Micro, small and medium enterprises (MSMEs) will receive a one percentage point cut in income tax rates under Budget 2027, with 300,000 businesses expected to benefit.
Prime Minister Datuk Seri Anwar Ibrahim said the tax rate on the first RM150,000 of chargeable income will be reduced to 14% from 15%, while the rate for chargeable income between RM150,000 and RM600,000 will fall to 16% from 17%.
The reduction is expected to provide MSMEs with additional income of up to RM6,000 to help ease rising operating costs.
SMEs account for about 40% of Malaysia’s economy and employ around eight million people, or half of the country’s workforce.
