Do you feel that this year’s budget offers no benefits to your business and might even increase operating costs? Don’t worry! The budget actually includes hidden tax measures that can reduce your business burden. Here’s an overview of key tax measures and how to plan your corporate taxes effectively to save costs and optimise your financial standing. 

1. Further Tax Deduction for Hiring Women Returning to Work 

To encourage greater participation of women in the workforce, businesses hiring women returning to work are eligible for a 50% further tax deduction on employment expenses for a 12-month period for an approved woman. This requires an application through Talent Corporation Malaysia Berhad, with applications open from 1 January 2025 to 31 December 2027.  

2. Further Tax Deduction for Implementing Flexible Work Arrangements (FWA) 

To promote work-life balance, the government has proposed a 50% further tax deduction for costs incurred in implementing flexible work arrangements, including capacity development and software purchases, capped at RM500,000. Applications must be submitted through Talent Corporation Malaysia Berhad and are open from 1 January 2025 to 31 December 2027. 

3. Further Tax Deduction for Caregiving Paid Leave 

To support employees in balancing family responsibilities, employers who provide additional paid leave for employees to care for children, ill family members, or disabled family members will be entitled to a 50% further tax deduction. This measure helps businesses support their employees while receiving tax benefits. 

4. Extension of Double Tax Deduction for the Structured Internship Programme (MySIP) 

Businesses participating in the Structured Internship Programme (MySIP) led by Talent Corporation Berhad can continue to enjoy double tax deductions. Initially set to end in YA 2025, this policy has been proposed for extension until YA 2030. It helps businesses attract young talent and provides students with valuable work experience. 

Conclusion 

Budget 2025 offers strategic tax benefits to support businesses prioritising workforce diversity, employee well-being, and talent development. By leveraging these, companies can optimise tax savings while advancing inclusivity, sustainability, and financial resilience. Proactive planning ensures long-term organisational benefits.