KUALA LUMPUR: The tax rate for micro, small and medium enterprises (MSMEs) for the first RM100,000 in taxable income will be reduced from 17 per cent to 15 per cent, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
This reduction is expected to result in tax savings of up to RM2,000 for 150,000 MSMEs, he said while tabling Budget 2023 themed ‘Keluarga Malaysia, Makmur Bersama' in the Parliament today.
"Based on the 12th Malaysia Plan’s targets, the MSMEs are expected to contribute 45 per cent to the country’s Gross Domestic Product (GDP) and account for 25 per cent to the country's total exports by 2025,'' said Tengku Zafrul.
He added that the government will allocate RM1 billion to provide a one-off grant of RM1,000 to all registered MSME companies and registered taxi drivers, a move which is expected to benefit a million businesses. - Bernama