Updated: Jul 17
Update: The Ismail Sabri Government Budget is no longer applicable.
Malaysia's national budget for 2023 was re-tabled again in February 2023; for more info, please visit - https://www.ccs-co.com/post/budget-2023-malaysia-madani.
This tax incentive included in Budget 2023, tabled in Parliament on 7 October 2022, was not included in Budget 2023 (Re-tabled) on 24 February 2023.
Response from MOF (Ministry of Finance): The incentive period will end in December 2023.
Under the Income Tax (Exemption) (No 9) Order 2019, the employment income of women returning to the workforce after a career break is exempted from income tax, subject to condition as follows:
who is a citizen of Malaysia;
who is resident in Malaysia;
who has ceased employment and has not derived any employment income for a continuous period of at least 24 months prior to or as at 27 October 2017;
who has at least 3 years full time employment experience prior to the cessation of employment referred to in (c) above;
who does not exceed the age of 58 years on the date of the application;
who has signed a full time employment contract in Malaysia with a qualifying employer for a period of at least 24 months;
who has worked for at least 12 consecutive months from the employment contract period referred to in (f) above with the same qualifying employer and the period of that employment is between 27 October 2017 until 31 December 2024
whose gross income from an employment contract referred to in (f) above is at least RM5,000.00 a month; and
whose application has been approved.
Proposal [This tax incentive included in Budget 2023, tabled in Parliament on 7 October 2022, was not included in Budget 2023 (Re-tabled) on 24 February 2023]
In encouraging women to return to work and contribute to the economy, it is proposed the existing conditions be reviewed as follows:
career break of at least 2 years on the date of application received by Talent Corporation Malaysia Berhad; and
tax exemption on employment income received from year of assessment 2023 until year of assessment 2028.
For applications received by Talent Corporation Malaysia Berhad from 1 January 2023 until 31 December 2027
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