One-off tax on super profits shouldn't be a concern - KPMG

A one-off tax on super-profits for the Year of Assessment 2022 should not result in a significant change in the mood of investors and businesses, said KPMG.

“That said, it is absolutely critical the government keeps to its word that it is really a 'one-off tax' during this time of need,” said the Head of Tax at KPMG in Malaysia Tai Lai Kok today.

He was referring to the "Cukai Makmur" announced in Budget 2022 yesterday.

Cukai Makmur is for companies with taxable income where the first RM100 million will be subject to 24 percent tax.

The remaining taxable income will be subject to 33 percent tax for the year of assessment 2022.

“Many speculated that a special windfall tax would be imposed on certain sectors that enjoyed super-profits in recent times as a result of the pandemic,” said Tai.

“The very high threshold set for this tax to apply - i.e. RM100 million in chargeable income - is unlikely to affect most Malaysian companies and thus, will be applauded by the Malaysian public in general.”

- Bernama