On 31 May 2021, our honorable Prime Minister, Tan Sri Dato’ Muhyiddin Yassin, unveiled the PEMERKASA+ package worth RM40 billion. The PEMERKASA+ package focuses on 12 strategic initiatives to enhance public healthcare capacity, continue the welfare agenda for the people and to support business continuity.
Amongst others, the business initiatives include:
- Automatic approval of loan moratorium for 3 months or a 50% reduction in loan repayment for 6 months given to the B40 group, people who have lost their jobs, micro-entrepreneurs and small and medium enterprises ("SMEs") that are not permitted to operate during the Movement Control Order period, effective from June 2021;
- Reintroduction of extension of time for the submission of financial statements, conduct of annual meetings for public listed companies and moratorium on fines for late submission of statutory documents to the Companies Commission of Malaysia;
- Waiver of late charges for renewal of business licenses until 31 December 2021 for micro-SMEs, sole proprietorships and partnerships;
- Improvement of the Temporary Measures For Reducing the Impact of COVID-19 Act 2020 to assist affected businesses and individuals and extension of the effective period of the protection relating to inability to perform contractual obligations to 31 December 2021;
- Extension of Wage Subsidy Programme under PERKESO for 1 month for affected sectors, capped at 500 employees per application;
- Exemption of Human Resources Development Fund levy for employers registered with Human Resource Development Corporation for 1 month in June 2021; and
- Extension of electricity bill discounts to affected sectors and continuing 10% electricity discounts for hotel operators, travel and tour agencies, shopping premises and complexes, convention centres, theme parks and local airline offices for another 3 months from July to September 2021.
Apart from the above non-tax measures, we also summarise below the highlights of the proposed key tax measures for your attention.
In addition, as one of the efforts to reduce the cash flow burden on businesses, the Malaysian Inland Revenue Board ("MIRB") will consider appeals on penalties and the deferment of payment of penalties to 2022. The MIRB will also provide rescheduling of payment of outstanding taxes for affected taxpayers and businesses.
The text of the speech can be accessed via the above link.
Should you have any questions or require further clarification, please do not hesitate to contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organisation.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Tai Lai Kok
Head of Tax