CPA Australia: Malaysian 2021 Budget sees historic spend

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

KUALA
LUMPUR, MALAYSIA – Media OutReach
9 November 2020 – For 2021 Malaysia has earmarked its largest ever budget
spending allocation of RM322.5 billion with RM17bn committed to combating the
health consequences of COVID-19.

 

The
budget, running on the theme ‘Resilient as One, Together we Triumph’, accounts
for 22 per cent of the country’s gross domestic product and was seen as
necessary to support and stimulate an economy heavily impacted by the pandemic.

 

- Advertisement -

Tax
stimulus measures

Jagdev
Singh FCPA, Chairman of the Tax Committee at CPA Australia Malaysia Division
who is also Tax Leader, PwC Malaysia, says the budget has been crafted to
alleviate the economic burden of the people and promote investments in targeted
sectors in order to stimulate economic recovery.

 

“Measures
such as the one percentage point reduction in the personal tax rate chargeable
on income between RM50,000 and RM70,000, the expansion of personal reliefs
focusing on health and wellness matters and the extension of tax relief for
contribution to the Private Retirement Scheme would greatly benefit the M40
(middle income) bracket by reducing their tax burden. [These measures] will all
assist.”

- Advertisement -

 

“Cash
handouts remain the most relevant way of putting money into the pockets of the
B40 (lower income) group and it is good to see that the government has further
enhanced the Bantuan Prihatin Nasional.”

 

Jagdev
also adds that the government has announced a number of measures to support
economic recovery in the form of new and extended tax incentives to promote
investment, job retention and job creation.

- Advertisement -

 

Although
businesses have urged further relief including the reduction in the corporate
tax rate, and a review of the seven-year time limit for tax losses and loss
carry back provisions, the government has resisted the urge to tweak the tax
legislation.

 

A
budget for all

Meanwhile,
CPA Australia Malaysia Divisional Councillor Surin Segar FCPA, who is also
Maybank Group’s Head of Tax and CFO of the Maybank Foundation, said the budget
was comprehensive, containing a slice for almost everyone in each segment of
society, especially those impacted by the pandemic.

 

“It
is also a budget which the man on the street requires, covering medical needs
for self and parents, encouraging a healthy living as well as getting
government linked corporates to be involved in supporting online schooling and
environmental preservation,” says Surin.

Read Also:  Southco’s Extended Length Captive Screw Offers New Standard Solution for Panel Applications

 

Indirect
tax changes

Fellow
Divisional Councillor Alan Chung FCPA, who is Senior Executive Director Grant
Thornton Malaysia, notes there were few takeaways on the indirect tax segment.

“In
addition to a new tax imposed on cigarettes on duty free islands, there were
several indirect tax proposals in the appendices to the [budget] speech. One is
on the extension of an existing stamp duty exemption to revive abandoned
housing projects and the other is expanding tourism tax on accommodation booked
through online platforms from July 2021.”

 

EFP
withdrawals

Tan
Lay Keng FCPA, Partner, Ernst & Young Tax Consultants Sdn Bhd, who is also
a Divisional Councillor, says the
approval to withdraw RM500 per month from Employees Provident Fund (EPF)
Account 1 for 12 months (from January 2021), in addition to approval to
withdraw from EPF Account 2 under i-Lestari introduced in March 2020 will be
helpful in giving people cash to meet
immediate needs.

 

She
notes: “Employees’ EPF contribution rate reduced from 11 per cent to 9 per cent
(from January 2021 for 12 months) will also augur well for the people.”

 

Lay
Keng also points out benefits in tax relief announcements for health and
education. She says: “Tax relief available for medical expenses for serious
diseases pertaining to self, spouse and child to include expenses incurred for
specific vaccination (e.g. pneumococcal, influenza and COVID-19, when
available) would also broaden the scope of tax relief,” she adds.

Read Also:  Henkel sets new and ambitious targets for sustainable packaging and climate protection

 

“Tax
relief for technical education fees to include expenses incurred for
up-skilling and self-enhancement courses in fields of skills recognised by the
Department of Skills Development, Ministry of Human Resources would be helpful
to the nation,” she says.

 

Related infographic: See all the
highlights of the Malaysian Budget 2021

About CPA Australia

CPA Australia is one of the
world’s largest accounting bodies, with more than 166,000 members working in
100 countries and regions and supported by 19 offices globally. Our core
services to members include education, training, technical support and
advocacy. Employees and members work together with local and international
bodies to represent the views and concerns of the profession to governments,
regulators, industries, academia and the community. Visit cpaaustralia.com.au

CPA Australia: Malaysian 2021 Budget sees historic spend

- Advertisement -
CPA Australia: Malaysian 2021 Budget sees historic spend - Brand SpurCPA Australia: Malaysian 2021 Budget sees historic spend - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -
CPA Australia: Malaysian 2021 Budget sees historic spend - Brand SpurCPA Australia: Malaysian 2021 Budget sees historic spend - Brand Spur

Latest News

SurveyMonkey to Report Q4 and Fiscal Year 2020 Financial Results on February 11, 2021

Jan. 21, 2021 - SurveyMonkey, a leader in agile software solutions for customer experience, market research, and survey feedback,...

Keeping an eye on Biden’s plans for Africa

President Joe Biden has been sworn into office, ushering in a new administration, new foreign policy and a new approach to US trade and...

The Trade Desk Appoints Benson Ho as Senior Vice President, North Asia

SHANGHAI, CHINA - Media OutReach - 22 January 2021 - Global advertising technology leader, The Trade Desk, today announced the appointment of Benson Ho as Senior Vice President of North Asia. In this role, Ho will lead the company's business and growth strategy in the North Asia region, covering Greater China, South Korea and Japan. Ho will report to Tim Sims, Chief Revenue Officer.

 

 CPA Australia: Malaysian 2021 Budget sees historic spend - Brand Spur

 

Ho brings vast leadership experience in the Asian media industry, most recently as Chief Data Strategy Officer at Tencent Marketing Solution, an important early inventory partner of The Trade Desk in China. Prior to that, he served as Amnet's chief consultant and programmatic expert to Dentsu Aegis Network. He has also served in senior leadership positions at Sizmek, GroupM and Digitas.

 

"One of The Trade Desk's biggest priorities is Asia, and with Benson joining our team, we're confident he will help accelerate our growth strategy in the region," said Tim Sims, Chief Revenue Officer, The Trade Desk. "Benson brings experience and expertise of data-driven advertising, as well as his invaluable relationships with key partners and advertisers, that are specific and unique to the Asian market. I look forward to partnering with Benson as we execute our next phase of growth in the region."

 

"I am delighted to join The Trade Desk and build on the success the company has had in North Asia," said Ho. "The advertising industry is at a turning point right now, and there's enormous opportunity for brands to leverage global best practices and connect with consumers in new ways. It's very exciting to be a part of the team that's delivering a unique solution and expertise to global advertisers in the region."


About The Trade Desk

The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and Asia Pacific. To learn more, visit thetradedesk.com or follow us on Facebook, CPA Australia: Malaysian 2021 Budget sees historic spend - Brand SpurTwitter, and LinkedIn. 

 

CPA Australia: Malaysian 2021 Budget sees historic spend - Brand Spur

DJ Khaled announced as International Host of the MAMAs Kampala 2021

Grammy® Award-winning global sensation, DJ and record executive, DJ Khaled, who is best known for his hip hop and R&B hit anthems, will be the international...

Entrepreneurialism alive and well in the time of the pandemic

Entrepreneurial spirit is up among women and younger adults. One-third of adults across the world show a very high level of entrepreneurial spirit, according to...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -CPA Australia: Malaysian 2021 Budget sees historic spend - Brand SpurCPA Australia: Malaysian 2021 Budget sees historic spend - Brand Spur