2 Nov 2017
MALAYSIA: 2018 Budget Focuses on Investment Incentives and Income Tax Cuts
The minimum level of venture capital investment in a start-up business is to be cut from 70% to 50% for the period 2018-2022. The change is one of a number detailed under the terms of the country’s 2018 budget, the first details of which were announced at the end of October.
Among the other proposals are moves to guarantee equivalent income tax deductions in all instances of start-up investment (up to an annual maximum of RM 20 million (US$4.7 million)). A number of existing income tax exemption entitlements, also relating to start-up investments, are also to be extended until 31 December 2020.
The budget also saw personal income tax rates cut by 2% for those earning between RM 20,000 and RM 70,000 per annum, while mandatory maternity leave in the private sector was extended from 60 to 90 days, bringing it in line with the public sector. Furthermore, developers of new office buildings will, in future, be obliged to provide on-site nursery facilities.