2018 Malaysian Budget Highlights
The 2018 Budget was announced by the Prime Minister on 27 October 2017. Themed “Prospering an Inclusive Economy”, measures were introduced to benefit targeted interest groups rather than the mainstream business sectors. A total of RM280.25bil has been allocated for Budget 2018, an increase of RM19.45bil over the 2017 budget allocation of RM260.8bil.
The 2018 Budget had eight main thrusts, namely:
Invigorating Investment, Trade and Industries
Towards TN50 Aspiration (the 2050 National Transformation)
Empowering Education, Skills and Trainings, and Talent Development
Driving Inclusive Development
Prioritising the Wellbeing of the Rakyat and Provide Opportunities to Generate Income
Fortifying the Fourth Industrial Revolution and Digital Economy
Enhancing Efficiency and Delivery of Government- Linked Companies and Public Service
Balancing between the Par Excellence of the Worldly and Hereafter
How will Budget 2018 affect your business and you personally?
Discover more: Key tax highlights arising from the 2018 Budget
Withholding Tax on Services Rendered Outside Malaysia
Further to INSIGHTS Vol 5. 2017, please note that the gazette order relating to the exemption of withholding tax for services which are rendered and performed outside Malaysia was issued on 24 October 2017 via the Income Tax (Exemption)(No.9) Order 2017. This exemption is applicable to services rendered from 6 September 2017 onwards.
However, where services were rendered outside Malaysia during the period 17 January 2017 to 5 September 2017, withholding tax will continue to apply.