KUALA LUMPUR – A one-off special tax for companies earning RM100 million and more will be imposed under Budget 2022.
This tax for “high-income” companies is aimed to increase funds for those affected by the Covid-19 pandemic.
Tabling Budget 2022 in Parliament today, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the tax of 24% for the first RM100 million and 33% for the rest above that is to ensure that the public health system is more resilient to future threats.
“In the name of ‘Cukai Makmur’, companies with a taxable income of RM100 million will be subject to income tax at the rate of 24%, and the remaining taxable income will be subject to income tax at the rate of 33% for the year estimated 2022,” he said.
He also announced seven new steps to ensure that the government receives more funds, besides enhancing the taxation system.
The steps include increasing the stamp duty rate on contract notes from 0.1% to 0.15%, while abolishing the stamp duty limit of RM200 per contract note.
At the same time, listed stock trading brokerage activities are no longer subject to service tax.
Other steps include:
- Income tax levied on residents of Malaysia on income derived from foreign sources and received in Malaysia from January 1, 2022
- Sales tax levied on low-value goods from abroad sold by online merchants and delivered to consumers in Malaysia via air courier services
- Service tax levied on delivery services provided by service providers, including e-commerce platforms, except for food and beverage delivery services and logistics services
- The Special Voluntary Recognition Programme of the Royal Malaysian Customs Department introduced in phases with a penalty remission incentive of 100% for the first phase and a remission penalty of 50% for the second phase
- Tax remission considered for certain cases
- The Inland Revenue Board of Malaysia Tax Compliance Certificate as one of the prerequisites for companies to participate in government procurement from January 1, 2023
- The use of tax identification numbers to be implemented from 2022 to broaden the income tax base. – The Vibes, October 29, 2021
