On 5th June 2020, Malaysian Prime Minister YAB Tan Sri Dato’ Haji Muhyiddin bin Haji Mohd Yassin announced the RM35 billion Pelan Jana Semula Ekonomi Negara (PENJANA Short-Term Economic Recovery Plan). 40 initiatives were proposed in the effort to help stimulate the nation’s economy due to the adverse effects of the COVID-19 outbreak.
Among the initiatives, tax incentives were proposed to support the tourism sector during the COVID-19 pandemic. Besides proposing tourism tax exemption and the extension of service tax exemption for hotels, individual travellers can benefit from this Plan too!
In late February this year, it was announced under the 2020 Economic Stimulus Package, that Malaysians who travel locally can enjoy special personal income tax relief up to RM1,000.
And under the PENJANA Economic Recovery Plan that was recently announced on 5th June 2020, this incentive is further extended until 31st December 2021. Although further info regarding this incentive has not been released at the time of writing, but we’ll keep you posted. So, make sure to stay tuned for more updates!
Visit the Ministry of Tourism, Arts and Culture Malaysia’s official portal for a full statement.
As we witness the COVID-19 curve flattening in Malaysia, many businesses are back in operation with adherence to strict SOP as set by the government.
With the personal income tax relief of up to RM1,000 on domestic travel expenses, why not take the opportunity to travel within Malaysia and discover all the beautiful sights in our home country. Book that beachside resort staycation, rediscover the rich arts, culture and history of Malaysia, relish in mouthwatering local delicacies…the list goes on. There is so much you can do in Malaysia, and what’s more, you can enjoy tax exemptions at the same time.
Now is definitely the perfect time to Cuti-cuti Malaysia.
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Any interested party should study each situation carefully. You should seek and obtain independent professional advice for your specific needs and situation.
