Tax cut for small enterprises helps remove ‘key barrier’ to growth
Accounting body CPA Australia says tax relief and expanded financing support will improve cash flow for small businesses.
Prime Minister Anwar Ibrahim announced tax reductions for micro, small, medium enterprises (MSMEs) in response to rising operating costs faced by SME entrepreneurs. CPA Australia member Tai Lai Kok stated that tax relief, combined with expanded financing support, could enhance cash flow and strengthen MSMEs' investment and expansion capabilities.
Anwar revealed that the government will lower income tax rates for MSMEs by 1% next year when presenting the 2027 budget. The tax rate on the first RM150,000 of chargeable income will decrease to 14%, while the rate for income between RM150,000 and RM600,000 will be reduced to 16%. CPA Australia chair Surin Segar noted that these tax measures acknowledge the need to support taxpayers managing rising living costs.
PwC Malaysia praised the budget for enhancing the Global Services Hub incentive, offering a 5% special tax rate for up to 30 years, which provides long-term certainty for businesses to establish regional headquarters, shared services, and treasury centers in Malaysia.
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- Tax cut for small enterprises helps remove ‘key barrier’ to growth freemalaysiatoday.com
