We are excited to be part of an exclusive industry engagement session featuring MICPA-CAANZ and the...
Read More
Leading audit, tax, and consulting firm in Malaysia providing professional business solutions.
Leading audit, tax, and consulting firm in Malaysia providing professional business solutions.
On 10 October 2025, Prime Minister and Finance Minister YAB Dato’ Seri Anwar Ibrahim tabled the 2026 Malaysian Budget. Themed “Belanjawan MADANI Keempat: Belanjawan Rakyat,” this budget introduces several pivotal changes to corporate and individual tax structures aimed at fostering economic growth and supporting the well-being of the rakyat.
The government has proposed several incentives to encourage investment in technology, sustainability, and the tourism sector.
The tax exemption on FSI and gains from the disposal of capital assets arising outside Malaysia will be extended for 4 years, from 1 January 2027 to 31 December 2030. Additionally, the exemption for dividend income received by resident companies and LLPs is expanded to include cooperative societies and trust bodies.
Companies can fully claim qualifying expenditures within 2 years (20% initial, 40% annual allowance) for heavy machinery, ICT equipment, and customized software development. This is effective from 11 October 2025 to 31 December 2026.
An ACA of up to RM4,000 per unit is available for heavy vehicles (GVW exceeding 3,500kg for goods or 5,000kg for passengers) manufactured before 2015. This applies to installations from 1 January 2026 to 31 December 2026.
In preparation for Visit Malaysia Year 2026, registered tourism operators can claim a tax deduction for renovation and refurbishment costs up to RM500,000. This is effective for expenditures from 11 October 2025 to 31 December 2027.
To encourage MSMEs and tech companies to list on the Main, ACE, or LEAP Markets, the tax deduction of up to RM1.5 million on listing expenses has been reviewed. This now includes MSMEs in the energy and utilities sectors and is effective for years of assessment (YA) 2026 to 2030.
The 2026 Budget places a strong emphasis on family welfare, health, and lifestyle.
The existing RM2,000 relief and the temporary RM1,000 relief are being combined into a permanent RM3,000 relief. The scope now includes daily care and after-school transit centers for children up to 12 years old.
Relief for life insurance or takaful contributions (RM3,000) is expanded to include children.
Tax relief is expanded to cover all vaccines registered and approved by the National Pharmaceutical Regulatory Agency.
Relief for early intervention or rehabilitation for children with learning disabilities (such as Autism, ADHD, or Down Syndrome) is increased from RM6,000 to RM10,000.
The RM2,500 relief for environmental sustainability is expanded to include household food waste grinders and CCTV for home use. This is effective for YA 2026 and 2027.
Individuals can claim up to RM1,000 for entrance fees to tourist attractions (museums, theme parks, national parks) and cultural/art programs for YA 2026.
For more detailed information, you can visit the official Ministry of Finance budget portal at https://belanjawan.mof.gov.my/en/.
We are excited to be part of an exclusive industry engagement session featuring MICPA-CAANZ and the...
Read MoreKHR is proud to be one of the supporting partners for the ICAEW ASEAN Sustainability Summit...
Read MoreIn essence, the policy here involves hiring the best talent for the position. The process of...
Read More
© 2025 KHR. All rights reserved.
