KUALA LUMPUR – The Ministry of Youth and Sports (KBS), through its agency Esports Integrated (ESI), is about to complete a proposal paper for income tax exemption on prize money earned by national esports athletes, says its minister Datuk Seri Ahmad Faizal Azumu.
He said the proposal to provide the tax exemption as announced by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in Budget 2022 was still in the process of being implemented.
“Whatever was announced by Tengku Zafrul last year stands and is in the process for us to implement,” he said at a press conference before the final match of the Mobile Legends Bang Bang 2022 Southeast Asia Cup between RRQ Hoshi (Indonesia) and RSG Philippines (Philippines) here today.
Apart from the RM20 million allocation to the sport in Budget 2022, the government plans to provide income tax exemption on prize winnings from esports tournaments.
Meanwhile, ESI chief executive officer Ahmed Faris Amir said the proposal paper for the tax exemption would be presented to KBS before being brought to the Ministry of Finance and the Inland Revenue Board for approval.
“At this point in time, the work is still in progress at ESI, including preparation of e-sports guidelines and best practices for regulatory tax exemption,” he said.
Meanwhile, Ahmad Faizal said he was impressed with the spirit shown by the two national teams, Todak and Orange Esports despite returning empty-handed from the tournament.
Todak lost 0-3 to RSG Philippines and Orange Esports too lost with the same result to RRQ Hoshi in the semi-finals yesterday.
He said the organisation of the tournament was proof of the government’s support for the esports industry which was booming at the moment, while also strengthening ties among the players and the competing teams. – Bernama, June 19, 2022
