Did you know that the theme for Budget 2020 is "Driving Growth & Equitable Outcomes Towards Shared Prosperity"?
Let's see what new initiatives the government would introduce or extend especially in the areas of payroll.
📋 We’ve rounded up the key highlights for you:
1. Income tax rates review
- It is proposed that a new band for chargeable income in excess of RM2,000,000 be introduced and taxed at 30%. The table below illustrates:
2. Expansion of the income tax relief scope for medical expenses
- Resident individuals get income tax relief of up to RM6,000 on medical expenses for serious diseases regarding self, spouse and child.
- This tax relief will also be expanded to include expenses incurred on fertility treatment.
3. Increase in the limit of tax relief for fees paid to childcare centres and kindergartens
- Income tax relief of up to RM1,000 is currently given to resident individuals on the amount of fees paid to a childcare centre or kindergarten for children up to 6 years old.
- It is proposed that the tax relief be increased from RM1,000 to 2,000 per year.
4. Income tax exemption for another 4 years for women returning to work after a career break
- The current income tax exemption for women returning to work after a career break will be extended for another 4 years until 2023.
- These women who return to the workforce will receive a wage incentive of RM500 per month for 2 years.
Besides taxes and payroll, levelling up human capital is also one of the key highlights in Malaysia's recent Budget 2020. The Government will review the Employment Act 1955.
📋 Here is what they also proposed:
1. Increase of minimum wage
- Raising the minimum wage to RM1,200 per month for major cities.
2. Maternity Leave
- Increasing maternity leave from 60 days to 90 days effective 2021.
- Extending eligibility to overtime from those earning less than RM2,000 to those earning less than RM4,000 per month.
4. Sexual Harassment Protocol
- Improving protection and procedures for handling sexual harassment complaints.
5. Provisions on Discrimination
- Introducing new provisions on the prohibition of discrimination based on religion, ethnicity, and gender.
For the full Malaysia Budget 2020 speech, click here.