Malaysia’s Budget 2018 - Tax Highlights
On 27 October 2017, Malaysia’s Prime Minister and Minister of Finance, YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak, delivered his annual budget speech; the last one before the next General Election which must be held not later than 24 August 2018. Titled “Prospering An Inclusive Economy, Balancing Between Worldly And Hereafter, For The Wellbeing Of Rakyat, Towards The Tn50 Aspiration”, this budget patently focuses on the wellbeing of Malaysian people (Rakyat). While individuals will benefit from a reduction of tax rates and new tax exemptions, there are merely minor changes with regards to corporate tax. The tax rate will remain unchanged for companies and only very few new tax incentives and exemptions will be created.
The main proposals announced by the Prime Minister are summarised in the table herein below. Where required, Luther is of course prepared to provide you with further details in order to assist you analyse the potential consequences of these changes for your company.
Pascal Brinkmann, LL.M. (Stellenbosch)