Tax Incentive on Implementing or Enhancing the Existing Flexible Work Arrangements (“FWAs”)

In October 2021, the Income Tax (Deduction for the Costs of Implementation of Flexible Work Arrangements) Rules 2021 have been gazetted to provide a double deduction on qualifying expenses incurred by a qualifying person in implementing FWAs or in enhancing existing FWAs.  FWAs are flexible arrangements for the place of work, scheduling of working hours or the number of hours worked.

The Rules are deemed to have effect from year of assessment (“YA”) 2020.  An application has to be made to Talent Corporation Malaysia Berhad (“TalentCorp”) from 1 July 2020 to 31 December 2022 to enjoy the said tax incentive.  The verified expenses qualify for a tax deduction for 3 consecutive YAs commencing from the YA in the basis period of which the certification is obtained, but are capped at RM500,000 per YA. 

Further to the gazetting of the above Rules, TalentCorp has issued some frequently asked questions and application guidelines, together with the application form and declaration form, to provide further guidance and clarification on the type of expenses qualifying under the Rules as well as the application process.

The relevant materials can be accessed via the above links.

Petaling Jaya Office

Soh Lian Seng
Executive Director -
Head of Tax and Head of Tax Dispute Resolution
+ 603 7721 7019

Bob Kee
Executive Director -
Head of Transfer Pricing
+ 603 7721 7029

Tai Lai Kok
Executive Director -
Head of Corporate Tax
+ 603 7721 7020

Long Yen Ping
Executive Director -
Head of Global Mobility Services
+ 603 7721 7018

Ng Sue Lynn
Executive Director -
Head of Indirect Tax
+ 603 7721 7271

Outstation Offices

Penang Office

Evelyn Lee
Executive Director -
Penang Tax
+604 238 2288 (ext. 312)

Ipoh Office

Crystal Chuah Yoke Chin
Tax Manager -
Ipoh Tax
+605 253 1188 (ext. 320)

Kuching & Miri Office

Regina Lau
Executive Director -
Kuching & Miri Tax
+6082 268 308 (ext. 2188)

Kota Kinabalu Office

Titus Tseu
Executive Director -
Kota Kinabalu Tax
+6088 363 020 (ext. 2822)

Johor Bahru Office

Ng Fie Lih
Executive Director -
Johor Bahru Tax
+607 266 2213 (ext. 2514)