(Tax Update) Malaysia Budget 2025: Key Tax Updates for Corporate | KTP Tax Advisory

(Tax Update) Malaysia Budget 2025: Key Tax Updates for Corporate | KTP Tax Advisory

Stay informed with KTP as we break down Budget 2025 and the major changes impacting Malaysian companies, employers, and taxpayers.

This comprehensive video covers the latest tax deductions, incentives, and allowances available to support businesses in Malaysia.

We focus on practical tax benefits designed to encourage flexible working, childcare, eldercare, and the hiring of returning women workers, plus accelerated allowances on tech investments.

Dive into the new tax incentives, including Smart Logistics Complex (SLC) qualifications, export benefits, and upcoming carbon taxes.

01Key Highlights Include:

02A) Companies & Business Deductions

• Childcare & Eldercare Allowances: Employers can claim deductions for both childcare and eldercare expenses from YA 2025.
• Flexible Working Arrangements (FWA): Companies implementing FWA may claim a 50% additional deduction on costs up to RM500,000.
• Care Leave Provisions: 50% extra deduction for paid leave to employees caring for sick family members.
• Support for Women Returning to Work: 50% additional deduction for employment expenses on hiring women back to the workforce.
• ICT Equipment Allowance: Accelerated Capital Allowance (ACA) now reduced to two years with 20% Initial and 40% Annual Allowances for ICT-related investments.

03B) Tax Incentives

• Smart Logistics Complex (SLC): Investment Tax Allowance (ITA) up to 60% on CAPEX, aiming to boost Industry 4.0 integration in logistics with automation, AI, IoT, and blockchain.
• Increased Exports: Enhanced scope for Integrated Circuit (IC) Design services, aligning with Malaysia’s goal to become an advanced tech hub.

04C) Indirect Tax Updates

• Sales & Service Tax: Adjusted exemptions and increased rates for non-essential goods starting May 2025.
• Excise Duty on Sugary Drinks: Increased phased rates effective January 2025.
• Carbon Tax: Introducing Malaysia's first Carbon Tax targeting energy, iron, and steel sectors by 2026.

YouTube Video
Watch our Budget 2025 Webinar for Individuals on YouTube : https://youtu.be/t2rFOCnrVLI

📌 Watch now to get the details and learn how these changes can impact your business!
📌 Visit www.ktp.com.my for more accounting insights and updates.
📌 Subscribe to KTP for more tax, finance, and business strategies tailored for Malaysia.

05Past Update on Budget 2025

• Dividend Income : https://www.ktp.com.my/blog/2percent-tax-dividend-income-above-rm100k/17oct2024
• HR : https://www.ktp.com.my/blog/malaysia-budget-2025-hr/23oct2024
• Companies : https://www.ktp.com.my/blog/malaysia-budget-2025-companies/24oct2024
• Individual : https://www.ktp.com.my/blog/malaysia-budget-2025-individual/25oct2024
• Tax Incentives : https://www.ktp.com.my/blog/malaysia-budget-2025-new-tax-incentives/30oct2024
• Indirect Tax : https://www.ktp.com.my/blog/malaysia-budget-2025-indirect-tax/1nov2024

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