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Updated FAQs - special deduction on rental discounts given to tenants

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EY Malaysia Tax
5 Apr 2022
Subject Tax alert
Categories Tax
Jurisdictions Malaysia

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Updated FAQs on the special deduction on rental discounts given to tenants

The following Amendment Rules were gazetted on 27 December 2021, to legislate the Budget 2022 proposal that the special deduction given to property owners who provide rental reductions of at least 30% to their tenants be extended for another six months, until June 2022 (see Tax Alert No. 1/2022):

  • Income Tax (Special Deduction for Reduction of Rental to a Small and Medium Enterprise) (Amendment) Rules 2021
  • Income Tax (Special Deduction for Reduction of Rental to a Tenant other than a Small and Medium Enterprise) (Amendment) Rules 2021 

Following the above, the IRB has published an updated version of the FAQs document in Bahasa Malaysia, titled “Soalan Lazim Potongan Khas Kepada Pembayar Cukai Yang Memberi Pengurangan Sewa Premis Perniagaan Kepada Perusahaan Kecil Dan Sederhana (PKS) Dan Bukan PKS Di Bawah P.U.(A) 353/2021, 354/2021, 479/2021 & 480/2021”, dated 22 March 2022, to reflect the above-mentioned legislative changes. 

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