19 October 2020
Rental Waivers or Reductions
To reduce overhead costs, a 6-month waiver on rental payments has been granted on all premises owned by the Federal Government or their agencies. Similar waivers or discounts are granted to SMEs in the retail sector if they operate in premises owned by a government-linked company. Government-Linked Companies (GLCs) such as MARA, PETRONAS, PNB, PLUS and UDA as well as some State Government companies have agreed to waive or reduce rental on their premises, especially for SME retailers.
Where the business premises are privately-owned, landlords are under no legal obligation to waive or reduce the rental chargeable but those who do so may obtain a further tax deduction equivalent to the amount of rent forgone from April 2020 to June 2020 provided that their tenant is an SME and at least 30% of the original rental rate has been reduced for that period.
This proposal aims to ease the financial burden of SMEs which are located in premises owned by state and federal GLCs. It is also to encourage private premise owners to provide rental reduction for a period of at least 3 months during and after the period of the Movement Control Order.
Electricity Discount
A discount scheme on monthly electricity bills has been implemented for 6 months, commencing 1 April 2020. The rate of discount is:
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15% for hotels, travel agencies, domestic airlines, shopping malls, convention centres and theme parks
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2% for the industrial, commercial, and specified agricultural sectors
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Ranges from 2% to 50% for households
This summary is for information purposes only. Its contents do not constitute legal advice and should not be regarded as a substitute for detailed advice in individual cases. JC Legal is not responsible for any third-party content which can be accessed through the hyperlink provided in this summary.
For further information, please contact:
Hao Min Loo, Consultat, JC LEGAL
info@jcco-hk.com
