Malaysia Budget 2022
As announced on 29 October 2021, Budget 2022 will continue to prioritize programs that support the nation’s economic recovery.
Malaysia Budget 2022 Tax snapshots
As the nation emerges from the pandemic, the Budget 2022 proposals were formulated to rebuild the economy along major themes of recovery, resilience and reform. Tax proposals include measures aimed at increasing government tax revenues and spurring investment.
The tax highlights of Budget 2022 include:
- Existing tax exemption on foreign-sourced income to be removed from 1 January 2022. Malaysian residents will be subject to tax on foreign income remitted into Malaysia.
- Introduction of a 33% marginal income tax bracket for companies on chargeable income of more than RM100m, for the year of assessment (YA) 2022 only.
- Companies will be able to carry forward losses for 10 YAs, instead of seven. This will apply restrospectively from YA 2019.
- Reinvestment allowance (RA) extension for a further two years (YAs 2023 and 2024) on qualifying capital expenditure where the RA and Special RA period have expired.
- Real property gains tax (RPGT) will revert to 0% for individuals, for disposals in the sixth year and onwards.
- An indirect tax Special Voluntary Disclosure Program (SVDP) will be introduced, in phases. Penalty remissions of 100% in Phase 1 and 50% in Phase 2 are proposed. Remission of taxes may be considered on a case-by-case basis.
- Sales tax exemption on CKD (100%) and CBU (50%) passenger cars, including MPVs and SUVs, extended until 30 June 2022.
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