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Summary of Highlights of Permai Assistance Package
On 18 January 2021, Prime Minister Muhyiddin Yassin has announced a new economic assistance package called the Perlindungan Ekonomi dan Rakyat Malaysia (Permai) package worth RM15 billion to mitigate the impact of COVID-19.
The package includes 22 new initiatives based on three main objectives – to combat the COVID-19 pandemic, to protect the people’s welfare and to support business continuity.
Highlights and Tax-Related Measures
Below are some of the highlights and tax-related measures of the key initiatives.
- Wage Subsidy Program 3.0 under SOCSO will be enhanced whereby all employers operating in the MCO states will be eligible to apply, irrespective of sector. For a period of one month, eligible employers will receive a wage subsidy of RM600 for each of their employee earning less than RM4,000. In addition, the wage subsidy limit of 200 employees for each employer will be increased to 500 employees.
- Continuation of the Prihatin Special Grant. 500,000 SMEs in the seven MCO states with a payment of RM1,000 each, while 300,000 SMEs in other states will receive RM500 each.
- Special tax relief of up to RM2,500 on the purchase of mobile phones, computers and tablets which expired on 31 December 2020, will be extended for another year until the end of 2021.
- A sales tax exemption for locally assembled and imported passenger vehicles until 31 December 2020 be extended until 30 June 2021.
- Special deduction for rental discount given to SME tenants which were given previously is now expanded and extended to non-SME tenants and until 30 June 2021.
- The scope for tax relief for medical examination is expanded to include Covid-19 screening.
- The Human Resources Development Fund will exempt the employer levy for companies that are unable to operate during the MCO and CMCO periods.
For more information, please refer to Prime Minister’s speech here.