In line with the efforts of the Malaysian Government to contain the spread of COVID-19 outbreak, the Government has decided that with effect from 10 June 2020, all Malaysians and non-citizens having permission to enter Malaysia will need to undergo a mandatory self-quarantine period of 14 days upon arrival after they have been cleared from COVID-19 by the Ministry of Health and will be monitored through MySejahtera application. The latest process for arrival of PUS at an international entry point has been updated.

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EY is pleased to share the latest tax alert issue no. 9/2020.

Malaysian developments

• Pure equity holding Labuan entity exempted from minimum employee number requirement
• Automation Capital Allowance incentives extended
• Practice Note No. 3/2020: Clarification on Determining the Gross Income from Business Sources of not more than RM50 million, for a Company or Limited Liability Partnership
• Public Ruling No. 1/2020 – Tax Incentives for BioNexus Status Companies
• Public Rulings No. 2/2020 and 3/2020 – Tax Treatment of Stock in Trade

Overseas developments

• India Tax Administration extends applicability of transfer pricing safe harbor rules to financial year 2019-20
• Spain sends Mandatory Disclosure Rules Bill to Parliament for approval

As Malaysia enters the ‘Recovery Movement Control Order’ (RMCO) changes to previous regulations have been made. These latest editions of the Federal Government Gazette cover changes to the Prevention and Control Of Infectious Diseases act, and the removal of the quarantine stations. Read the full Gazettes below:

• Revocation of Declarations of Quarantine Stations 2020
• Prevention And Control Of Infectious Diseases (Measures Within Infected Local Areas) (No. 7) Regulations 2020
• Prevention And Control Of Infectious Diseases (Compounding Of Offences) (Amendment) (No. 7) Regulations 2020
• Prevention And Control Of Infectious Diseases (Amendment of First Schedule) Order 2020
• Prevention and Control Of Infectious Diseases (Declaration of Infected Local Areas) (Extension of Operation)  (No. 5) Order 2020

The Grantee invites submission of qualifications and proposal data (collectively referred to as the “Proposal”) from interested U.S. firms that are qualified on the basis of experience and capability to execute a Technical Assistance for the Iskandar Malaysia Urban Observatory.

USTDA’s grant to the Iskandar Regional Development Authority (IRDA) will fund technical assistance to support the development of the Iskandar Malaysia Urban Observatory (IMUO).  The Iskandar Region comprises five cities in the state of Johor and Malaysia’s southern development corridor bordering Singapore.  The IMUO will include a centralized data center, IT platform and command center to enhance regional planning, development and management based on real-time data and intelligence. The project represents a potential opportunity for U.S. suppliers of advanced analytics, cloud and platform services, and safety and security solutions. 

U.S. businesses interested in submitting proposals for the USTDA-funded technical assistance should visit the USTDA website at https://ustda.gov/business-opportunities.

The Government has steered the country through these challenging times by taking an approach focused on 6 key steps: Resolve, Resilience, Restart, Recovery, Revitalize and Reform. We have now passed the first 3 stages: Resolve entailed addressing and containing COVID-19 by implementing the MCO; Resilience focused on protecting lives and livelihoods through the PRIHATIN Economic Stimulus packages while recently in May, the country stepped into the Restart phase which witnessed the reopening of economic sectors in an orderly and controlled manner.

The Government now unveils PENJANA (Pelan Jana Semula Ekonomi Negara) or the National Economic Recovery Plan. This Government is committed to taking an inclusive and holistic approach to Malaysia’s economic recovery. Towards this end, PENJANA will focus on 3 key thrusts – Empower People, Propel Businesses and Stimulate the Economy. This booklet outlines the details of PENJANA’s initiatives.