COVID 19 – Tax Developments: Economic Stimulus Package

The Prime Minister announced on 27 March, 2020 an economic stimulus package of RM 250 billion to cushion the impact of the Covid-19 pandemic.

The tax-related initiatives are set out below:

  1. the government is allowing deferment of payment of estimate of tax payable instalments to all small and medium enterprises (SMEs) for a three month period beginning 1 April, 2020;
  2. as announced previously, companies involved in tourism-related activities have the choice of deferring payment of estimate of tax payable instalments. For other sectors, they are allowed to amend the estimate of tax payable instalments in the third, sixth and ninth instalments;
  3. bank income from interest or profit on loans or financing, which are deferred, is only taxable when the income is received after the 6-month moratorium period.

Please do not hesitate to contact any of the following persons if you require any clarification:

Vijey M. Krishnan (Partner) 
(T): 603 – 2632 9868

William Wong (Partner)
(T): 603 – 2632 9905

Nicholas Mark Pereira (Senior Associate)
(T): 603 – 2632 9911     

Krystal Chiam (Associate)
(T): 603 – 2632 9999 (ext. 1201)

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