Setting Up a New Business (Company / Limited Liability Partnership)

Setting up a New Business (Company / Limited Liability Partnership)

In order to encourage the establishment of new Company / Limited Liability Partnership and transaction such as mergers and acquisition. A tax rebate of RM20,000 is granted for the first 3 years of assessment for newly incorporated Small and Medium Enterprise "SME" and commence business between 1 July 2020 to 31 December 2021.

Condition to be fulfilled:

a) The SME is registered under the Companies Act 2016 (MUST BE incorporated  or registered in Malaysia)

b) The SME has a paid up share capital of not more than RM2.5 million and total gross income from all source of business not exceeding RM50 million per year;

c) The income tax rebate up to RM20,000 per year of assessment incurred on capital expenditure  or operational expenditure for the year of assessment;

d) Any unutilised tax rebate should not be carried forward to the following Year of assessment;

e) The SME is required to use separate plant, equipment that were not transferred from any existing company or related companies;

f)  Where in any of the year of assessment (first 3 years) the Company / Limited Liability Partnership fails to fulfilled the above conditions, the amount of RM20,000 tax rebate should not be granted for that year of assessment and subsequent year of assessment.

WEF: YA2021