Business

Budget 2023: SMEs get full stamp duty exemption, tax cuts

First RM100,000 earned by such enterprises to only be calculated at 17%, instead of current 15%

Updated 3 years ago · Published on 07 Oct 2022 6:06PM

Budget 2023: SMEs get full stamp duty exemption, tax cuts
The Indian Community Entrepreneur Development Scheme will see an injection of RM25 million along with an RM100 million allocation to the Malaysian Indian Transformation Unit under Budget 2023. – The Vibes file pic, October 7, 2022 

by Qistina Nadia Dzulqarnain

KUALA LUMPUR – The government intends to enforce a full stamp duty exemption for loan restructuring and rescheduling agreements up to 2024. 

The matter was announced by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz during the tabling of Budget 2023 today, which also included tax cuts for small and medium enterprises (SMEs). 

“As part of its financing initiatives, the government will be extending a 100% stamp duty exemption on loan restructuring and rescheduling agreements until 2024.

“Besides that, the first RM100,000 earned by an SME will only be taxed at 17% instead of the current 15%,” Tengku Zafrul said, adding that the move is expected to allow around 150,000 relevant taxpayers to save RM2,000. 

While Chinese SME traders will be addressed under a RM200 million financing scheme, the Indian Community Entrepreneur Development Scheme will see an injection of RM25 million along with an RM100 million allocation to the Malaysian Indian Transformation Unit (Mitra). 

Mitra, which has been embroiled in graft allegations, is currently placed under the National Unity Ministry. 

However, Prime Minister Datuk Seri Ismail Sabri Yaakob has since stated that the unit will be returned to the Prime Minister’s Department. 

About 1 million registered SMEs and taxi drivers are also set to receive a one-off grant worth RM1,000 under a RM1 billion allocation aimed at assisting small businesses. 

The government also plans to channel RM45 billion into the Semarak Niaga Keluarga Malaysia programme – a slight increase from the RM40 billion allotment last year. – The Vibes, October 7, 2022 

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