2017 BUDGET SNAPSHOT21 October 2016

Reduction in

corporate income

tax rate based on

increase in

chargeable

income

Reduction in

corporate income

tax rate for Small

and Medium

Enterprises (SMEs)

Extension and

expansion of scope

of double deduction

for Structured

Internship

Programme

Expansion of Halal

products eligible

for tax incentive

Increase in tax

deduction for

sponsoring arts,

cultural and

heritage activities

Personal tax reliefs

for lifestyle, fees

paid to childcare

and kindergartens

and purchase of

breast feeding

equipment

Review of GST

treatment in Free

Zones and

Warehousing

Schemes and GST

relief for disabled

persons

Extension of tax

incentives (Islamic

Banking and Takaful

Businesses, Hotels,

Vendor

Development

Programme)

Increase in stamp

duty on real

property

Extension of double deduction for Structured

Internship Programme (SIP) to YA 2019 and

expansion of SIP to include Malaysian students

pursuing Malaysian Skills Certificate Level 3

Expansion of tax incentive for qualifying halal

products to include production of nutraceutical

and probiotic products by Halal Industry Players

in Halal Parks

Reduction in corporate income tax rate by

1% - 4% based on the percentage increase

in chargeable income in excess of 5% for

YA 2017 and YA 2018

Increase in stamp duty rate on instruments

of transfer of real estate worth more than

RM1million from 3% to 4% with effect

from 1 January 2018

New tax relief of up to RM1,000 for

parents whose children up to 6 years of

age are enrolled in registered child care

centres or kindergartens from YA 2017

New tax relief for purchase of

breastfeeding equipment to be claimed

once in 2 years from YA 2017

Extension of income tax and stamp duty

exemptions for International Currency

Business Units (ICBUs) which operate Islamic

banking and tafakul business in foreign

currencies to YA 2020 and 31 December

2020 respectively

Pioneer status and investment tax allowance

incentives for new 4 and 5 star hotels to be

extended to applications received by the

Malaysian Investment Development Authority

until 31 December 2018

Double deduction for anchor companies

under the Vendor Development Programme

to be extended to 31 December 2020

Tax deduction for a company that sponsors

arts, cultural and heritage activities approved

by the Ministry of Tourism and Culture to be

increased to RM700,000 per year (limited to

RM300,000 for foreign arts, cultural and

heritage activities) from YA 2017

Lifestyle tax relief of RM2,500 per year

effective from YA 2017. This relief

combines the existing reading materials,

computers and sports equipment reliefs

and expands the scope to include

newspapers, smartphones, tablets,

internet subscriptions and gymnasium

membership fees

2017 BUDGET SNAPSHOT21 October 2016

Streamlining of GST treatment in Free

Commercial Zones (FCZ) and Free Industrial

Zones (FIZ) from 1 January 2017

Streamlining of GST treatment between

imported goods and goods from the Principal

Customs Area allowed to be deposited into

warehouses under the Warehousing Scheme

from 1 January 2017

GST relief to be given directly to disabled

persons who are valid OKU card holders. The

list of aid equipment eligible for GST relief has

also been widened

Reduction in corporate income tax rate for

SMEs from 19% to 18% on chargeable

income of up to RM500,000 from YA 2017

2017 BUDGET SNAPSHOT21 October 2016