The beats we are going to highlight in this content are following:
A Record RM421 billion allocation, tax incentives
Strategic investment
Personal tax relief
Dividend income
Income tax
Carbon tax
Service tax sst
Personal tax relief
Minimum wage
Please view here available grants
THE HIGHLIGHTS:
SST:
Sales tax will be exempt on basic food items; however, it will apply to non-essential goods, such as premium imported products like salmon, avocado, and similar items.
Dividend Tax:
· A 2% dividend tax will be introduced for individuals with annual dividend income exceeding RM100,000, effective from Year of Assessment 2025.
· Consideration will be given to exempt dividend tax on income from Gov Savings such as
a. EPF
b. Unit trusts under PNB
c. Dividend income from abroad
SUBSIDIES:
RON95 & EDUCATION
· Targeted subsidies to be implemented in mid-2025
· RON95 to be maintained for majority of population
· Education Subsidies to be gradually reduced for top 15% income group
EDUCATION TAX RELIEF:
Tax relief on net deposits to NATIONAL EDUCATION SAVINGS SCHEME (sspn) WILL BE EXTENDED FOR ANOTHER 3 YEARS
Income tax relief:
Tax exemption on income derived from foreign sources will be extended until Dec 31, 2036
Income Tax relief for contributions to Private Retirement scheme (PRS) and deferred annuity premium payments until 2030
HOUSING:
SJKP will guarantee first time homebuyer loans of upto RM500,000 for homes developed on waqf land
Tax relief for disabled children increased to RM8,000, up from RM6,000
Companies implementing flexible work arrangements (WFH) eligible for 50% tax deductions, capped at RM500,000.
Companies investing in e-invoicing systems receive accelerated capital allowances, fully claimable over two years
Businesses investing in automation and green technologies benefit from accelerated capital allowances
Employers hiring women returning after a career break receive 50% tax deduction on employment expenses for 12 months
Please view here available grants
Key Pillars of Malaysia's 2025 Budget
Reinvigorating the Economy: The budget prioritizes economic recovery through fostering innovation and investing in infrastructure. It seeks to stimulate sustainable growth by promoting high-value industries, advancing digitalization, and supporting clean energy initiatives.
Driving Reforms: A strong focus on fiscal responsibility, guided by the Public Finance and Fiscal Responsibility Act 2023, aims to manage public debt and reduce the fiscal deficit to 3.8% of GDP by 2025. Governance reforms emphasize enhanced transparency and anti-corruption efforts, strengthening institutional frameworks and reinforcing accountability.
Prospering the Rakyat: This budget underscores inclusive policies designed to uplift marginalized communities, expand social welfare programs, and enhance healthcare services. Substantial investment in education, healthcare, and infrastructure aims to improve the well-being and quality of life for all Malaysians.
Important: Government agencies are expected to launch new grants soon. We highly recommend contacting us to learn more about our comprehensive consultation package, tailored to support your grant application process from start to disbursement. Our services include organizing documentation, crafting proposals in alignment with guidelines, managing submissions, and liaising with relevant departments to ensure a smooth journey through each stage of approval to final disbursement.
Acting promptly is crucial, as a high volume of applications is anticipated. Once the allocated funds are exhausted, the responsible agency will close the grant. With a 95% success rate, we operate on a first-come, first-served basis. Visit our office or call us today to secure your spot.
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