The 2017 Malaysian budget includes positive changes for small and medium companies operating in the country. This is a continuation of an initiative that started last year to encourage these types of businesses. While the incentives look promising, industry experts are waiting to see how the initiative will be implemented by the authorities. Our lawyers in Malaysia can give you more information about these incentives and aids for SMEs.
 

Malaysia’s 2017 budget was recently announced by the Government and it remains in line with the current economic climate and the need to maintain revenue. The predicted fiscal deficit for 2017 is lower than the one expected for the current year. The Government also predicted a growth rate of 4-5%, compared to the 4 to 4.5% recorded for this year.

The changes that will be introduced by the Malaysian Government starting with 2017 refer to a lower corporate income tax if the respective company in Malaysia has managed to increase its taxable income during the 2017 and 2018 years of assessment. The reduction will be based on the percentage of increase.

Experts from fields like manufacturing believe that Malaysia can continue to remain competitive if it implements these changes related to reducing the costs of doing business.

Our lawyers in Malaysia can give you more information about how these corporate tax reductions will be implemented for SMEs.
 

Direct and indirect tax incentives for companies in Malaysia are provided according to the Promotion of Investments Act of 1986, the Income Tax Act of 1967 as well as other Acts.

The Government offers incentives for small and medium companies operating in the following sectors:
-    manufacturing;
-    high-tech companies;
-    agriculture;
-    patent and trademark registration;
-    other selected industries.

Partial or total tax relief is possible in Malaysia if companies comply with the existing criteria.

To find out more about tax incentives for companies, please contact our law firm in Malaysia.