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:
Below are some of the highlights of the PEMERKASA+ package in supporting business continuity:
- One-month extension of Wage Subsidy Programme 3.0 offered to all affected economic sectors, with a limit of 500 employees per application.
- 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.
- 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.
- 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.
- 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.
- Exemption to micro-SMEs, sole proprietorships, and partnerships from being compounded due to late business license renewals, until 31 December 2021.
- Exemption of Human Resource Development Fund (HRDF) Levy for June 2021 for companies registered with the Human Resource Development Corporation (HRDC).
- 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:
- PwC TaXavvy, Issues 11-2021 | Tax Related Measures Under PEMERKASA+
- EY Tax Alert (Special Edition) | Supplementary Strategic Programme to Empower the People and Economy (PEMERKASA Plus)
- Baker Tilly Tax Bulletin, 2 June 2021 | PEMERKASA Plus Stimulus Package
- 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.