SMEs in corporate taxes should be lowered to 18%

Malaysian Chinese Business Association of SME survey team leader Kongling Long said that in order to reduce the burden on small and medium enterprises, he had the Ministry of Finance suggested that corporate tax for small and medium enterprises, the original and some 20% to 17% to 18%.

Kongling Long said he attended the recent 2010 Budget, the ad hoc group (Focus Group) talks, he put forward these proposals.

"I also suggested that the taxable profits of small and medium enterprises from the current 50 million ringgit, an increase to 100 million ringgit."

"Of course, I understand that at present can not be transferred to corporate taxes are too low, due to our introduction of consumption tax is now not yet (GST), the Government has no other source of revenue."

At the same time, he believed that the coming Budget, the Government is likely to cut corporate taxes, but the rate will not be significant.

"Since the past three years, the annual corporate tax reduced by 1% to 25% after the current year is a key year. The Government's next how to adjust the corporate tax, as well as the consumption tax when it will launch, are deeply concerned about."

He estimated that in 2010 the Budget, the Government will be the overall corporate tax and corporate tax for small and medium enterprises, respectively, cut 1% and 2%.

Income tax exemption amount should be increased to 10002

As for the personal income tax, he said: "The personal income tax and corporate tax adjustment is appropriate. If the reduction in corporate taxes, personal income tax should be reduced by about 1%."

Kong Linglong suggested that since all things prices, personal income tax exemption amount must also be from the current 8,000 ringgit, up to 10000 to 10002 ringgit ringgit. "Meanwhile, the taxable group (taxable bracket) must also be raised, so that low-income earners have a higher spending power, and thus help promote the country's economy."