The Budget Malaysia 2019 was announced in Congress on November
2nd, 2018. Tannet has compiled 11 key points.
1. Splitting the Provident Fund and Life Insurance
Income Tax Relief
At present, the provident fund and life
insurance and Islamic insurance can enjoy a total income tax reduction of RM 6,000.
However, starting from 2019, it will be divided into a provident fund tax
deduction of RM 4,000 and Islamic insurance or life insurance tax deduction of
RM3000. That is to say, these two projects can get up to RM 7,000 in income tax
relief.
2. Increase the SSPN Income Tax Reduction
Those who are currently
participating in the National Education Savings Plan (SSPN) will receive a tax
reduction of up to RM 6,000. However, starting from 2019, it is raised to RM
8000!
3. Donations
to Schools can be Tax Deductible
Income tax reductions will
be granted for donations to government colleges and public colleges under the
Ministry of Education. For other schools and colleges registered with the
Ministry of Education, tax deductions will be applied according to the
situation.
4. Company
Income Tax Reduction
The company's income tax
rate will be reduced from 18% to 17% for the companies which reach RM 600,000
taxable income and with paid-up capital of less than RM2.5 million.
5. Employment
Insurance System
The employment insurance
plan will be fully implemented on January 1, 2019, and the unemployed will
receive subsidiary.
6. The Minimum
Salary
From January 1, 2019, the
national minimum salary will be unified to RM1100.
7. House
Price Decrease
Real Estate and Housing
Developers' Association Malaysia (Rehda) The Malaysian Real Estate Developers
Association has agreed to lower the price of new homes by 10%.
8. Real
Property Gains Tax
When the Malaysian citizens
and permanent residents trade in the industry, the industrial profit tax will
increase from 0% to 5%. Companies and foreigners will be subject to an increase
in industrial profits tax from 5% to 10%. In addition, the stamp duty on the
sale and purchase of RM1 million or more will be raised from 3% to 4%.
9. Sugary
Drink Tax
From April 1st, 2019, all
non-alcoholic beverages with a sugar content of more than 5 grams per 100 ml
and juices with a sugar content of more than 12 ml will be taxed at 40 cents
per liter.
10. Retirement
Subsidiary
When a citizen over 60
years of age is employed, the mandatory contribution of the monthly provident
fund is reduced from 6% to 4%.
11. Company
Scholarships and National Higher Education Funds Scholarships (PTPTN) Borrowers
The company sponsored
employees to pursue a college or course is tax deductible. Low-income group
students will receive a discount on loans after they have obtained the
first-level honors degree. PTPTN borrowers with incomes exceeding RM1000 are
required to repay the loan on a monthly basis from 2% to 15% of the income.