Having Budget 2025 unveiled to the nation on 18th October, it has become the centre of attention among Malaysians. With an astounding pool of RM421 billion, this budget places itself as the biggest in the country’s history. Aside from the big budget, it is also backed by a strategy emphasising on improvement of the nation’s quality of life.

However, these questions remain: What business opportunities have surfaced after this announcement? What are the updates to the latest tax policies? More importantly, how should we go about our tax planning?  

Let’s first go through the bare basics. 

Knowing that the total allocated fund for Budget 2025 is RM421 billion, RM335 billion and RM86 billion is segmented for operating expenditure and development expenses respectively. The total government revenue for 2024 was projected to be RM322 billion, marking an increase from 2023, and expected to further grow to RM340 billion in 2025. The projection for Malaysia’s GDP will increase from 4.5% to 5.5% with support from the new Budget’s initiatives.  

“Okay, what are some key points of the Budget?” 

Here are some that will directly impact business owners in the coming year. 

2% Tax on Dividend Income over RM100K 

Starting from the YA 2025, a 2% dividend tax will be imposed onto individual shareholders receiving over RM100,000 in dividend income. This will affect high-earning shareholders, decreasing their post-tax returns from investments in companies. With the addition of this tax, how can these shareholders plan their strategies for dividend income? 

Minimum Wage Increase to RM1.7K

Effective 1 February 2025, the minimum wage will be increased to RM1,700 per month.  However, employers with less than 5 employees will be given a grace period of 6 months. The increase will only take effect from 1 August 2025. This significant jump pushes smaller businesses to monitor their payroll budgets closely. 

Access to Digital Grants and Tax Incentives 

Budget 2025 has allocated substantial amount of grants and tax incentives to support business operation. For the technology and manufacturing sectors, these grants or incentives will enable businesses to achieve further growth and innovation. 

In this period of change, as the government actively strives to improve the nation while driving growth, it is crucial to stay informed and adapt to the latest tax policies. In line with YYC’s commitment to supporting your journey, we have organised an online webinar 【Navigating Budget 2025: Your Path to Business Success】!  

In Malaysia, filing taxes is a duty, and paying them is no beauty. Our speaker, Zen Chow, will explain the various highlights of Budget 2025 and help you gain a comprehensive understanding of the government’s budget policy. Zen’s insights on the Budget will benefit you tremendously in your tax planning for business operations!  

Are you interested to learn more? Below are the webinar details! 

The event details are as follows: 
📅 Date: 5 November 2024 (Tuesday) 
🕘 Time: 10.30AM – 12.00PM 
🔊 Language: English 
📌 Platform: ZOOM

Pricing:
RM288 FREE FOR THE FIRST 300 REGISTRANTS

Additionally, Registrants will also receive YYC's Exclusive 《Budget Newsletter 2025》as a complimentary gift upon registration!  

What are you waiting for? The limited free seats are filling up quickly, so register now while you still can! See you there!    
 

Subscribe to YYC taxPOD and unlock decades of tax-saving knowledge at your fingertips. Visit https://taxpod.com.my/taxknowledge now!  

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