To Our Valued Clients
On 31st May 2021, the Government has announced the PEMERKASA Plus Stimulus Package ["PEMERKASA Plus"] worth RM40 billion with the following three (3) main objectives:-
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Enhancing the public health capacity; |
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Continuing the Prihatin Rakyat agenda; and |
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Supporting business continuity. |
Salient points of the PEMERKASA Plus are as summarised below:-
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Appeal on Imposition of Penalties and Deferment for Payment of Penalties / Rescheduling of Payment of Outstanding Taxes |
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To reduce the burden on businesses, the Inland Revenue Board may consider the following:- |
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Appeal on imposition of penalties and deferment of payment of penalties imposed under the Income Tax Act 1967, Real Property Gains Tax Act 1976 and Stamp Act 1949 to year 2022; and |
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Rescheduling of payment of outstanding taxes for taxpayers and businesses affected as a result of the implementation of the Movement Control Order ["MCO"]. |
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| ii. |
Extension of Wage Subsidy Programme ["WSP"] 3.0 |
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The WSP was first introduced under the Prihatin Rakyat Economic Stimulus Package to provide financial assistance to employers for local employees earning RM4,000 or less |
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Under Budget 2021, the WSP was further extended with a more targeted approach specifically for the tourism and retail sectors. The subsidy is at the rate of RM600 per employee for workers earning RM4,000 or less and limited to 500 eligible employees |
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Under the PERMAI Stimulus Package, it was proposed that all employers operating in the MCO states will be eligible to apply for the subsidy of RM600 per employee irrespective of sector, up to maximum of 500 eligible employees, for a period of one (1) month under WSP 3.0 |
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Under the PEMERKASA Stimulus Package, the WSP 3.0 was extended by another 3 months, focusing on tourism, wholesale and retail traders, as well as other businesses (e.g. gymnasiums and spas) which were unable to operate during the MCO periods |
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It is now proposed that the WSP 3.0 be further extended by another month for all affected economic sectors, with a limit of 500 employees per application |
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| iii. |
Extension of Special Deduction on Rental Reduction |
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A special deduction was granted to landlords offering reduction of rental on business premises to tenants who are Small and Medium Enterprises ["SME"] (as defined under the SME Corporation) of at least 30% from the original rate for the period from April 2020 to June 2021 |
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Under the PERMAI Stimulus Package, the above was expanded to include rental reduction given to non-SME tenants for the period from January 2021 to June 2021 |
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It is now proposed that the above special deduction on rental reduction given to SME and non-SME tenants be extended until December 2021 |
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| iv. |
Extension of Stamp Duty Exemption for Home Ownership Campaign |
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Under the PENJANA Stimulus Package, stamp duty exemption was given on the instrument of transfer (limited to the first RM1 million of the value of property) and loan agreement (100% exemption) for the purchase of residential properties priced between RM300,000 to RM2.5 million by Malaysian citizens under the Home Ownership Campaign on the conditions that:- |
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at least 10% discount is provided by the developer; and |
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the sale and purchase agreement must be signed between 1st June 2020 and 31st May 2021 |
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It is now proposed that the above stamp duty exemption be extended until 31st December 2021 |
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| v. |
Extension of Sales Tax Exemption on Passenger Vehicles |
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Under the PENJANA Stimulus Package, the following sales tax exemptions are given until 31st December 2020:- |
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100% sales tax exemption on locally assembled cars |
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50% sales tax exemption on imported cars |
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The above sales tax exemptions were extended by another 6 months, until 30th June 2021 by way of a ministerial exemption via letter dated 29th December 2020 |
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It is now proposed that the above exemptions be further extended until 31st December 2021 |
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| vi. |
HRDF Levy Exemption |
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Under the PEMERKASA Stimulus Package, exemption from payment of Human Resource Development Fund ["HRDF"] levy was granted to companies in tourism and retail sectors until June 2021 |
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It is now proposed that all employers registered with Pembangunan Sumber Manusia Berhad be given exemption from payment of HRDF levy for the month of June 2021 |
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Moratorium on Loan Repayment |
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All B40 group and those who lost their jobs as well as SME not allowed to operate during the MCO are given the option of:- |
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automatic approval of bank loan moratorium for three (3) months; or |
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50% reduction in loan repayment for 6 months |
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The above will commence in June 2021 |
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For further information, kindly refer to the text of the speech for the PEMERKASA Plus Stimulus Package (in Bahasa Malaysia only).
Please do not hesitate to contact us if you need any clarification on the foregoing.