13 October 2020
One-off special grant
It is proposed that micro-SMEs would be entitled to a special grant amounting to RM3,000. In order to enjoy the above special grant, the micro-SME must be registered with the Inland Revenue Board of Malaysia and a list of eligible micro-SMEs would be obtained from the Local Authorities and Companies Commission of Malaysia by the Government. While the term micro-SME is not defined in the speech, micro-SME is defined by SME Corporation Malaysia as “a micro enterprise with sales turnover of less than RM300,000 or employees of less than 5”.
This proposal aims to benefit over 700,000 micro-SMEs all over the country. It would assist SMEs in managing their cashflows.
Moratorium on Loan Repayments
SMEs have also been granted an automatic 6-month moratorium on the repayment of bank loans (except credit card balances) from 1 April 2020. Banks are also encouraged to grant similar moratoriums to corporate borrowers. In this regard, banks that grant such moratoriums will be taxed on the interest income accruing on affected loans only upon actual receipt of the interest, i.e. after the expiry of the moratorium period.
In appreciation of the banking institutions’ support, it is proposed that the interest income or profit from the loan of the bank institution will only be taxable upon receipt of the income after the moratorium period.
For further information, please contact:
Hao Min Loo, Consultat, JC LEGAL
info@jcco-hk.com
