NORVIC TAX SERVICES SDN. BHD. Registration No.

198101003890 (70004-T)

Special updates – Prihatin Tambahan and Income Tax Matter

during Movement Control Order Period
Reference
Further to the announcement of Prihatin Rakyat, the new government has
announced the Prihatin Tambahan on 6 April 2020 to reduce the burden of Small
and Medium Enterprises (SMEs) during this challenging period.

We summarise the following for your attention:-

A. HIGHLIGHT FOR PRIHATIN TAMBAHAN PACKAGE Speech Prihatin Plus

06.04.2020
1. ENHANCEMENT OF WAGE SUBSIDY PROGRAMME (WSP)

All companies with local workers earning of RM4,000 and below will receive
wage subsidy as below:-

No. of employee employed Subsidy amount

by company

• More than 200 • RM600 subsidy for each eligible

employees employee.
• Cap on number of employee eligible
for subsidy is increased from 100 to
200.

• Between 76 to 200 • RM800 subsidy for each eligible

employees employee

• 75 employees or less • RM1,200 subsidy for each eligible

employee

The period of assistance and other conditions as announced in the existing

WSP continue to apply.

For more details, you may refer to:-

FAQ_penambahan_PSU_dan_soalan_tambahan_JKKP_7.4.2020.pdf

2. REDUCTION OF LEVY ON FOREIGN EMPLOYEES

Foreign employees levy is reduced by 25% for work permits expiring

between 1 April 2020 to 31 December 2020.

This is not applicable to domestic maids.

3. SPECIAL GRANT TO MICRO-SMEs

A special grant of RM3,000 will be given to each eligible micro-SME. A

micro-SME is defined as a company with sales turnover of less than
RM300,000 or employees less than 5 people.

To enjoy this incentive, micro-SMEs must register with Inland Revenue

Board (IRB).



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Special updates - Prihatin Tambahan and Income Tax
Matter during Movement Control Order Period

4. ADDITIONAL FINANCIAL ASSISTANCE UNDER MICRO CREDIT Reference

SCHEME

The 2% interest rate for loans given under Bank Simpanan Nasional’s Micro
Credit Scheme will be abolished by the Government.

The Micro Credit Scheme for Micro-SMEs is also extended to loan under
TEKUN Nasional with a maximum of RM10,000 interest free loan per
borrower.

The above schemes are mutually exclusive. Applicants can only choose
either one of the above schemes.

5. WAIVER OR DISCOUNT ON RENT

(i) Government-Linked Corporations (GLCs) owned premises rented to

retail SMEs

Waiver of rent or reduction of rent will be given to retail SMEs for

premises owned by GLCs.

(ii) Additional tax deduction for private sector owned buildings and
business premises rented to SMEs

Owners of buildings or business premises will be given an additional

tax deduction equivalent to the amount of reduction in rent given to
tenants which are SMEs for the period April 2020 to June 2020.

To qualify for this tax deduction, the reduction in rent during this period
must be at least 30%.

6. EXTENDED DEADLINE FOR SUBMISSION TO COMPANIES

COMMISSION OF MALAYSIA (CCM)

A moratorium of 30 days from the end of Movement Control Order (MCO)

period is given to companies to submit statutory documents to CCM.

Companies with financial year ended 30 September 2019 to 31 December

2019 are given extension of 3 months from the end of MCO period to
submit financial statements to CCM.

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Special updates - Prihatin Tambahan and Income Tax
Matter during Movement Control Order Period
B. TEMPORARY MODIFICATION FOR PAYMENT OF CONTRIBUTION FOR Reference
EMPLOYMENT INSURANCE SYSTEM (EIS) & EMPLOYEES’ SOCIAL P.U(A)114 &
SECURITY (SOCSO) 115/2020

With effect from 6 April 2020, the payment of contribution for EIS and SOCSO
in respect of the month of April 2020 until the month of September 2020 has
been changed to last day of the following month.

Example
Remuneration Payment deadline
Period

01.04.2020 to 30.04.2020 31.05.2020

01.05.2020 to 31.05.2020 30.06.2020
01.06.2020 to 30.06.2020 31.07.2020
01.07.2020 to 31.07.2020 31.08.2020
01.08.2020 to 31.08.2020 30.09.2020
01.09.2020 to 30.09.2020 31.10.2020

C. UPDATED FAQs ON TAX MATTERS DURING MCO FAQs on tax matters

during the MCO period
(18 March 2020 to 14
The IRB has updated the FAQs on tax matters. We summarise the key April 2020) updated on 3
changes as below for your attention:- April 2020

1. CP204 payments due on 15 April 2020 has been extended to 30 April

2020.
2. Deferment of CP204 payment for SMEs for 3 months, starting April 2020
and deferment of CP500 payment (instalment for March 2020 and May
2020). Taxpayers do not need to pay the deferred payment. The balance of
tax (if any) has to be settled upon submission of the income tax return.

A SME is defined as:-

(i) a resident company in Malaysia with paid-up ordinary share capital of

RM2.5 million and below at the beginning of the basis period for the
relevant year of assessment and not more than:

1. 50% of the paid-up ordinary share capital of the company is directly

or indirectly held by a related company;
2. 50% of the paid-up ordinary share capital of a related company is
directly or indirectly held by the first mentioned company; or
3. 50% of paid-up ordinary share capital of the company and related
company directly or indirectly held by another company.

and

(ii) the gross business income (from one or more sources) of the company
does not exceed RM50 million for the relevant year of assessment.

Related company is defined as a company which has a paid-up ordinary

share capital of more than RM2.5 million at the beginning of the basis
period for a year of assessment.

3. Extension of time be given till 30 April 2020 for submission of Monthly Tax
Deduction (MTD) data and MTD payment for March 2020 remuneration.
4. Extension of time be given till 30 April 2020 for submission of all types of
tax estimate which are due from 18 March 2020 to 14 April 2020.

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Special updates - Prihatin Tambahan and Income Tax
Matter during Movement Control Order Period
5. Extension of time be given till 30 April 2020 for submission of Notice of Reference
Appeal to the Special Commissioners of Income Tax (SCIT) [Form 2].
IRB has further clarified that taxpayer is required to file Form N and state
that the delay is due to the implementation of MCO.

For more details, kindly refer to FAQs at:-

http://lampiran1.hasil.gov.my/pdf/pdfam/faq_2.pdf

D. GUIDELINES ON THE APPLICATION OF TAX DEDUCTION FOR DONATIONS

AND CONTRIBUTIONS TO COVID-19

The Ministry of Finance (MOF) has issued guidelines on the application of tax
deduction for donations and contributions to COVID-19 under Section 34(6)(h) of
the Income Tax Act 1967 (the Guidelines) to explain the conditions and
procedures for application of the said tax deduction.

After the donations / contributions has been made, a completed applications must
be submitted to the Tax Division of the MOF for approval.

Deduction under Section 34(6)(h) of the Income Tax Act 1967 and Section 44(6)
of the Income Tax Act 1967 are mutually exclusive.

The Guidelines are valid from February 2020 till the COVID-19 outbreak is
declared over by the Government.

The material contained in this Tax Update is general in the nature and are intended to serve as information purposes only.
The information is provided purely out of goodwill of Norvic Tax Services Sdn Bhd to ensure that our clients are aware and
constantly updated in income tax matters.

Although the information provided is composed and maintained with continuous care and attention by Norvic Tax Services
Sdn Bhd, however, no warranty is given in relation to the accuracy or reliability of any information in matters relating to
income tax.

This information provided is not intended as advice in any way or to be relied upon without any subsequent written
confirmation of its contents by Norvic Tax Services Sdn Bhd. Accordingly, user(s) are encouraged to contact Norvic Tax
Services Sdn Bhd for advice concerning any matters relating to income tax before making decisions.

Therefore, Norvic Tax Services Sdn Bhd disclaim all responsibility and accept no liability (including in negligence) and Norvic
Tax Services Sdn Bhd is under no circumstances responsible and/or liable for damages of howsoever and whatsoever
nature, in anyway resulting from the use of and/or related to the use of information and /or refraining from acting on the basis
of the information presented on or made available through our emails and/or damages resulting from the non-availability in
our tax update regarding any matters relating to income tax.
________________________________________________________________________________________

Norvic Tax Services Sdn. Bhd.

Registration No. 198101003890 (70004-T)
Wisma Goshen (3rd Floor), No. 60, 62 & 64, Jalan SS 22/21
Damansara Jaya, 47400 Petaling Jaya, Selangor
Tel: 603-7728 8485 Fax: 603-7728 9991
Email: info@norvictax.com.my

(As at 8 April 2020) Page 4