Business

Budget 2022: one-off windfall tax imposed on ‘high-income’ firms

Companies earning at least RM100 mil to pay 24%, 33% for those above that

Updated 4 years ago · Published on 29 Oct 2021 7:40PM

Budget 2022: one-off windfall tax imposed on ‘high-income’ firms
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz says 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. – Bernama pic, October 29, 2021

by Anne Edwards

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

Related News

Business / 3y

‘Industry players seeking windfall profit levy price review for Sabah, S’wak’

Malaysia / 3y

Penang defers budget to give state officials with EC room to prep

Business / 4y

Solid economic expansion due to accommodative Budget 2022: PM

Malaysia / 4y

Reintroducing GST good if done properly: Nazir Razak

Business / 4y

Govt to continue reforms focused on broadening tax base

Business / 4y

Recovering M’sian economy to expand slowly at 3.5% this year: economist

Spotlight

Malaysia

Five fatal helicopter crash victims honoured in Sarawak state awards

Malaysia

No Malaysian is left behind; Budget 2027 puts people first - Anwar  

Malaysia

Panama hit by 6.4-magnitude earthquake

Malaysia

Haze blankets 33 areas with unhealthy air

Malaysia

Malaysia’s 2027 Budget is a steady one: people-oriented continuity rather than bold reform

Malaysia

Budget 2027: What is in it for me?

Malaysia

Budget 2027 steps up Sabah, Sarawak funding by RM2.2b amid push for development parity

Malaysia

Budget 2027: Maternity leave entitlement increased, minimum pension raised to RM1,350

You may be interested

Business

Budget 2027 targets foreign e-commerce platforms, channels billions into local firms and startups

Business

Oil slips on Trump’s Iran remarks, but supply risks and strong US dollar keep markets on edge

Business

Budget 2027 channels RM270m to SMEs through crowdfunding, P2P financing

Business

Malaysia draws US$9.5b in orders for US$1.5b sukuk, cuts borrowing costs