Malaysia Gazettes Order on Income Tax Deduction for Flexible Work Arrangement Implementation Costs

The Malaysian Official Gazette June 16 published Order No. P.U. (A) 225/2026, on the corporate income tax deduction for costs incurred by employers implementing flexible work arrangements. The order includes measures: 1) allowing a deduction for 50 percent of qualifying expenditures incurred on capacity development, including employee training and software acquisition; 2) setting Jan. 1, 2025, through Dec. 31, 2027, as the application period for verifying flexible work arrangements; 3) including as qualifying costs training fees, materials, trainers, space rental, examination fees, and capped travel, with accommodation limited to 300 Malaysian ringgits (US$74) per day and meals limited to 150 ...