ey-global-tax-policy-outlook-for-2015

Malaysia
2.5 Fiscal stimulus in 2015
2.6 Political landscape
• In the general elections held in May 2013, the ruling party
was returned to power and hence, no major tax policy
changes are expected. The National Transformation Policy
launched in 2010 will continue to be the catalyst for Vision
2020. To this end, strategies are being planned to become a
high-income, developed nation.
2.7 Current tax policy and tax administration
leaders
Tax policy leaders
•
Minister of Finance
•
Tax administration leaders
•
•
2.8 Key tax policy changes in 2015
•
service tax (6%).
• Corporate income tax will be reduced to 24% as of the YA
2016 as proposed in the 2015 National Budget. Small
and medium enterprises with paid-up capital in ordinary
conditions) will be taxed at 19% (reduced from 20%) on their
be taxed at 24% as of the YA 2016. This proposal has yet to
be gazetted.
• The tax rate for resident individuals on chargeable income
up to MYR100,000 is reduced by 1% to 3%. The tax rate
for resident individuals on chargeable income between
MYR100,001 and MYR400,000 is reduced by 1% to 2%, and
the tax rate on chargeable income exceeding MYR400,000
is reduced by 1% to 25% as of the YA 2015. The tax rate for
nonresident individuals is reduced by 1% to 25% as of the
YA 2015.
• The 2015 National Budget announced that customized
incentives for principal hubs will be introduced in 2015 to
increase the number of multinational companies’ global
to medical tourism, scholarships in vocational and technical
were announced.
• As of 2014, employees with employment income and their
certain conditions.
• In the 2015 National Budget announcement, as a tax relief
measure for individual taxpayers, the tax relief on medical
expenses will increase from MYR5,000 to MYR6,000, tax
relief for a disabled taxpayer or a taxpayer with a disabled
child will increase from MYR5,000 to MYR6,000 and
tax relief for the purchase of basic supporting equipment
will increase from MYR5,000 to MYR6,000. These relief
measures are intended to alleviate the cost of living.
128 | The outlook for global tax policy in 2015