Tax matters under PEMULIH

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Tax matters under PEMULIH

Tax matters under PEMULIH Stimulus Package which has been announced by the Prime Minister on 28 June 2021.

A special tax deduction

Tax deduction is given to employers for expenses incurred on equipment and services for providing vaccination centres.

Tax deduction for community and charitable projects in relation to COVID-19 include donation to providing vaccination centres.

Tourism sector

Deferment of tax instalment payments for companies like tourism sector, cinema, spa…

Exemption of service tax and tourism tax for tourism sector until the end of 2021.

Wages Subsidy Program 4.0

The new WSP 4.0 allows the employers to apply for subsidy of RM600 per employee (up to 500 employees) for the following periods during Phase 2 and Phase 3 of the National Recovery Plan (PPN):

  • Phase 2 All sectors

  • Phase 3 Sectors listed under the negative list

The condition for employee to earn a monthly salary of not more than RM4,000 is removed under WSP 4.0.

HRDF

A 2-month HRDF levy exemption is provided automatically for all employers that are unable to operate during the MCO.

Employers which have been required to contribute to HRDF under the expanded coverage from 1 March 2021 will continue to be exempted from HRDF levy up to 31 December 2021

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