BAKER TILLY MALAYSIA · Baker Tilly Malaysia and its related entities in Malaysia trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members

BAKER TILLY MALAYSIA

7 April 2020

07/04/2020

Following the PRIHATIN Rakyat Economic Stimulus

Package (“PRIHATIN Rakyat ESP”) previously announced

on 27 March 2020, the Government has received feedback

from Small & Medium Enterprises (“SMEs”) and micro

businesses requesting for assistance during the COVID-19

period.

In response, the Prime Minister on 6 April 2020 announced

an additional package of RM10 billion to support the SME.

We cover these measures in this bulletin and leave it to

businesses to consider if these measures are sufficient in

helping them make it through the next few months. What

has not been made clear in the announcements is

whether the packages are also available to entities

other than ‘companies’, like partnerships, sole

proprietors and unincorporated businesses.

Additional PRIHATIN SME Economic Stimulus Package (“PRIHATIN Plus”)

Baker Tilly Malaysia│ Page 1 │ 7 Apr 2020

Wage Subsidy Program (“WSP”)

The Government has increased the allocation for WSP from RM5.9 billion to RM13.8 billion. Under this additional initiative, all companies with

local employees earning a monthly salary of RM4,000 and below will receive wage subsidies for a period of 3 months effective from 1 April 2020

as follows:

WSP under PRIHATIN Rakyat Enhanced WSP under PRIHATIN Plus Application

Wage subsidy

for employer

• RM600 per month per

employee.

• The scheme is limited to 100

employees for each employer.

• Companies with more than 200 employees -

RM600 per month per employee (the scheme is

limited to a maximum of 200 employees for each

employer).

• Companies which have between 76 to 200

employees - RM800 per month per employee.

• Companies which have up to 75 employees -

RM1,200 per month per employee.

It is assumed that the 50% reduction in revenue

condition imposed under the WSP continues to

apply to all the above – this was not made clear

in the 6 April 2020 announcement.

• Employers are allowed to

make the application (via

prihatin.perkeso.gov.my)

starting from 1 April 2020.

• The application process

may take 7 to 14 days for

the wage subsidy to be

credited directly into the

employer’s bank account.

For registration and

submission of the forms,

please follow the link

HERE.

Below are the salient points from the PRIHATIN Plus announcement :-


https://www.perkeso.gov.my/index.php/en/wage-subsidy-programme

Waiver/Discount of Rentals to SMEs and Further Tax Deduction to Owners of Private Premises

• Owners of private premises who are willing to reduce rental rates on their premises rented to SMEs during the Movement Control Order (MCO)

and three months after it ends will be given a further tax deduction equivalent to the amount of rental reduction (i.e. from April to June 2020).

This is subject to the condition that there is a reduction of the rental by at least 30% from the original rental.

• Rentals will be also be waived or discounted for grocery businesses operated by SMEs at premises owned by the Government-Linked

Companies (GLCs).

Reduction of Foreign Workers Levy

• To ease the cashflow of all companies, there will be a 25% reduction of the levy for foreign workers whose work permits expires between 1

April 2020 to 31 December 2020. However, this measure is not applicable to domestic helpers.

Moratorium to SMEs for Loan Repayments under the Credit Facilities by Registered Money Lenders

• The Government is urging registered money-lenders to provide moratoriums to SMEs for loan repayments for 6 months commencing April

2020, similar to the moratorium offered by the banks.



Special PRIHATIN Grant for Micro SMEs and Abolishment of Interest Rate under Micro Credit Scheme

• The Government will provide a special grant of RM3,000 to all micro SMEs. In order to benefit from the special grant, the micro SMEs must

register with the Inland Revenue Board (IRB). The Government will obtain the list of micro SMEs from the SSM and local authorities. This

special grant is anticipated to benefit 700,000 micro SMEs.

• For the SMEs, the current 2% interest rate will be reduced to “0% interest rate” under the Bank Simpanan Nasional RM500 million Micro Credit

Scheme.

The loan scheme for micro businesses is also extended to TEKUN Nasional with a maximum loan limit of RM10,000 per company at “0%

interest rate”.

The applicant can only opt for one of the above schemes.

Moratorium/Extension of Time for Lodgement of Statutory Documents and Financial Statements to Companies

Commission of Malaysia (CCM)

• The Government has agreed to grant an automatic 30-day moratorium from the date of Movement Control Order (“MCO”) ends for companies

to lodge their statutory documents with CCM.

• The filing of the accounts for companies with financial years ending from 30 September 2019 until 31 December 2019 is extended for three

months from the end of the MCO, with no late charges being imposed. However, the companies will have to apply to the CCM for this extension

of time.



Anand Chelliah

Managing Partner, Tax Services

Asia Pacific Tax Leader

E: [email protected]

T: +60 3 2297 1000

DL: +60 3 2297 1093

Murugan Anbanantham

Director, Tax Services

Technical


T: +60 3 2297 1000

DL: +60 3 2297 1004

Marcus Tan

Executive Director, Tax Services

Corporate Tax & Tax Incentive


T: +60 3 2297 1000

DL: +60 3 2297 1521

Tay Siew Chu

Associate Director, Tax Services

Corporate Tax & Personal Tax


T: +60 3 2297 1000

DL: +60 3 2297 1139

Yohan Francis

Executive Director, Tax Services

International Tax & Transfer Pricing


T: +60 3 2297 1000

DL: +60 3 2297 1096

Sandra Saw

Associate Director, Tax Services

Corporate Tax & Sales Tax and Service Tax


T: +60 3 2297 1000

DL: +60 3 2297 1146

Contact Our People


Head Office

Kuala Lumpur Baker Tilly Tower,Level 10, Tower 1, Avenue 5,Kampung Kerinchi, 59200 Kuala Lumpur.T: +6 (0) 3 2297 1000F: +6 (0) 3 2282 [email protected]

Branch Office

Johor – Batu PahatNo. 33, Jalan Penjaja 3,Kim's Park Business Centre,83000 Batu Pahat, Johor.T: +60 7431 5403F: +60 7431 4840

Johor – Johor Bahru157-B, Jalan Sri Pelangi, Taman Pelangi,80400 Johor Bahru, Johor.T: +60 7332 6925 / 6926F: +60 7332 6988

Labuan1st Floor, U0509,Lazenda Commercial Centre,Phase 11, Jalan Tun Mustapha,87000 Federal Territory of Labuan.T: +60 8744 0800

The information contained in this leaflet is based on current taxation laws and other related legislation, including proposals and measures contained in the ADDITIONAL PRIHATIN SME ECONOMIC STIMULUS PACKAGE announcement on 6

April 2020. Every effort has been made to ensure that the information contained in this leaflet is accurate and based upon our understanding and interpretation of the relevant information obtained from the stimulus Speech, Appendices and

relevant sources, and is subject to the issuance of the relevant enactments.

© Baker Tilly Malaysia. All rights reserved. Baker Tilly Malaysia and its related entities in Malaysia trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal

entities.

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