Tax Rebate For Set Up Of New Businesses

TAX REBATE FOR SET UP OF NEW BUSINESSES

20K中小型企业税务回扣

According to Short-term Economic Recovery Plan (Penjana), newly established SME can get up to RM 20k tax rebate for the first three years!

FAQS

According to Short-term Economic Recovery Plan (Penjana), newly established SME can get up to RM 20k tax rebate for the first three years!

Those SME registered under Companies Act 2016 (which means Sdn. Bhd. & Plt.) and start their operation within the period 1st of July 2020 until 31st of December 2021.

This rebate start from 1st of July 2020 and end on 31st of December 2021.

The company has to take note that:

  • Amount of rebate is based on company operating expenses and capital expenditure
  • It is up to RM 20,000
  • To claim this rebate, the company has to buy NEW facility, plant and equipment (Cannot be transferred from existing or related company)
  • For example, if the company spent only RM 10,000 on operating expenses and capital expenditure, they can claim up to RM 10,000 rebate; if they spent RM 30,000 on operating expenses and capital expenditure, they can claim up to RM 20,000
Total

Tax Rebate

Operating expenses / Capital expenditure

35,000

20,000

Operating expenses / Capital expenditure

20,000 20,000

Operating expenses / Capital expenditure

15,000

15,000

  • Amount of rebate is based on the actual amount
  • The maximum rebate will be RM20,000

The company must be SME (The paid-up capital has to be RM 2.5 million or below, and annual sales not more than RM 50 million)