Tax overhaul under study says Zafrul
KUALA LUMPUR: Existing tax incentives that are due to end this year will be extended until 2022 as the government undertakes a comprehensive study of the existing tax incentive structure, said Finance Minister Tengku Zafrul Aziz.
“A comprehensive study of the existing tax incentive structure is under way to provide a competitive, transparent and more attractive tax incentive framework.
“To provide space for the study to be completed, the existing tax incentives due to end this year will be extended until 2022,” he said in his budget speech today.
The budget provides for an additional year for special tax rates on selected manufacturing companies that relocate their operations to Malaysia and bring in new investments.
In addition, the scope of these tax incentives would be widened to companies in selected services sectors that had significant multiplier effect by providing an income tax rate of zero per cent to 10% for a period of 10 years, he said.
Tengku Zafrul said the extension also covered tax incentives for maintenance, repair and overhaul activities for aerospace, building and repair of ships, Bionexus status and economic corridor developments.
In a response to the budget, the Federation of Malaysian Manufacturers has said its wishlist was not fully met, particularly its call for a waiver of corporate and individual income taxes for the 2020 and 2021 assessment years.
FMM had also called for a more competitive tax regime for both corporate and tax rate. The 1% cut in personal income tax for selected tax payers could have been extended to the other income brackets as well, it said in a statement tonight. - FMT
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