PERMAI Assistance Package Key Tax Measures & Subsidies

Infographic of the PERMAI Assistance Package Key Tax Measures & Subsidies

On Monday, 18 January 2021, Prime Minister Tan Sri Muhyiddin Yassin announced the "Perlindungan Ekonomi dan Rakyat Malaysia" (Permai) assistance package worth RM15 billion. This round of economic assistance is aimed at providing vital support to businesses and the general public who may be affected by the new lockdown measures.

What are the tax measures and subsidies available under PERMAI Assistance Package that can assist businesses and the rakyat?

Read the full article on the PERMAI Assistance Package here

Key Tax Measures & Subsidies for Businesses

Rental Discount

Landlords who are entitled to the special deduction for rental discounts given to SME tenants can also now claim relief if the rental discount is given to non-SME tenants. The eligibility period is extended to 30 June 2021

COVID-19 Act 2020 Contractual Obligations

Businesses and individuals are relieved from performing their contractual obligations under the COVID-19 Act 2020. The effective period has been extended to 31 March 2021.

Enhanced Wage Subsidy Programme (WSP 3.0)

Employers from all sectors which operate in the MCO states are allowed under WSP 3.0 to apply for a subsidy of RM600 per employee in respect of employees who earn RM4,000 or below per month (subject to a maximum of 500 employees). The WSP 3.0 is applicable for a period of one month.

Prihatin Special Grant Plus for SMEs

500,000 SMEs in the 7 MCO states will be paid RM1,000 each and 300,000 SMEs in other states will be paid RM500 each. The payments are funded by an additional allocation of RM650 million under the expansion of the Prihatin Special Grant Plus assistance scheme.

Purchase of passenger cars

Buyers of passenger cars are eligible for full Sales Tax exemption if they purchase locally assembled cars or 50% Sales Tax exemption if they purchase imported passenger cars. The exemption is extended to 30 June 2021.

Shorter ownership period for disposal of taxis

Taxi owners who dispose of their taxis are exempted from Excise Duty and Sales Tax if they own the taxi for a period of at least 5 years (previously 7 years). This relaxation is effective from 1 January 2021 to 31 December 2021.

Key Tax Measures & Subsidies for Individuals

Cost of COVID-19 screening

Individuals are allowed tax relief of RM1,000 for medical examinations which are now expanded to include the cost of COVID-19 screening. This relief is effective from Year of Assessment 2021.

Purchase of mobile phones, computers and tablets

Resident individuals are eligible for a special tax relief of up to RM2,500 on the purchase of mobile phones, computers and tablets. This relief is extended to 31 December 2021.

Bantuan Prihatin Nasional (BPN 2.0) & Bantuan Prihatin Rakyat (BPR)

The final payment of the BPN 2.0 will start from 21 January 2021. Under Phase 1 of the BPR, households earning up to RM5,000 per month will receive RM300 each while single individuals earning up to RM2,000 per month will receive RM150 each as the first instalment payment.