Govt studying more competitive tax incentive framework, extending existing incentives till 2022

KUALA LUMPUR: Existing tax incentives that are due to end this year will be extended until 2022 as the government undertakes a comprehensive study of the existing tax incentive structure, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“A comprehensive study of the existing tax incentive structure is underway to provide a competitive, transparent and more attractive tax incentive framework.

"To provide space for the study to be completed, the existing tax incentives due to end this year will be extended until 2022,” he said when tabling Budget 2021 in Parliament today.

Among others, the special tax rates offered under the National Economic Recovery Plan (PENJANA) to selected manufacturing companies that relocate their operations to Malaysia and bring in new investments will be extended for an additional year until Dec 31, 2022,

In addition, the scope of these tax incentives would be widened to companies in selected services sectors that had significant multiplier effect by providing an income tax rate of 0 to 10 per cent for a period of 10 years, he said.

Tengku Zafrul said the extension also covered tax incentives for maintenance, repair and overhaul (MRO) activities for aerospace, building and repair of ships, Bionexus status and economic corridor developments.

-- BERNAMA

TAGS: Tax incentives, Manufacturing, MRO, Budget 2021, Investments, Tengku Zafrul