Business tax cuts available for MSMEs to alleviate financial struggles

KUALA LUMPUR – Utilising business tax cuts would alleviate financial struggles particularly for companies recovering from the effects of COVID-19.

Datuk Seri Tengku Zafrul Aziz, the Finance Minister, has stated that Budget 2022 has allocations for such measures for micro, small and medium enterprises (MSMEs) that include business tax reductions and delayed payment methods of up to six months, until June 30, 2022.

These initiatives can be found in the 92nd People’s Financial Report, he said.

Furthermore, he explained that there are additional tax breaks of up to RM300,000 available for renovations that comply with normal operating practises, such as increasing air circulation at the premises.

Additionally, entrepreneurs could also be eligible for tax breaks of up to RM50,000 for the renting of housing premises for workers, deferred income tax installment payments, revisions to tax assessments, as well as tax breaks for rental reduction and brought-forward accumulated losses.

Tengku Zafrul also mentioned that the government may announce other initiatives in the coming weeks specifically for the public, businesses and country’s economy.

Apart from that, there’s the i-Biaya housing loan initiative that was recently launched in efforts to enable people in purchasing homes. This initiative is particularly meant for those without fixed income or monthly salary payment slips.

“The government is aware of this situation and we are working in line with the National Housing Policy that emphasises on home ownership for the lower income group,” he added.

There is also the e-Pemula initiative that is intended to lighten financial burden for the local SMEs through encouraging cashless transactions.

“The e-Pemula’s purpose is to help the local businesses and promote online purchases for Malaysians to support the country’s economic recovery,” the finance minister added.

The disbursement of e-Pemula for the youths started last week on four different platforms namely GrabPay, ShopeePay, BigPay and Touch and Go.

Join our Telegram group for the latest updates!