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On 31 May, Prime Minister, Tan Sri Dato’ Muhyiddin Yassin announced a RM40 billion Supplementary Strategic Programme to Empower the People and Economy (PEMERKASA+). PEMERKASA+ is the government’s latest initiative to tackle the economic impacts and help to alleviate the challenges faced due to the implementation of Full Movement Control Order (MCO) 3.0 starting 1 June until 14 June 2021.

The three main focus of PEMERKASA+ are:

PEMERKASA

Below are some of the highlights of the PEMERKASA+ package in supporting business continuity:

  1. One-month extension of Wage Subsidy Programme 3.0 offered to all affected economic sectors, with a limit of 500 employees per application.
  2. Three-months extension of 10% electricity bills discounts for hoteliers, theme parks, convention centres, shopping malls, local airlines offices, and travel agencies until September 2021.
  3. Six-months extension of special tax deductions to premise owners (equivalent to at least 30% of rental discounts given to small-medium enterprises (SMEs) and non-SMEs tenants) until 31 December 2021.
  4. Inland Revenue Board (IRB) will consider appeals on penalties and defer penalty payments to 2022. IRB also provides rescheduling of outstanding tax payments for taxpayers and affected businesses.
  5. Extension of deadlines for submission of financial statements and convening of annual general meetings for public listed companies, and moratorium on fines for the late submissions of statutory documents.
  6. Exemption to micro-SMEs, sole proprietorships, and partnerships from being compounded due to late business license renewals, until 31 December 2021.
  7. Exemption of Human Resource Development Fund (HRDF) Levy for June 2021 for companies registered with the Human Resource Development Corporation (HRDC).
  8. SMEs that are not allowed to operate during MCO 3.0 are given the option of automatic approval for a 3-months bank moratorium or a 50% reduction in loan repayments for six months.

The Summaries below provide a good overview of the PEMERKASA + assistance package:

  1. PwC TaXavvy, Issues 11-2021 | Tax Related Measures Under PEMERKASA+
  2. EY Tax Alert (Special Edition) | Supplementary Strategic Programme to Empower the People and Economy (PEMERKASA Plus)
  3. Baker Tilly Tax Bulletin, 2 June 2021 | PEMERKASA Plus Stimulus Package 
  4. KPMG | Special Announcement on the Additional Strategic Programme to Empower the People and Economy (“PEMERKASA+”)

 

Refer to PEMERKASA+ infographic here.

Full speech of the PEMERKASA + Assistance Package is available here.

Photo by Sarah Kilian on Unsplash.

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