20% Corporate tax rate for SMEs which merge

On 14 February 2014, the International Trade and Industry Minister announced a flat rate of 20% for 5 years for Small-Medium Enterprises (SMEs) which merge (currently, SMEs only enjoy the reduced corporate tax rate of 20% for the first MYR 500,000 of chargeable income).
According to reports, applicants must be 100% Malaysian owned and must be SMEs with annual sales turnover not exceeding MYR 20 million or full-time employees not exceeding 75 workers.
In addition to the lower tax rate, M&A do…