BUDGET 2017 HIGHLIGHTS
On 21 October 2016, our Prime Minister cum Finance minister has tabled the Malaysian Budget 2017. The following is the summary of his speech:-
Income Tax Related
1. Double Tax deduction for private companies to provide Structured Internship Programme. Effective YA 2017 to YA 2019.
2. Book (RM1,000), Sport Equipment (RM200) and Computer Relief (RM3,000 every 3 years) are now combined into LIFESTYLE relief of RM2,500 per year. Extended to cover printed newspapers, smartphones, tablets, internet subscription and gym membership. Effective YA 2017.
3. SME Tax rate for:-
– First RM500,000 reduced from 19% to 18%
– Reduction of 1 to 4% for companies with significant increase of chargeable income (5% to 20%). For YA 2017 and YA 2018.
4. New Tax relief for breastfeeding equipment up to RM1,000 to support working women. Effective YA 2017.
5. New tax relief up to RM1,000 for working parents who enroll their children aged 6 years and below, into registered nurseries and pre-schools. Effective YA 2017.
GST Related Changes
1. GST Collection reached nearly RM30 billion as of 19 October 2016 and GST rate is to be stay!
2. GST Relief for aid equipment for persons with disabilities.
3. Through the establishment of Collection Intelligence Arrangement (CIA) under the Ministry of Finance, Inland Revenue Board (IRB), Royal Malaysian Customs Department (RMCD) and Companies Commission of Malaysia (SSM) will share date to enhance efficiency in tax collection and compliance.
Stamp Duty Related
1. Stamp duty exemption for instruments of transfer and housing loan instruments is to be increased from 50% to 100%. Limited to houses value up to RM300,000 for first home buyers between 1 January 2017 and 31 December 2018.
2. Ad valorem stamp duty on instruments of transfer of property worth more than RM1 million will be increased from 3% to 4%. Effective 1 January 2018.
Other interesting budget allocations:–
1. “No matter what you say about BR1M, in an event I attended, a Malaysian Indian BR1M recipient hold my hand tight and told me BR1M has helped me and my family a lot!” statement by Prime Minister.
In conjunction to that, BR1M assistance is increased from:-
– Household from e-Kasih RM1,050 and RM1,000 to RM1,200
– Hosuehold earning RM3,000 to Rm4,000, increased from RM800 to RM900
– Single individuals earning RM2,000 and below, increased from RM400 to RM450.
2. “To the Terengganu Menteri Besar, I still want to thank you though you refused to help me and Fatehah, both Terengganu natives who fought at the World and Olympic Levels. Thank you for not buying us a Roadbike for us to use in preparation for the Olympic Games”
Thanks to the statement by Olympic bronze medallist Azizulhasni Awang, we now have RM1.2 billion for development of sports allocated.
3. Taxi drivers get to have a grant of RM5,000 to buy new vehicles and SOCSO is introduced to protect tax drivers with income up to RM3,000.
UBER is here to stay and government is encouraging it. For B40 group (monthly income of RM3,900 and below) can now use BR1M for down payment and rebate of RM4,000 will be provided for purchase of Proton Iriz.
Guide to become an Uber Driver? Register HERE
4. In order to encourage youths to make long term investments, One off incentive is to be increased from RM500 to RM1,000 for Private Retirement Scheme (PRS) contributors.
5. Discounts for settlement of PTPTN loans :-
– 15% for full settlement
– 10% for 50% settlement
– 10% through salary deduction and direct debit
That summarises the Budget 2017 =)