Budget 2027: SMEs to gain up to RM6,000 each from income tax cuts

KUALA LUMPUR, Oct 9 — Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysia's 300,000 micro, small and medium enterprises (MSMEs) could benefit from up to RM6,000 each in income tax cuts. In response to rising operating costs, the government will reduce income tax rates by one percentage point for these businesses. For incomes of up to RM150,000, the tax rate will decrease to 14 percent, while the rate for incomes between RM150,000 and RM600,000 will fall to 16 percent.

Anwar also proposed measures such as raising the limit for small value assets eligible for capital allowance to RM3,000, and allowing non-MSMEs to claim up to RM30,000 in overall capital allowance. Additionally, the government plans to extend the existing Accelerated Capital Allowance on plant, machinery, and ICT equipment until December 31, 2030, and propose a one-ringgit stamp duty for loans from peer-to-peer platforms and full stamp duty exemption for opening savings and current accounts, both starting from January 1, 2027.