Tax in Motion - Budget 2027 Edition

Welcome to our Tax in Motion Budget Edition which brings you the key tax proposals of Budget 2027 based on the Budget speech as announced by the Prime Minister and Finance Minister on 9 October 2026.

Highlights

• Review of tax rates and enhanced personal tax relief: Higher take-home income for middle-income taxpayers, with a higher tax rate for those earning RM1 million and above.
• Lower tax rates and higher capital allowances for MSMEs: Reduced tax costs and greater capital allowances to support business investment.
• Enhanced Global Services Hub and family-office incentives: More competitive incentives to strengthen Malaysia’s position as a regional business and wealth-management hub.
• Enhanced green investment incentives: Broader coverage and longer-term certainty to encourage investment in green technologies and renewable energy.
• Tax deduction for salary payments through prescribed payment channels: Deductions allowed only for payments made through financial institutions or approved cashless channels, excluding MSMEs.
• Indirect tax relief for manufacturers and elderly-care services: Sales tax refunds to reduce sourcing costs and lower service tax to ease elderly-care expenses.