On 2 November 2018, the Malaysian Finance Minister presented his budget proposals for 2019.
Summary of the main corporate tax proposals:
- Introduction of a Special Voluntary Disclosure Program for taxpayers to voluntarily declare any unreported income during a limited period as follows- 10% for disclosure made between 3 November 2018 and 31 March 2019 and 15% for disclosure made between 1 April 2019 and 30 June 2019. The government proposes to impose penalties ranging from 80% to 300%, following the current tax rules.
- The current tax exemption for interest received on wholesale money market funds will cease with effect from 1 January 2019
- Income tax deductions for contributions made to any social enterprise subject to a maximum of 10% of aggregate income of a company or 7% of aggregate income for a person other than a company
- Lowering the corporation tax rate for small and medium-sized enterprises (SMEs) to taxable income of up to 500,000 RM to 17% of 18% effective from YA 2019
- Employers employing over-60s receive a double deduction. A double deduction is also granted for the employment of ex-convicts. The monthly remuneration should not exceed RM4,000 per employee in both instances.
- Companies that help their employees settle their Perbadanan Tabung Pendidikan Tinggi Nasional Loans (PTPTN) in calendar year 2019 will receive a special tax deduction.
