KUALA LUMPUR: The government will create a new tax scheme for companies from next year with the aim of reducing the income tax rate in stages.
The scheme will be implemented specifically for the years of assessment 2017 and 2018, Prime Minister Datuk Seri Najib Tun Razak said when tabling the Budget 2017 in Parliament yesterday.
He said under the new scheme, companies will see a reduction of one percentage point for an increase of between five and 10 per cent.
“Two percentage points for an increase in chargeable income of between 10 per cent to below 15 per cent, three percentage points for increase in chargeable income of between 15 per cent to below 20 per cent and four percentage points for an increase in chargeable income of 20 per cent,” he added.
The scheme was created to assist in reducing the business costs and encourage businesses to work harder to increase their taxable income, particularly in the current global challenging economic environment. — Bernama