palestin mahu AS desak Israel buka lintasan Rafah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/51717033376_MajedAbuRamadan.jpg)
Menteri Palestin mahu AS desak Israel buka lintasan Rafah
Majed Abu Ramadan berkata tidak ada petunjuk bahawa pihak berkuasa Israel akan berbuat perkara berkenaan dalam masa terdekat.
![Pesawat turun mendadak kurang dari 10 saat - Penumpang SIA Pesawat turun mendadak kurang dari 10 saat - Penumpang SIA](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/81716342889_TBSIADIES.jpg)
Pesawat turun mendadak kurang dari 10 saat - Penumpang SIA
Salah sorang penumpang pesawat penerbangan Singapore Airlines (SIA) yang mengalami keadaan gelora udara (turbulent) kuat, Dzafran Azmir memberitahu kejadian berlaku dengan sangat pantas.
![Microsoft minta pekerja mereka di China untuk berpindah negara Microsoft minta pekerja mereka di China untuk berpindah negara](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/61716025950_ChinaUSA.jpg)
Microsoft minta pekerja mereka di China untuk berpindah negara
Antara pilihan yang diberikan termasuk AS, Ireland, Australia, dan New Zealand.
![Mayat lelaki ditemui di sempadan Mexico- AS, cetus ketakutan migran lain Mayat lelaki ditemui di sempadan Mexico- AS, cetus ketakutan migran lain](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/41715993230_tbdeathofmigrant.jpg)
Mayat lelaki ditemui di sempadan Mexico- AS, cetus ketakutan migran lain
Pejabat pendakwa raya di utara Mexico menyiasat kematian seorang migran di sebuah lokasi bersempadan dengan Amerika Syarikat (AS) pada Jumaat.
![Baj langgar jambatan di AS akibatkan tumpahan minyak Baj langgar jambatan di AS akibatkan tumpahan minyak](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/71715840247_barge.jpg)
Baj langgar jambatan di AS akibatkan tumpahan minyak
Sebuah baj melanggar jambatan di Galveston, bandar di Pantai Teluk di negeri Texas Amerika Syarikat (AS) pada Rabu menyebabkan tumpahan minyak ke teluk dan sebahagian jambatan itu runtuh.
![Tentera AS edar gambar jeti maritim Gaza siap dibina Tentera AS edar gambar jeti maritim Gaza siap dibina](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-04/51714445539_tbhumanitarianaid.jpg)
Tentera AS edar gambar jeti maritim Gaza siap dibina
Beberapa gambar pembinaan jeti maritim oleh tentera Amerika Syarikat (AS) di Gaza untuk menghantar bantuan kemanusiaan telah diedarkan Komando Pusat AS pada Isnin.
![Pemindahan pertama buah pinggang babi beri sinar kepada pesakit Pemindahan pertama buah pinggang babi beri sinar kepada pesakit](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-03/81711066991_Firstpigtohumank.jpg)
Pemindahan pertama buah pinggang babi beri sinar kepada pesakit
Kejayaan prosedur pembedahan pemindahan buah pinggang babi ke manusia yang pertama di Amerika Syarikat (AS) disifatkan sebagai kemajuan besar di negara itu.
![Ahli Parlimen AS setuju elak penutupan kerajaan sebelum tarikh akhir Ahli Parlimen AS setuju elak penutupan kerajaan sebelum tarikh akhir](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-01/81705211011_TBCOVIDRELIEFPLAN.jpg)
Ahli Parlimen AS setuju elak penutupan kerajaan sebelum tarikh akhir
Pemimpin Kongres AS telah mencapai persetujuan untuk menghalang penutupan sebahagian kerajaan persekutuan yang dijadualkan pada tengah malam Jumaat ini, kata Ahli Parlimen pada Rabu.
![Rusia mahu UNSC bincang serangan AS ke atas Iraq, Syria Rusia mahu UNSC bincang serangan AS ke atas Iraq, Syria](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-02/61707022827_TBairstrike.jpg)
Rusia mahu UNSC bincang serangan AS ke atas Iraq, Syria
Rusia pada Sabtu mengecam serangan Amerika Syarikat (AS) ke atas Iraq dan Syria serta meminta mesyuarat Majlis Keselamatan Pertubuhan Bangsa-Bangsa (UNSC) untuk membincangkan isu berkenaan.
![Kumpulan Pro-Palestin berhimpun di Chicago, Dewan Bandaraya gesa gencatan senjata Kumpulan Pro-Palestin berhimpun di Chicago, Dewan Bandaraya gesa gencatan senjata](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-02/61706758896_Chicagoweekendprot.jpg)
Kumpulan Pro-Palestin berhimpun di Chicago, Dewan Bandaraya gesa gencatan senjata
Kumpulan Pro-Palestin berhimpun di Dewan Bandaraya Chicago, Amerika Syarikat untuk menyatakan protes terhadap serangan Israel yang berterusan di Gaza pada Rabu.