TaXavvy Budget 2022 Edition (Part 1)

Welcome to our TaXavvy Budget 2022 Edition (Part 1) which brings you the key tax proposals of Budget 2022 based on the Budget speech as announced on 29 October 2021.

Highlights

Introduction of "Cukai Makmur" of 33% - a special one-off tax to be imposed on non-Micro, Small and Medium Enterprises (non-MSMEs) companies which generate high profits during the pandemic.
Removal of tax exemption of foreign income - foreign-sourced income of Malaysian tax residents is taxed upon remittance into Malaysia.
Special Voluntary Disclosure Program (SVDP) for indirect taxes - SVDP to be introduced in phases with penalty remission incentives of 100% in Phase 1 and 50% in Phase 2.
Carry forward of unabsorbed losses - unutilised business losses to be carried forward for 10 consecutive years of assessment (YAs) (previously 7 YAs).
Special Reinvestment Allowance - to be extended for another 2 YAs until YA 2024.
RPGT on disposal of real properties & shares in real property companies - RPGT rate for disposals made in the 6th and subsequent years after acquisition to be reduced from 5% to 0%.

TaXavvy is a newsletter issued by PricewaterhouseCoopers Taxation Services Sdn Bhd. While every care has been taken in compiling this newsletter, we make no representations or warranty (expressed or implied) about the accuracy, suitability, reliability or completeness of the information for any purpose. PricewaterhouseCoopers Taxation Services Sdn Bhd, its employees and agents accept no liability, and disclaim all responsibility, for the consequences of anyone acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Recipients should not act upon it without seeking specific professional advice tailored to your circumstances, requirements or needs.