Possible Tax Breaks Included in the New Budget

Updated on Monday 07th August 2017

Possible Tax Breaks Included in the New Budget Image
Malaysia’s Second Minister for Finance recently stated that the Government wishes to introduce targeted tax breaks in certain industries. The change would apply starting with this year and it would favor small and medium sized businesses. The goal is to help promote a number of key industries. Right now, foreign investments in Malaysia are supported through a wide range of incentives in various industries. One of the experts at our law firm in Malaysia can give you specific information on how these incentives apply. 

New tax breaks in selected sectors

Datuk Seri Johari Abdul Ghani, Malaysia’s Second Minister for Finance, recently shared the Government’s initiative for implementing targeted tax breaks. The Malaysian official declared in an interview that the regime for allowing tax incentives could no longer be a general one, instead the Government has to focus on those industries that need promoting. This means that the tax breaks will be targeted, in order to support certain business sectors, and that small and medium sized companies will be the ones to benefit most out of this change.

In his statement, the Government official also said that tax breaks could be awarded for automatic processes, because of the reported labor shortages.

One of our lawyers in Malaysia can give you details on how these changes could apply and how they would influence the current taxation system for your type of company.

The current incentives system in Malaysia 

Foreign investments are encouraged by the Malaysian Government through a series of investment incentives. Special consideration is given to those companies that promote investments in new projects or those who expand existing ones. Activities like biotechnology, services, tourism, agricultural activities, car component manufacturing, Islamic finance or venture capital companies are among those that benefit from a favored activities regime.

Contact our law firm in Malaysia for more information and advice on how to benefit from the existing tax incentives for small and medium sized companies.