In brief, tax measures proposed in the economic stimulus package concerning income tax:

• Deferral of tax installment payments for tourism sector, as relief related to coronavirus situation
• Revision of income tax estimates
• Special individual (personal) income tax relief on domestic travel
• Accelerated capital allowance for machinery and equipment including information and communications technology equipment
• Special tax deduction for the establishment of regional offices by international shipping companies
• Deduction and capital allowance provisions on personal protective equipment, provided to employees

Regarding the indirect tax measures in the economic stimulus package are the following proposals:

• A 100% stamp tax (duty) exemption on loan restructuring and rescheduling arrangements
• Service tax exemption for hotels and similar establishments
• Import customs duty and sale tax exemptions on equipment and machinery for port operators
• Expansion of value added tax (VAT) relief for activities conducted in licensed manufacturing warehouses and industrial zones
• Review of the conditions for duty-free goods purchased by persons entering Malaysia

Read a February 2020 report [PDF 573 KB] prepared by the KPMG member firm in Malaysia