Mind map on Tax Incentives in Budget 2021
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This mindmap is about the tax incentives proposed in Budget 2021.
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Outline


Tax Update
Exemption of 50% for investment
Limited to RM50k / 10% of aggregate income
Implications
Encourage startups
Promote job opportunities
Increase country's tax revenue

Background
100% of qualifying CAPEX allowance till 31 Dec 2020
Tax Update
Extended to 2022
Implications
Encourage upgrading of better medical equipment
Purchase of Covid-19 related equipment
Criticism
Exemption only to company concerned

Tourism Tax
Tourism tax should be extended to 2022
Property tax rebate

Eg: Singapore 100% property tax rebate
Tax Rebate for
Retaining Employees

Eg: U.S. CARES Act
Tax credit at 70% of
qualified wages
Rebate for
High Tech Startups
Propose a tax exemption up to 70%
Example: UK's R&D tax credit

Background
RM 10 per night
Tax Update
Exempted from July 2020 to June 2021
Implications
Encourage local travelling
Provide jobs
Criticism
Might not be sufficient to boost tourism

Background
Current limit at RM5,000
Tax Update
Increased to RM8,000
Implications
Receive quality medical treatment
Relieve burden on healthcare bills
Boost revenue of healthcare sector

Background
Government losing RM5 billion to illicit market
Tax Update
10% excise duty on electric &
non-electric cigarettes
Impose indirect taxes on duty free islands
Implications
Reduce consumption on tobacco
Save on cigarette-related health expenses
Increase in productivity