Tax exemption for women returning to work
Women returning to work after a minimum of 2 years away from the work force will enjoy tax exemption on their income for up to 12 consecutive months.
This will be effective for assessment years 2018 to 2020.
Applications for tax exemptions will have to be submitted to TalentCorp Malaysia.
Eligibility Criteria
To qualify for this tax exemption, applicants must meet the following criteria:
- Malaysian Citizenship: The applicant must be a Malaysian citizen.
- Residency: The applicant must be a resident in Malaysia.
- Career Break Duration: The applicant must have ceased employment and not derived any employment income for a continuous period of at least 24 months prior to the application date.
- Prior Work Experience: The applicant must have at least three years of full-time employment experience before the career break.
- Age Limit: The applicant should not exceed the age of 58 years on the date of application.
- Employment Contract: The applicant must have signed a full-time employment contract in Malaysia with a qualifying employer for a period of at least 24 months.
- Minimum Employment Period: The applicant must have worked for at least 12 consecutive months with the same employer during the exemption period.
- Minimum Monthly Income: The applicant’s gross income from the employment contract must be at least RM5,000 per month.
Incentives for Employers
To further encourage the hiring of women returning to work, the government has proposed additional incentives for employers.
Employers who hire women returning after a career break are eligible for a 50% additional tax deduction on employment expenses paid for a period of 12 months. This incentive is effective for applications received by TalentCorp from 1 January 2025 to 31 December 2027.
These measures reflect the Malaysian government’s commitment to supporting women’s re-entry into the workforce and promoting a diverse and inclusive work environment.
