The tabling of Budget 2019 last Nobember, saw a slew of new taxes proposed that will gradually be introduced this year. SMEs are believed to be the winners here as various taxes and initiatives announced are meant to reduce their burden and in the long run benefit from it by taking advantage of not only the new tax system but also the grants and funds offered by the Government.
According to KPMG Tax Services Sdn Bhd executive director, Corporate Tax, Neoh Beng Guan, one key change that is directly beneficial to the SMEs in 2019 is the reduction of corporate tax rate from 18% to 17% on the first RM500,000 of chargeable income.
“The lower tax rate would lift some of the financial burden off the shoulders of SMEs. With the retention of more income to the SMEs and potentially extra cash flow, SMEs could utilize the extra income to invest in digitalization, automation and modernization to move forward to Industry 4.0 and embrace digital transformation,” he said.