Budget Malaysia 2022 has been announced! There were a lot of important topics involving the financial plans the government has in store for the country over the coming year. We have compiled 4 main points of the Budget in relation to the real estate industry, together with a quick summary of other essential highlights for your easy reference.
1. RPGT Tax Relief
The government no longer impose real property gains tax (RPGT) towards individual citizens, permanent residents and other companies from the sixth year and above, starting year 2022. Genuine homebuyers who plan to dispose off their property can proceed to do so next year without worrying about portion of their capital gain being deducted due to this additional tax burden, especially if coupled with the RPGT amendment introduced by the government under Budget 2020, whereby the RPGT imposed on the disposal of properties after a five-year period, by individual citizens and permanent residents, by setting the market value on 1 January 2013 as the property acquisition price for properties acquired before the said date, compared to the current base year of 1 January 2000. This means property owners will have lower tax payments especially to those who bought the property before 1 January 2000. 2. Houses for Malaysian Families
Every Malaysian family is entitled to a household as a life necessity. As such, the Government will continue to develop housing projects, especially for the low-income group with a total value of RM1.5 Billion. This provision is aimed in the hopes of continuing people-first housing programs and maintenance for their housing. 3. Housing Credit Relief Scheme for Micro, Small and Medium Enterprises The government will prepare guarantees up to the bank through the Housing Credit Relief Scheme in order to help gig workers, small business owners and farmers easier accessibility to house ownership.
4. Tax Relief For Building Owners and Business Spaces
Budget 2022 will provide special tax deduction until June 2022 to building owners or business spaces that provide rent reduction of at least 30 percent to tenants.
Some other points to take note of:
Deferment of income tax installment payment for PMKS (micro small and medium enterprises) for six months until 30 June 2022.
All businesses are allowed to amend the estimated income tax payable in the 11th month before 31st October 2022.
Accumulated losses can be carried forward for a period from a maximum of 7 consecutive years of assessment to a maximum of 10 consecutive years of assessment.
Here are some other important highlights brought upon the announcement, summarised as below:
The government expects Malaysia’s economy to grow between 5.5 percent and 6.5 percent next year.
The budget is supporting three main pillars which are; strengthening recovery, building resilience and driving innovation.
Special RM2,500 tax relief for the purchase of handphones, computers and tablets.
PTPTN borrowers get 10-15% discounts, depending on the chosen repayment option.
Tax deductions of RM2,000 to RM7,000 for upskilling courses.
JaminKerja initiatives to create 600,000 job opportunities with an RM4.8 billion allocation.
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Wesley Tan: +6017-688 9998
Jasone Gan: +6017-601 8899
Brandon Lim: +6016-416 9193
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