KPMG: One-off tax on super profits shouldn't be a concern

KUALA LUMPUR: One-off tax on super profits for the Year of Assessment 2022 should not result in a significant change in mood for investors and businesses alike, Head of Tax at KPMG in Malaysia, Tai Lai Kok said today regarding the "Cukai Makmur” announced in Budget 2022.

"That said, it is absolutely critical that the government keeps to its word that it is really a "one-off tax” during this time of need,” he said.

Cukai Makmur is for companies with taxable income of up to the first RM100 million will be subject to income tax at the rate of 24 per cent and the remaining taxable income will be subject to income tax at the rate of 33 per cent for the year of assessment 2022.

" Many had speculated that a special windfall tax would be imposed on certain sectors that had enjoyed super profits in recent times as a result of the pandemic,” he said in reaction to Budget 2022 announced here today.

This one-off tax announced is not targeted at any specific sector but rather to non-small and medium enterprise (SME) companies that have chargeable income in excess of RM100 million.

While the first RM100 million will still be taxed at the standard 24 per cent tax rate, any excess will be taxed at a rate of 33 per cent.

"The very high threshold set for this tax to apply - i.e. RM100 million in chargeable income - is unlikely to affect most Malaysian companies and thus, will be applauded by the Malaysian public in general.” - Bernama