The Centre for Accounting, Banking and Finance (CABF) under the Faculty of Business and Finance organised the “Post-Budget 2023” talk on 3 April 2023 via Microsoft Teams.

Invited to deliver the talk was TW Group & Associates Managing Partner Keoh Teik Wah. Keoh has 25 years of experience in accountancy and consultancy. He is a member of the Chartered Tax Institute Malaysia (CTIM), Malaysian Institute of Accountants (MIA), ASEAN Chartered Professional Accountant (ASEAN CPA), and a Fellow member of the Association of Chartered Certified Accountants (ACCA).

The webinar aimed to provide a comprehensive review of the Malaysia 2023 budget to analyse the key changes and impacts on taxpayers and corporations. It also aimed to highlight current development and government incentives for the year 2023.

Keoh started his webinar by presenting the changes made to the Budget 2023 announcement, which was released on 24 February 2023. He explained several changes made in the Individual category that would have a significant impact.

He said, “The reduced tax rate for resident individuals will provide a tax savings of up to RM1,300 for those with chargeable income of RM100,000 or less. Additionally, the tax relief for medical treatment expenses will increase from RM8,000 to RM10,000 and will expand to include the cost of rehabilitation of neurodevelopmental disorders such as Autism, Down Syndrome, and Specific Learning Disabilities, limited to RM4,000.”

Keoh also gave an explanation about tax relief for voluntary contributions to EPF, tax relief for childcare centres or kindergartens, EPF contribution by the Government, and Bantuan for Youth. “The Bantuan for Youth includes the E-Tunai programme, offering RM20 credit to e-wallets for 18 to 20-year-olds. PTPTN loan repayment discounts of up to 20% for three months and a six-month repayment deferment are available for low-income borrowers. Applications start from 1 March 2023,” he added.

Moreover, Keoh mentioned that the government has announced several changes to the company tax rates and incentives. “The Micro Small and Medium Enterprises (MSMEs) are set to benefit from a reduced tax rate on chargeable income for the first RM150,000, which will be reduced from 17% to 15%, resulting in a tax savings of RM3,000. MSMEs that incur listing expenses up to RM1.5million on the ACE Market and LEAP market will be eligible for tax deductions. This tax incentive has been extended for another three years from the Years of Assessment 2023 to 2025, and has been extended to cover the Main market in Bursa Malaysia,” he elucidated.

He added, “To incentivise the use of low-carbon automobiles, the deductible rental amount for vehicles now includes deductions for rental of electric vehicles subject to a maximum of RM300,000. Employers who hire Technical, Vocational Education & Training (TVET) graduates from the vulnerable group or vulnerable people such as the disabled, homeless, ex-convicts and chronically unemployed will receive SOCSO incentives of RM600 per month for three months.”

Keoh also emphasised that the proposed additional taxes include the Capital Gains Tax and the Luxury Goods Tax. He stated for Capital Gains Tax, the government plans to hold engagement sessions with relevant parties to study the implementation of the tax for companies disposing of unlisted shares from 2024, while the Luxury Goods Tax is proposed to be introduced in 2023. The Luxury Goods Tax will be applicable on luxury goods of a certain value and type, such as luxury watches and luxury fashion items.

He added to encourage taxpayers to voluntarily disclose any irregularities or discrepancies in their tax filings, the government announced the Voluntary Disclosure Programme, which will grant 100% penalty remission from 1st June 2023 to 31st May 2024. “To support business automation and digitalisation, SME Digitisation Grant has been introduced, providing matching grants of up to RM5,000 to SMEs and small traders. Finally, stamp duty has been fixed at RM10 for education loans and scholarship agreements, while a 100% exemption is given to transfers of property by way of love and affection, limited to the first RM1 million of the property’s value,” he enthused.

The talk ended with a group photography session.