Malaysia: Tax incentives included in economic package to support businesses (COVID-19)
Malaysia: Tax incentives included in economic package
A plan unveiled 17 March 2021 is intended to offer tax and other incentives as support for businesses affected by the coronavirus (COVID-19) pandemic.
In addition to waiving certain fees for a 12-month period and providing wage subsidies for a three-month period, the “PEMERKASA” package focuses on 20 strategic initiatives and includes the following tax incentives:
- Regarding income tax—
- Additional tax deduction for companies participating in Safe@Work initiative
- Further tax deduction with regard to COVID-19 screening expenses incurred by employers
- Extended tax incentives for tour operators
- Deferment of tax instalment payments for tourism industry
- Income tax relief on domestic travel
- Regarding indirect tax—
- Extended exemptions from service tax and tourism tax for hotels and other similar establishments
- Exemption from entertainments tax (duty)
- Excise-tax exemption for motorcycles assembled domestically
Read a March 2021 report [PDF 390 KB] prepared by the KPMG member firm in Malaysia
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