IRBM Updates FAQ on Special Deduction Allowed on Rental Reduction to SMEs and non-SMEs Tenants, 07 September 2021

Recently, the IRBM has released an updated FAQ related to the special deduction to property owners/landlords for rental reduction to small and medium enterprises (SMEs) and non-SMEs on 3 September 2021.

Special Deduction Period for Landlords

This particular deduction period for landlords is as under:

1. The period for a reduction in rental to SMEs tenants starts from 1^st-April-2020 to 31-December-2021
2. The period for the reduction in rental to non-SMEs tenants starts from 1^st-January-2021 to 31- December 2021 (The announcement was made in the PERMAI package)

For a period between January-2021 and December-2021, the small and medium enterprises SMEs tenants aren’t bound to provide the SME Status Certificate to their landlords. Especially, where the SME Corp Malaysia hasn’t yet issued such a certificate.

The deduction amount for landlords should be equal to the reduction in the rental amount provided to SMEs and non-SMEs. However, there is a condition that such reduction must not be less than 30% of the amount charged for the rental.