SAMENTA: SST Exemption Highlights Government Support For SMEs
KUALA LUMPUR, Jan 5 (Bernama) -- The Small and Medium Enterprises Association of Malaysia (SAMENTA) views the exemptions of Sales and Service Tax (SST) on office rentals for new companies and small and medium enterprises (SMEs) with revenue below RM1.5 million as a demonstration of government support for SMEs.
Its president, Datuk William Ng, said the reduction of the rental SST rate to six per cent will also provide immediate liquidity relief for urban SMEs struggling with high overheads.
"Furthermore, the one-year postponement of e-invoicing for companies with revenue of up to RM5 million provides crucial breathing space, helping prevent total compliance burnout for the nation’s largest segment of employers.
“We urge the government and our members to use this additional 12 months for transition readiness,” he said.
To ensure this breathing space is used effectively, SAMENTA has proposed establishing an SME Transition Academy to train certified officers in occupational safety and health, data management, and environmental, social, and governance (ESG) practices, helping SMEs shift from a mindset of 'fear of non-compliance' to one of 'capability for compliance.'
The association has also recommended that the government refine the RM1.5 million threshold by adopting a tiered approach for high-growth sectors with high revenue but razor-thin margins, such as retail and construction.
"We strongly urge SMEs that fall below the thresholds for both e-invoicing and SST on rentals not to lower their guard, but to use this period to prepare their workforce, processes, and systems for upcoming changes," he added.
-- BERNAMA