KUALA LUMPUR, June 5 — Businesses will get tax incentives for Covid-19 related purchases under the new environment of operating during the epidemic, Prime Minister Muhyiddin Yassin announced today.
The tax incentives come in various forms, such as tax cuts for expenses related to Covid-19 prevention measures, including personal protective equipment (PPE) purchases and costs of employee screening for the coronavirus.
“As the implementation of the MCO (Movement Control Order) has disrupted business activities and led to cash flow problems, the government will provide tax incentives in various forms, including tax deductions related to expenses for operating under new habits, such as PPE purchases, and screening and testing costs,” Muhyiddin told a national broadcast on his National Economic Recovery Plan (Penjana).
In addition to tax incentives, the government will also remit penalties related to late payment of taxes, and also extend the period of expenditure for business premises’ readjustment and renewal.
Muhyiddin further extended a special tax deduction of 30 per cent to reduce business premises’ rental and an Accelerated Capital Allowance.
