Malaysia: Tax proposals in 2017 budget

Tax provisions in 2017 budget in Malaysia

The prime minister on 21 October 2016 tabled the 2017 budget. There are tax proposals in the 2017 budget including measures for:

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  • A reduction in the corporate income tax rate based on an increase in chargeable income
  • A reduction in the corporate income tax rate for small and medium enterprises (SMEs)
  • An expansion of Halal products eligible for tax incentives
  • An increase in the tax deduction for sponsoring arts, cultural, and heritage activities
  • An extension of certain tax incentives (Islamic banking, Takaful businesses, hotels, vendor development programs)
  • An extension and expansion of the scope of the double deduction for the structured internship program
  • An increase in the stamp tax on real property
  • Individual (personal) tax relief including tax relief on fees paid for childcare
  • Review of the goods and services tax (GST) treatment in free zones and warehousing, and GST relief for disabled persons

 

Read a budget shapshot [PDF 1.22 MB] and an October 2016 report [PDF 3.5 MB] of the 2017 budget highlights prepared by the KPMG member firm in Malaysia

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