The Sun Daily: SOS: Taxpayers Need Help, Not Pressure To Pay UpMarch 16, 2020
BFM: How will SMEs cope?March 30, 2020
Economic Stimulus Package - Pakej Prihatin
The ESP has been announced by our Prime Minister, Tan Sri Muhyiddin Yassin on 27th March 2020. The ESP known as “pakej PRIHATIN” valued at RM250 billion is intended to benefit all Malaysians. Most of the measures announced under the ESP are in the form of a direct assistance to individuals and soft loans to the different parts of the economy.
Amongst the various measures announced, two of them are tax related measures:
1. SMEs - Deferment of tax instalment payment
• SMEs will be allowed to defer the payment of monthly tax instalments for a period of three months beginning from 1st April 2020.
• Under the ESP announced on 27 February 2020:
businesses in the tourism sector are allowed to defer the payment of monthly tax instalments for a period of 6 months beginning from 1st April 2020.
all companies are allowed to revise their tax estimates earlier i.e. in the 3rd month of the instalment payment schedule, if the 3rd month falls in year 2020.
2. Banking institutions - Income from interest or profit on loan or financing taxable upon receipt
• Bank's income from the interest or profit on loan or financing involved in deferment of repayments will only be taxable upon the income being received after the moratorium period.
Other HR related measures from the ESP:
1. Wage Subsidy Program
• Wage subsidy of RM600 a month by the Government for a period of 3 months for each worker with a salary of below RM4,000.
• The employer will only qualify for the subsidy if his income has reduced by more than 50% since 1st January 2020.
2. Employee Provident Fund (EPF) – Employer Consultation Service Program (ECSP)
• EPF will introduce ECSP on 15 April 2020 which will comprise of the following services:
Option to defer employers’ contributions
Restructuring the employers’ contributions
Rescheduling the employers’ contributions
3. Human Resource Development Fund (HRDF) Levy Exemption
• HRDF levy exempted for all sectors for 6 months starting April 2020