PERSONAL TAX RELIEF 2025

• Childcare Relief
  • Individual income tax relief up to RM3,000 for childcare centres and kindergartens will be extended until year of assessment 2027.
• Skim Simpanan Pendidikan Nasional Relief
  • The Skim Simpanan Pendidikan Nasional (SSPN) tax relief up to RM8,000 will be extended until year of assessment 2027.
• Education and Medical Insurance Relief
  • Education and medical insurance relief will be increased to RM4,000.
  • Starting from the year of assessment 2025.
• Private Retirement Scheme Relief
  • Deferred Annuity and Private Retirement Scheme (PRS)tax relief up to RM 3,000 will be extended until year of assessment 2030.
• Disabled Individual Relief
  • Further tax relief for disabled individual will be increased to RM7,000.
  • Further tax relief for individual with a disabled spouse will be increased to RM6,000.
  • Further tax relief for individual with unmarried disabled children will be increased to RM8,000.
  • Starting from year of assessment 2025.
• Housing Loan Interest Relief
  • Tax relief on the interest payments for the first residential home loan:
    • UP TO RM 500,000 – RM 7,000
    • ABOVE 500,000 TO 750,000 – RM 5,000
  • For the sales and purchase agreement executed from 1 January 2025 until 31 December 2027.
  • *Terms and conditions applied
• 2% Dividend Tax on Individual Shareholders
  • Annual dividends income exceeding RM100,000 will subject to a 2% dividend tax.
  • Starting from year of assessment 2025
• Domestic Food Waste Composting Machine Relief
  • Tax relief up to RM2,500 for electric vehicle (EV) charging facility will be expanded to include purchase of food waste composting machines for household use from year of assessment 2025 until 2027.
• Foreign Sources Income by Individuals
  • The tax exemption on foreign source income (FSI) received by individuals in Malaysia will be extended until December 31, 2036. This extension is part of the government’s ongoing efforts to attract foreign investments and support Malaysian expatriates by providing favorable tax conditions​.

• Medical Expenses Relief
  • Starting from the Year of Assessment 2025, tax relief for medical treatment expenses will be expanded to include costs for purchasing self-testing medical devices and fees for disease detection examinations conducted at clinics or hospitals. This relief is capped at RM1,000 and applies to expenses incurred for the taxpayer, their spouse, and children.
  • Starting from the Year of Assessment 2025, the tax relief for assessment and diagnosis, early intervention programs, and continuous rehabilitation treatment for children under 18 will increase to RM6,000. This enhancement aims to support families in managing the costs associated with necessary medical and therapeutic services for children, especially those with special needs or disabilities.
  • Starting from the Year of Assessment 2025, tax relief for medical expenses will be expanded to include a portion of medical payments made by taxpayers under medical and health insurance and takaful products that feature co-payment options. This relief is capped at RM10,000 and is designed to alleviate the financial burden of healthcare costs for taxpayers.
• Sport Activities, Health and Elderly Care Relief
  • Individual Income Tax Relief
    • Sports Equipment and Activities: The existing tax relief for sports equipment and activities, capped at RM1,000, will now be extended to include expenses incurred by parents. This encourages parents to promote sports participation among their children.
    • Medical Check-up Expenses: The tax exemption for full medical check-up expenses for parents, also limited to RM1,000, will be expanded to cover vaccinations. This aligns with public health initiatives aimed at improving preventive care for the elderly.
    • Medical and Parental Care Expenses: The relief for medical treatment and special needs expenses will be broadened to include costs associated with the care of grandparents. This reflects a growing recognition of the importance of supporting multi-generational families and ensuring comprehensive care for elderly family members.
  • Individual Income Tax Exemption
    • Starting from the Year of Assessment 2025, the income tax exemption of up to RM3,000 per year currently given for childcare allowances provided by employers will be expanded to include elderly care. This means employees will now receive tax exemptions not only for childcare but also for care provided to their parents or grandparents. This is a great step forward in supporting both family and elder care, helping ease the financial burden on working individuals.
• Exemption on Sport Reward
  • A tax exemption will be granted on cash prizes won by individual and team athletes through the Victory Prize Scheme (Skim Hadiah Kemenangan Sukan) provided by the government via the National Sports Council of Malaysia (Majlis Sukan Negara, MSN). This exemption aims to encourage and reward sporting excellence among Malaysian athletes.

CORPORATE TAX

• Tax Incentives for Implementation of E-Invoicing
  • From the Year of Assessment (YA) 2024 to YA 2025, businesses will be able to benefit from accelerated capital allowances for the purchase of ICT equipment, software, and associated consulting fees. These allowances can be claimed within a two-year period, allowing businesses to recover their investments in digital tools and services more quickly.
• Extension of Tax Deduction for Sponsorship of Smart Artificial Intelligence Driven Reverse Vending
  • To promote plastic waste recycling and boost recycling rates, tax deductions for sponsoring Smart AI-Driven Reverse Vending Machines will be extended for an additional two years. This extension will be in effect from January 1, 2025, until December 31, 2026.
• Tax Incentive for Employers Implementing Flexible Work Arrangements (FWA)
  • Employers who submit applications to Talent Corporation Malaysia Berhad between January 1, 2025, and December 31, 2027, will be eligible for an additional 50% tax deduction on expenses related to capacity building and software acquisition for implementing Flexible Working Arrangements (FWA). This deduction is capped at RM500,000 and can only be claimed once.
• Tax Incentive for Hiring Women returning to work
  • Employers who submit applications to Talent Corporation Malaysia Berhad between January 1, 2025, and December 31, 2027, will qualify for an additional 50% tax deduction on employment expenses for hiring women who are returning to the workforce. This deduction applies for up to 12 months.
• Tax Incentive for Employers Providing Caregiving Leave Benefits
  • Employers who offer additional paid leave of up to 12 months to employees serving as caregivers will be eligible for an extra 50% tax deduction. This incentive is available from January 1, 2025, through December 31, 2027.
• Tax Deduction on the Cost of Developing New Courses at Private Higher Education Institutions (PHEIs)
  • Starting from the Year of Assessment (YA) 2025 until YA 2030, private higher education institutions (PHEIs) are eligible for a tax deduction on the costs incurred in developing new courses, which can be claimed in the same assessment year. This deduction has been expanded to also cover the development of Technical and Vocational Education and Training (TVET) courses by private skills training institutions.
• Benefits given to Technical and Vocational Education and Training (TVET) sector
  • Effective from the Year of Assessment (YA) 2025 to YA 2027, tax deductions will be available for the donation of new equipment and machinery to registered Public Skills Training Institutions (ILKA), polytechnics, or vocational colleges. This initiative aims to encourage businesses to contribute to the development of technical and vocational education by supporting these institutions with essential resources​. This tax incentive is part of a broader strategy to enhance skills training and workforce development in Malaysia, promoting collaboration between the private sector and educational institutions​.
• Enhancement of TVET education and training opportunities by Human Resource Development Corporation (HRD Corp) through implementation of MADINI Training Program
  • Employers will be able to utilize the Human Resources Development Corporation (HRDC) levy to provide allowances of up to RM1,000 per year for graduates participating in skills training programs through HRD Corp. This initiative is designed to encourage employers to invest in the development of their workforce by supporting graduates as they gain essential skills and experience​. By leveraging HRDC levy in this manner, employers can enhance their training programs while fostering a skilled labor market that meets the needs of various industries.
• Accelerated Capital Allowance (ACA) and Income Tax Exemption on Qualifying Capital Expenditure on Automation Equipment
  • The Malaysian government is implementing a tax incentive that offers Accelerated Capital Allowance (ACA) of 100% on qualifying capital expenditures related to automation equipment in the manufacturing, service, agriculture, and commodity sectors. This includes an income tax exemption on the same qualifying expenditure. This initiative aims to encourage companies to invest in advanced technologies, such as drones and artificial intelligence (AI), particularly in agricultural operations. By doing so, businesses can enhance productivity and efficiency while reducing their reliance on foreign labor​. These measures are part of the government’s broader strategy to modernize the workforce and enhance technological adoption across various industries.
• Improvement of educational access for students from underprivileged family
  • Payments made to educators by institutions or organizations that have educational objectives and are approved under subsection 44(6) of the Income Tax Act will be considered welfare expenditure. This classification allows these payments to be deducted as expenses, thus reducing the taxable income of the institutions involved. This change aims to encourage organizations to invest in educational staff and improve the overall quality of education in Malaysia. By recognizing these payments as welfare expenditures, the government is fostering an environment that supports educators and promotes educational initiatives.
• Expansion of Child Care Allowance to Include Elderly Care
  • Effective from the Year of Assessment (YA) 2025, employers will be able to claim further tax deductions on childcare allowances paid to employees, which will now also include allowances for elderly care, specifically for parents and grandparents. This change aims to support employees who are caring for both young children and elderly family members, acknowledging the increasing responsibilities many individuals face in balancing work and family care.
• Double Deduction for Structured Training Programs (MySIP)
  • The double deduction on expenses incurred by companies participating in the Structured Training Program (MySIP) under Talent Corporation will be extended to include students undergoing structured training by industry regulatory bodies. This extension will remain in effect until the Year of Assessment (YA) 2030. This initiative is aimed at encouraging companies to invest in training programs that equip students with the necessary skills and experience, thereby enhancing their employability and bridging the skills gap in the workforce​. By providing these deductions, the government seeks to promote collaboration between industries and educational institutions, ensuring that training programs align with industry needs
• Tax Incentive for Hiring Disabled Person (OKU) and Ex-Convicts
  • Employers who hire people with disabilities (OKU) and ex-convicts will receive an incentive of RM600 per month for a total of three months, managed by the Social Security Organization (SOCSO). This initiative aims to encourage businesses to provide employment opportunities for these groups, promoting inclusivity and social responsibility within the workforce​. The program is designed to ease the transition into the job market for individuals who may face barriers to employment, helping them gain valuable work experience while also supporting employers in their hiring efforts.

About E-Invoicing

An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.
An e-Invoice contains the same essential information as traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.

Benefit of E-Invoice

The implementation of e-Invoice not only provides seamless experience to taxpayers, but it also improves business efficiency and increases tax compliance. Overall benefits include:

Overview of the e-Invoice Model

To facilitate transition to e-Invoice, taxpayers can select the most suitable mechanism to transmit e-Invoices to IRBM, based on their business requirements and specific situation.

There are two (2) options for the e-Invoice transmission mechanisms for taxpayers selection:

1. MyInvois Portal
   • A portal hosted by IRBM
   • Accessible to all taxpayers at no cost
   • Also accessible to taxpayers who need to issue e-Invoice where Application Programming Interface (API) connection is unavailable
     
     
2. Application Programming Interface (API)
   • An API is a set of programming code that enables direct data transmission between the taxpayers’ system and MyInvois system
   • Requires upfront investment in technology and adjustments to taxpayers existing systems
   • Ideal for large taxpayers or businesses with substantial transaction volumes

The figure below demonstrates an overview of the e-Invoice workflow from the point a sale is made or transaction is undertaken, and an e-Invoice is issued by the supplier via MyInvois Portal or API, up to the point of storing validated e-Invoices on IRBM’s database for taxpayers to view their respective historical e-Invoices.

E-Invoice Implementation Timeline

e-Invoice will be implemented in phases to ensure smooth transition. The roll-out of e-Invoice has been planned with careful consideration, taking into account the turnover or revenue thresholds, to provide taxpayers with sufficient time to prepare and adapt to the e-Invoice implementation.

Below is the e-Invoice implementation timeline:

Economy and investments

• GLCs and GLICs to allocate RM1.5 billion to support startups involved in high-growth, high-value areas.
• RM100 million for the Malaysia Co-Investment Fund scheme (MyCIF) over three years to support initiatives related to the environment, society, food security and the state Islamic religious councils.
• RM20 million to support research in the innovation of the Islamic economy.
• RM30 million to draw investments from video game companies.
• RM28 million to set up MYStartup as a one-stop centre to support startups.
• RM10 million for MyCC and domestic trade and cost of living ministry to fight profiteering.

Development and utilities

• RM2.8 billion to repair federal roads and bridges.
• RM2.47 billion to build people’s housing projects.
• RM2.4 billion for the construction and maintenance of government quarters.
• RM1.63 billion to build and upgrade roads in rural areas in Kelantan, Perlis, and Negeri Sembilan.
• RM1.1 billion to resolve water supply issues in Kelantan, Sabah and Labuan.
• RM939 million to supply water to 5,150 homes and electricity to 2,200 homes.
• RM150 million to maintain and repair public toilets nationwide.
• RM50 million in matching grants to maintain Port Klang roads.
• RM30 million for district engineers for minor repairs and maintenance of federal roads. Each engineer will be allocated RM200,000.
• RM20 million for 150 local councils to maintain and repair drainage.

Subsidies

• Diesel subsidy to be rationalised in phases.
• RM55 million for electricity subsidies of up to RM40 a month for the hardcore poor.
• Government to continue rationalising electricity subsidies.
• Targeted subsidies will be implemented in stages, with savings going towards a bigger allocation for Rahmah cash aid. The allocation for this initiative will be increased from RM8 billion to RM10 billion.

Taxes

• Service tax to be increased from 6% to 8%. This will not apply to the food and beverage as well as telecommunication industry.
• Putrajaya will enact a law to facilitate the collection of a 5% to 10% luxury tax. It will not apply to foreign tourists.
• 10% capital gains tax to be introduced from March 1. This applies to the sale of shares for non-listed local companies.
• The government is mulling a capital gains tax on profits from specific stock market activities, including IPOs.
• Government expects to implement a global minimum tax in 2025, on companies with a global income of at least 750 million euros.
  Mandatory use of e-invoice for taxpayers with annual income or sales over RM100 million from Aug 1, 2024.
• Government to improve stamp duty collection, strengthen tax administration, widen social protection coverage, and restructure development financial institutions (DFIs).
• Tax incentives to attract investments in the form of tiered investment tax allowances of either 70% or 100%.
• Special tax incentives for investments in Pengerang Integrated Petroleum Complex (PIPC).
• Tax incentives for those investing in startups and angel investors until Dec 31, 2026.
• Tax incentives for women who return to the workforce extended to Dec 31, 2027.
• Tax exemption for those involved in Islamic securities selling and buying.
• Five-year tax exemption for Labuan companies involved in Islamic finance.
• The RM2,000 tax break for upskilling courses is extended until 2026.
• This incentive now also covers language, photography and sewing courses.
• The government offers an income tax rate of up to 10% for film production companies, foreign actors, and crew who film in Malaysia.
• Government to increase income tax exemption ceiling from RM2,400 to RM3,000 for childcare allowances.
• 4% stamp duty for property transfers by non-citizens and foreign firms. This doesn’t include permanent residents.

Education

• RM58.7 billion for the education ministry.
• RM1.9 billion to upgrade schools.
• RM2.5 billion to build 26 new schools in Sabah, Sarawak, Pahang, Perak and Kelantan.
• RM180 million to construct 18 new special education blocks in schools in Kedah, Penang and Perlis.
• RM150 million to expand aid for poor students up to Form 3, compared to up to Form 1 previously. This will benefit one million students.
• RM100 million to upgrade and maintain computer labs in schools.
• RM100 million for students who dropped out of school amid the pandemic.
• RM82 million to build 26 new pre-schools under the education ministry in Sarawak, Pahang, Melaka.
• RM30 million to provide disabled students with special devices and facilities.

Higher education

• RM16.3 billion for higher education.
• RM250 million to improve WiFi access in all public varsities.
• RM300 million to improve infrastructure in local universities.
• RM5 million to support 5,000 students to access life-long learning programmes in community colleges.
• RM20 million to set up the country’s first AI facility in Universiti Teknologi Malaysia.
• Government to give between 10% to 15% discount on PTPTN loans.
• Entrance fees for public varsities are capped at RM1,500.
• Students who cannot afford to pay their tuition fees will not be barred from registering for courses.

Health

• The health ministry allocated RM41.2 billion.
• RM5.5 billion was allocated for medicines and vaccines.
• Over RM1 billion to build new development projects in various hospitals in Johor, Kelantan, and Selangor.
• The government will support Sarawak’s plans to develop its own cancer institute.
• RM766 million to replace medical equipment which is deemed “beyond economic repair”.
• RM300 million to repair 400 dilapidated health clinics.
• RM200 million to outsource treatment to private hospitals.
• RM150 million to maintain IT systems under the health ministry, including the Clinic Management System Subscription (CCMS) at 100 government health clinics.
• RM130 million for health screenings and vaccinations for pregnant women.
• RM100 million to expand Madani medical scheme nationwide, to benefit 700,000 people.
• The government increases the sugar tax from 40 sen a litre to 50 sen a litre.
• Government to impose 5% excise duty on chewing tobacco.

Security

• RM19 billion for the home ministry.
• RM20 million set up a single border agency.
• An additional RM10 million to help Malaysians who fall victim to overseas syndicates.
• An additional RM10 million to support the National Scam Response Centre.
• Bank Negara Malaysia to develop a national fraud portal by mid-2024.
• More security assets to be deployed at maritime borders.
• Government to strengthen measures to combat smuggling of contraband.

Defence

• RM19.7 billion for the defence ministry.
• Government to start the procurement process for 12 new military helicopters, 60 armoured vehicles, 50 light tactical vehicles, six hovercrafts, 733 support vehicles, seven light police aircraft, and five police helicopters.
• RM400 million to maintain and repair family homes of servicemen.
• RM20 million to upgrade the sewerage system in army camps in phases.

Environment

• Financial institutions to allocate RM200 billion in loans to support industries to reduce carbon emissions.
• Tax cuts for entities that sponsor tree planting or hold environmental preservation projects.
• Up to RM1 billion sukuk issuance to support reforestation.
• RM10 million to those who suffer financial losses caused by wild animals.
• RM60 million to increase the number of community rangers to protect permanent forest reserves against loggers and poachers.
• RM200 million for the Ecological Fiscal Transfer for Biodiversity Conservation.
• Up to RM300,000 in tax cuts for companies spending on measurement, reporting and verification of carbon projects.
• RM563 million to rehabilitate over 2,000 high-risk slopes nationwide.

Social welfare

• RM10 billion for the Rahmah cash aid programme. This will benefit nine million people or 60% of Malaysian adults.
• The maximum Rahmah aid is increased from RM3,100 to RM3,700, while the minimum amount for youths has been increased from RM350 to RM500.
• The government is to expand the Sumbangan Asas Rahmah programme by crediting RM100 each month for a year to 700,000 Rahmah aid recipients.
• RM2.4 billion for the welfare department. This will benefit 450,000 people, including the hardcore poor, elderly, children and the disabled.
• RM1.2 billion in various aid for the disabled.
• RM1 billion to ensure the welfare of the elderly.
• Eligibility for welfare aid has been revised in line with the new poverty line of RM1,198 a month.
• RM500 million for the expansion of the IPR programme.
• RM200 million to continue the Payung Rahmah programme.
• RM100 million for Amanah Ikhtiar Malaysia to eradicate poverty.
• RM100 million to support NGOs helping the rakyat.
• RM10 million for a second chance programme for ex-convicts.
• Allowances for disabled trainers raised to RM300 from RM150.
  Proceeds from the sale of special number plates will be channelled to the less fortunate. This includes test fees for motorcycles, e-hailing and taxis.
• A new EPF account known as the “Flexible Account” will be introduced. This new account can be accessed by contributors at any time.
• RM50 million for a social security scheme for housewives. This will benefit 400,000 women registered under e-Kasih.
• 35,000 children to benefit from the expansion of the Biasiswa Kecil Persekutuan programme, including households earning less than RM2,589 a month.
• RM1,000 in incentives for pensioners, including veterans without pensions. This will be paid in February

Jobs and community support

• RM6.8 billion for TVET.
• RM1 billion for the Madani community development programme for grants of up to RM100,000 for community initiatives.
• RM586 million for the community development department (Kemas).
• RM100 million to support TVET certification.
• RM180 million in TVET study loans. This will benefit 12,000 people.
• RM100 million for Chinese New Villages.
• RM100 million for cooperatives through the Cooperative Commission of Malaysia.
• HRD Corp to use 15% of levies collected for retraining and reskilling of entrepreneurs, ex-convicts, the disabled, senior citizens and retirees.
• RM70 million for the Academy in Industry programme to support skills training.
• RM50 million for registered non-Muslim houses of worship.
• RM35 million for training and income replacement incentives for 9,000 gig workers.
• RM30 million in incentives for companies to train locals.
• RM31 million for 10 new tabika and taskas in Terengganu, Negeri Sembilan and Johor.
• RM20 million to upgrade Kemas pre-school premises.
• RM20 million for Rukun Tetangga.
• RM20 million in grants for local communities to organise volunteering, unity, and crime prevention programmes.
• Socso to provide a special incentive of RM1,500 a month for six months to support over 3,300 job seekers. RM30 million is allocated for this initiative.
• The government is to introduce the Madani Foster Village programme, which will involve GLCs, GLICs and the private sector.
• The salary ceiling to qualify for the occupational hazard scheme increased from RM4,000 to RM6,000.

Rural communities

• RM26 million for social initiatives for those in rural areas. This includes mobile health and dental clinic services as well as mobile court services.
• RM333 million for Orang Asli. This includes entrepreneurship and replanting programmes.
• RM96 million to support shuttle bus services in rural areas.

Civil Service

• A review of civil servants’ salary scheme will be finalised by the end of 2024.
• In the meantime, RM2,000 in preliminary incentives is to be distributed to civil servants in Grade 56 and below, including contract workers.
• Uniformed personnel to receive RM1,000.
• RM1,000 in incentives for pensioners, including veterans. This will be paid in February.

Transport

• Prasarana to spend RM600 million to procure 150 electric buses and three new bus depots to support LRT3.
• RM209 million to subsidise rural air transport in Sabah and Sarawak.
• RM150 million for bus transformation programme.
• RM134 million to install 60,000 streetlamps and maintain over 500,000 streetlamps on rural roads.
• RM100 million to change streetlamp bulbs to LED bulbs.
• RM50 million for local councils to switch to LED streetlamps.
• RM50 million to install smart traffic lights in congestion and accident-prone areas.
• RM47 million to improve passenger facilities and extend the runway at the Tioman airport.
• RM20 million in matching grants to upgrade the Malaysia Maritime Single Window (MMSW).
• RM2,400 in rebates for those earning less than RM120,000 a year who purchase electric motorcycles.
• Government to extend RM2,500 tax exemption for EV charging expenses.
• 100,000 child helmets to be distributed to poor families.
• RM4.7 billion to resume the construction of 5 LRT3 stations that were previously cancelled, namely the Tropicana, Raja Muda, Temasya, Bukit Raja and Bandar Botanic stations.

Commodities

• The government to expand tax incentives for automation to cover the commodities sector.
• RM2.4 billion for Felda, Felcra and Risda.
• RM400 million to increase rubber production incentive from RM2.70 per kg to RM3 per kg.
• RM100 million for palm oil replanting. This will benefit 7,000 smallholders.
• RM90 million for Risda and Felcra to encourage settlers to optimise land use.
• RM70 million to support palm oil industry sustainability programmes.

Industries and businesses

• Miti and MIDA to improve ease of doing business.
• RM200 million to catalyse the New Industrial Master Plan (NIMP) 2030. 10% of future investments under NIMP will also be utilised for this purpose.
• Government to develop a high-tech industrial park in Kerian, Perak.
• RM1.6 billion in loans and guarantees for Bumiputera entrepreneurs.
• Bumiputera investment institutions will be centralised under Yayasan Pelaburan Bumiputera.
• RM25 million in matching grants to produce more entrepreneurs under the i-TEKAD initiative.
• RM10 million to support franchises with export markets.
• RM40 million to support the Shop Malaysia Online programme.
• RM27 million to support the Buy Malaysian campaign.

SMEs and micro businesses

• RM44 billion in loan and financing facilities for micro SMEs. This includes RM1.4 billion for microloans from BSN, RM330 million in loans from Tekun Nasional, RM720 million for women and youth entrepreneurs and RM30 million for Indian businesses.
• RM20 billion for Syarikat Jaminan Pembiayaan Perniagaan Berhad to guarantee loans for SMEs involved in the green economy, technology and halal sectors.
• RM900 million for loans from BNM to help SMEs digitalise and automate.
• RM110 million to upgrade hawker centres and public markets across the nation.
• RM100 million to support the digitalisation efforts of 20,000 SMEs.
• RM50 million to develop 4,000 new trading spaces. These traders will be given six months of free rent.
• RM10 million to upgrade 10,000 food stalls and warungs nationwide.

Agriculture and food security

• The price ceiling for eggs and chicken will be lifted.
• The government to increase the floor price of padi to RM1,300 per metric tonne to support farmers.
• RM3 billion for a pilot project to increase padi harvest in Perak, Perlis and Kedah.
• RM2.6 billion in subsidies and incentives for fishermen and padi farmers.
• Agrobank to provide up to RM430 million in loans to support the productivity of farmers.
• RM400 million to support food security programmes.
• RM50 million in subsidies to increase Padi production in hillsides.
• RM50 million seed fund for padi farmers under Skim Takaful Tanaman Padi. This will benefit over 240,000 farmers.
• RM50 million to compensate farmers and fishermen affected by natural disasters.
• RM10 million to build new homes for fishermen.

Tourism

• The next Visit Malaysia Year has been set for 2026. The government is targeting 26.1 million tourist arrivals.
• RM350 million to support efforts to promote Malaysia as a top tourism destination. This includes the Visit Malaysia 2026 campaign, aid for cultural performances, matching grants for charter flights and to support for Islamic tourism.
• RM20 million to upgrade and maintain selected tourism sports including those in Perlis, Pahang and Negeri Sembilan.

Arts and Culture

• RM160 million to support the creative industry. This includes funds to support local films.
• RM80 million for the conservation and preservation of UNESCO heritage sites, including those in Sarawak, Kedah and Perak.
• RM50 million for government agencies to promote arts and culture.
• RM20 million for Think City to preserve Kuala Lumpur’s cultural heritage.
• RM10 million to support cultural activities in Sabah, Sarawak, Perak, and Terengganu.
• 10% reduction in entertainment duties for international acts.
• 5% reduction in entertainment duties for theme parks.
• Local artists will not be subject to entertainment duties.
• Government to revise entertainment duties in Federal Territories.

Youth and sports

• Government to expand bankruptcy scheme to support youths with debts of less than RM200,000.
• RM20 million for Rakan Muda programme.
• RM500 reward for youths who volunteer with bodies recognised by Putrajaya.
• RM72 million to improve the ecosystem for elite athletes. This includes RM20 million for the Road to Gold Olympic programme.
• RM12 million for the National Sports Council to support the training of athletes.
• Up to RM1,000 tax exemption for purchase of sporting goods. This is extended to training fees.

Sabah and Sarawak

• RM5.8 billion for Sarawak and RM6.6 billion for Sabah.
• The government is negotiating the handing over of the Bintulu Port and the operation of the rural air space to Sabah and Sarawak.
• Government to support the implementation of a hybrid solar energy project in southern Sabah.

Disaster management

• RM11.8 billion for 33 flood mitigation projects in Pahang, Selangor, Negeri Sembilan, Sabah, Sarawak, Kedah and Kelantan.
• RM300 million for NADMA to prepare for floods.
• RM200 million to build nine permanent relief centres and to repair facilities at 1,500 temporary relief centres.

Islamic Affairs

• RM1.9 million for Islamic affairs. This includes RM220 million to build two new Islamic education institutions in Kuala Lumpur and Negeri Sembilan.
• RM500 million in loans for those looking to develop wakaf lands nationwide.
• RM17 million for tahfiz TVET programme.
• The government restored RM20,000 in aid for all Sekolah Agama Rakyat registered under Jakim. This was ceased in 2003.
• The faster halal certification process, from 51 days to 30 days.

Laws and legal reforms

• RM38 million to upgrade courts and train more judges.
• RM18 million for legal reforms.
• Government Procurement Act to be tabled next year.
• Amendments to the Drug Dependants (Treatment and Rehabilitation) Act 1983.
• Government to introduce a visa liberalisation plan, including easing employment pass approvals for strategic investors in primary sectors.
• Putrajaya will also introduce an extended social visit pass for foreign students who have completed their studies, to boost the supply of skilled workers.
• Visa-on-arrival processes will be eased while multiple entry visas will be offered to tourists and investors from India, China and the Middle East.
• Relaxation of Malaysia My Second Home (MM2H) programme.

Others

• RM10 billion for housing credit guarantee, to benefit 40,000 borrowers.
• RM546 million for maintenance of 36 PPRs.
• RM2 billion to support the National Energy Transition Roadmap (NETR).
• RM510 million for R&D under the science, technology and innovation as well as higher education ministries.
• RM76 million to support the R&D ecosystem.
• RM60 million to develop a 5G cybersecurity framework and local expertise.
• RM5 million to improve facilities for the fire and rescue department, police and customs department’s K9 units.
• Government to set up STEM special task force.
• RM10 million in humanitarian aid for Palestine.

Please be informed that P.U.(A) 263/2014 Income Tax (Deduction From Remuneration)(Amendment)(No.2) RUles 2014 has been gazetted on 31 Dec 2014. Among the Statutory changes are as follow –

1. "Remuneration" means income in respect of gains or profits from an employment. Benefit in Kind (BIK) and Value of Living Allowance (VOLA) are subjected to PCB.

2. Employee shall be allowed to claim allowable deductions and rebates under the Act not less than twice in the current year by using TP1 form.

 

 

 

 

Effective from YA 2014, it is proposed that a Company is deemed to have gross income consisting of interest from loan or advances to directors.

The interest income is calculated based on the formula :-

1/12  x  A  x  B 

 

A      is the total amount of loan or advances outstanding at the end of the calendar month;

B      is the average lending rate of commercial banks published by the Central Bank at the end of the calendar month or

        where no such average lending rate, such other reference lending rate as may be prescribed by the Director General.

 

If a Company actual interest charged is higher than the total sum of deemed interest, the above formula is not applicable.