AdrianYeo Tax KL - The Business Ledger by cindy

Budget 2027: Service Tax on Elderly Care Cut to 6%, with Exemption for Fees up to RM96,000

Fri, 06 Nov 2026 17:38:18 +0800

Paying for elderly care is one of the biggest costs many families face, and it often comes with service tax on top. Budget 2027 includes two measures to bring that cost down: a lower service tax rate, and an exemption for fees up to a set limit.

What was announced

From 1 January 2027 (proposed), two changes apply to elderly care services:

Lower rate. Service tax on elderly care services falls from 8% to 6%.
Exemption. Registered centres charging annual care fees of up to RM96,000 per person (RM8,000 a month) will be exempt from service tax, subject to conditions. Amounts above the threshold are expected to be taxed at 6%.

Elderly care services are also being moved to a new classification under the service tax regulations. They are currently taxed under the wellness centre category.

Which centres qualify for the exemption?

The exemption is for centres registered under either of these laws:

the Care Centres Act 1993, or
the Private Aged Healthcare Facilities and Services Act 2018.

The reports on the measure name registered care centres, and do not mention home care. Families who pay a carer at home should not assume the exemption applies to them. The registration threshold for charging service tax stays at RM500,000, so some smaller homes may not charge service tax at all.

What it could save

Here is a simple illustration, based on our own arithmetic. A family pays RM4,000 a month for a parent’s place in a registered care home, which is RM48,000 a year. Under the current 8% rate, service tax adds RM3,840 a year. Under the proposed exemption, that service tax would not be charged, so the saving is about RM3,840 a year. For a home charging more than RM8,000 a month, the treatment of the amount above the threshold is not yet fully clear.

What is still unclear

Several important points will depend on the final rules:

Fees above RM96,000. The tax measures say amounts above the threshold are taxed at 6%, but it is not yet clear whether the 6% applies only to the excess or to the whole fee.
Conditions. The exemption is subject to conditions, and the process for providers to apply is still to be announced.
Transition. For contracts, advance payments and invoices that straddle 1 January 2027, transitional rules are expected.
Legislation. These are proposals until they are gazetted.

Related measures for families

Budget 2027 also supports elderly care in other ways:

Tax relief for parents’ and grandparents’ care is widened to cover all types of care expenses, not only medical costs, up to RM8,000. See our earlier post for details.
Two National Integrated Care Centres of Excellence will be set up in Penang and Sarawak.
More than RM40 million will go towards training 8,000 people in elderly care.

What families should do now

Ask your care home about its registration. Find out which Act it is registered under, and whether it charges service tax today.
Keep every bill and receipt from 1 January 2027. They support both the service tax position and the income tax relief for parental care.
Compare costs carefully when choosing a provider, and check how fees are shown, with or without service tax.
Wait for the implementing rules before assuming the exemption covers your situation.

What care providers should do now

Review your classification, rate and exemption settings in your invoicing systems.
Check your registration status under the relevant Act.
Review existing contracts and advance payments that straddle 1 January 2027.
Watch for the detailed rules from the Royal Malaysian Customs Department.

Speak to AdrianYeo Tax

Whether you are a family planning for a parent’s care or a provider adjusting to the new rules, our chartered accountants can help you understand the tax impact and plan ahead.

Book a tax consultation today!

This article is for general information only and does not constitute tax advice. Measures are based on Budget 2027 announcements and may change when the legislation is finalised. Please consult a tax professional about your specific circumstances.

Budget 2027: School Public Contribution Fund Donations, Tax Deduction and Wider Use of Funds

Fri, 06 Nov 2026 17:36:35 +0800

Many parents, alumni and businesses want to support their local schools but are not sure how the tax rules work. Budget 2027 puts the spotlight on the School Public Contribution Fund (Tabung Sumbangan Wang Awam Sekolah, or TSUWAS) and makes it more useful for schools.

What is not new: the 10% deduction

Individuals and companies that make cash contributions to an approved School Public Contribution Fund can claim a tax deduction of up to 10% of their aggregate income. This deduction already exists, and Budget 2027 keeps it in place.

Aggregate income is your total income from all sources for the year, before donations and tax reliefs are taken off. For example, if your aggregate income is RM100,000, the most you could deduct for qualifying school donations is RM10,000.

What is new: how schools can use the money

Under Budget 2027, the fund will be improved so that voluntary contributions from parents, alumni and the community can be used for a wider range of purposes, including:

school operations and administrative expenses
repairs and maintenance of facilities
purchase of equipment
student programmes

This is proposed to take effect from the 2027 year of assessment, and the aim is to encourage greater community involvement in creating better school environments. The change comes alongside a doubling of the government’s allocation for school repairs and maintenance to RM2 billion.

What qualifies for the deduction

Cash only. Donations in kind, such as equipment or materials, do not qualify.
An official receipt. Only cash donations supported by an official receipt from the school are allowed.
An approved fund. The donation must go to a fund that is approved under the Income Tax Act, which means the receipt should reference the approved fund.

An illustration

Suppose a parent with aggregate income of RM100,000 donates RM2,000 in cash to an approved fund and their top tax rate is 18%. The deduction reduces their tax by roughly RM360 (RM2,000 × 18%). This is our own illustration. The actual saving depends on your income and tax bracket.

Two points to be aware of

Direct donations to school boards. The deduction is for the approved fund. Some education groups have pointed out that donations made directly to school boards of governors, such as those of Chinese schools, are not treated in the same way, and have asked the government to give them equal treatment. This is not part of the announced measure at this stage.
Public universities. Separately, Budget 2027 also says donations to public universities qualify for a deduction of up to 10% of aggregate income.

What to do now

Check that the fund is approved. Ask the school to confirm in writing before you give.
Give in cash and get an official receipt. Keep it with your tax records.
Plan your giving. If you donate regularly, see how much of your 10% cap you use across all deductible donations in a year.
For companies, review your policy. Check how school donations fit within your overall corporate giving.
Wait for final guidance on how the wider use of funds will work.

Speak to AdrianYeo Tax

Charitable giving can be tax-efficient when it is done properly. Our chartered accountants can help you plan your donations and keep the right documents.

Book a tax consultation today!

Budget 2027: Green Technology Tax Incentives Extended to 2030

Fri, 06 Nov 2026 17:34:32 +0800

For businesses investing in solar power, energy-efficient equipment or other green technology, Budget 2027 brings useful certainty. The government has announced that tax incentives for green and sustainable technology will be enhanced and extended until 31 December 2030.

What was announced

The Prime Minister announced that tax incentives will be extended to encourage more companies to adopt green and sustainable technology. The extension covers the Green Investment Tax Allowance (GITA) and the Green Technology Financing Scheme, with allowances of up to 100% for qualifying investments.

The previous incentive period was due to end on 31 December 2026, so this gives businesses four more years of planning room.

The incentive categories

Malaysia’s green technology tax incentive has three main parts:

Incentive	Who it is for
GITA Asset	Companies that buy qualifying green technology assets, or undertake projects for their own consumption, where the assets are listed in the MyHijau directory
GITA Project	Companies undertaking qualifying green technology projects for business purposes, such as renewable energy generation, EV charging stations and green hydrogen
Green Income Tax Exemption (GITE) for solar leasing	Qualifying solar leasing companies listed in the Registered Solar PV Investor Directory

What the allowance means in practice

GITA is an investment tax allowance. Instead of claiming the usual capital allowance on a qualifying asset, an eligible company can offset a percentage of its qualifying capital expenditure against its statutory income. The allowance can be up to 100%, but it is typically restricted to a percentage of statutory income each year, which spreads the benefit. Please check the final rules for the precise mechanics.

For the asset incentive, reports on the tax measures indicate that it covers qualifying assets purchased from 1 January 2027 to 31 December 2030, as verified by the Malaysian Green Technology and Climate Change Corporation (MGTC).

Not every change is generous

Extensions often come with adjustments. Commentary on the tax measures notes that the proposed amendments for 2027 to 2030 narrow the allowance for EV charging station operators, compared with the existing terms. If your business is in this sector, review the final terms with your adviser before committing to investment.

Who should pay attention?

Manufacturers and factories looking at energy-efficient machinery or solar installations.
Property owners and commercial operators considering rooftop solar or energy management systems.
Companies building renewable energy or EV charging projects.
Solar leasing providers.

What to do now

Check your planned capital expenditure. If you are planning green investments, see whether the assets or projects fall within the qualifying categories.
Check the MyHijau directory. For GITA Asset, the assets need to be on the approved list.
Plan timing. The incentive window now runs to the end of 2030, which gives you room to phase investments sensibly.
Check the application route. GITA Asset applications go through MGTC, while GITA Project and GITE solar leasing go through MIDA. Confirm the current process before you commit funds.
Wait for the final guidelines. The details are subject to the legislation and updated agency guidelines.

Speak to AdrianYeo Tax

Green incentives can be valuable, but they come with strict eligibility and application rules. Our chartered accountants can help you assess your investments and plan your claims.

Book a tax consultation today!

Budget 2027: Tax Deduction for Employers Who Repay Employees’ PTPTN Loans

Fri, 06 Nov 2026 17:32:44 +0800

For many young Malaysians, a PTPTN loan is the first big financial obligation of their working lives. Budget 2027 brings in a measure that encourages employers to help: a tax deduction for employers who repay PTPTN loans on behalf of their employees.

What was announced

The government agreed to offer a tax deduction to employers who make PTPTN loan repayments for their employees. The incentive covers repayments made from 1 January 2027 to 31 December 2028, a two-year window.

Reports describe it as applying to companies that settle PTPTN loans on behalf of their full-time employees.

Why it matters

For employers, it is a new way to offer a benefit that employees value, and one that comes with tax relief. For employees, an employer contribution reduces outstanding debt and can lift a real financial weight, particularly for recent graduates. For businesses competing for young talent, it can also be a useful tool for attracting and keeping people.

The wider PTPTN package in Budget 2027

The employer deduction sits within a set of PTPTN measures announced together:

Deferment of repayments in 2027 for borrowers earning up to RM2,500 a month.
Minimum repayment of RM50 a month for borrowers earning between RM2,501 and RM3,000.
10% discount for borrowers with no arrears who make regular repayments.

More than 400,000 borrowers are expected to benefit from the deferment and minimum repayment measures. Eligibility for the deferment will be based on income information verified with LHDN.

What we do not know yet

Several important details are still to come, and as the slide says, the government will announce the conditions in due course. Points to watch include:

Deduction treatment. Reports say “tax deduction”. Whether this is an ordinary business deduction or something more generous has not been spelled out.
Employee treatment. It is not yet clear whether employer repayments will be treated as a taxable benefit for the employee. This matters for both sides.
Eligibility. Which employees and which employers qualify, and what documents are required, are still to be confirmed.
Payment mechanics. How payments are made to PTPTN on the employee’s behalf, and how they must be recorded.

An illustration, with caveats

Suppose a company repays RM500 a month towards an employee’s loan during 2027, a total of RM6,000. If it is treated as an ordinary deductible expense, a company paying tax at 24% would reduce its tax by about RM1,440, and an MSME at 16% by about RM960. These are our own illustrative figures, and the actual outcome depends on the final rules.

What employers can do now

Consider whether you want to offer this benefit. Think about the cost, the number of employees and whether it fits your retention strategy.
Prepare a policy. Decide which employees would be covered, what limits apply and how the benefit would be documented.
Wait for the guidance before you commit to a scheme, especially on employee tax treatment.
Keep clear records of every payment, including PTPTN receipts and employee details.

Speak to AdrianYeo Tax

Employee benefits touch payroll, tax and cost planning all at once. Our chartered accountants can help you design a benefit that works for your business, and keep it compliant.

Book a tax consultation today!

Budget 2027: Small Value Asset Limit Raised to RM3,000 per Asset

Fri, 06 Nov 2026 17:30:54 +0800

When a business buys equipment, the tax deduction doesn’t usually come all at once. It is normally spread over several years through capital allowances. For smaller purchases, though, the tax system offers a shortcut: the small value asset allowance, which allows a 100% write-off in the year you buy the asset. Budget 2027 makes this shortcut cover more assets.

What changed

Effective from the 2027 year of assessment:

The cost limit per asset rises from RM2,000 to RM3,000.
For companies that are not MSMEs, the annual claim limit rises from RM20,000 to RM30,000.
For MSMEs, there is no annual cap, as before.

How the allowance works

If an eligible asset costs no more than the per-asset limit, you can claim a 100% special capital allowance in the year you incur the expenditure, instead of claiming small amounts over many years. A larger share of your equipment purchases can now qualify for an immediate deduction.

An example

Suppose a business buys a laptop for RM2,800 and a set of office equipment for RM2,500 in 2027. Under the old RM2,000 limit, neither would have qualified for the special allowance, and both would have been claimed under the normal rates, spread across several years. Under the new RM3,000 limit, both can be claimed at 100% in the first year, subject to the other conditions.

The total tax deduction over the life of the asset does not change. The benefit is timing: you get the deduction sooner, which helps cash flow. For a company paying tax at 24%, a RM2,800 asset written off in one year reduces that year’s tax by about RM672. An MSME at the 14% or 16% rate would save less in tax, but still gets the deduction sooner.

MSMEs and larger companies

Company type	Per-asset limit	Annual claim cap
MSMEs	RM3,000 (from RM2,000)	None
Other companies	RM3,000 (from RM2,000)	RM30,000 (from RM20,000)

Points to check

Eligible assets. The allowance is for plant and machinery used in the business. Certain assets, such as those with a very short expected life, are generally excluded.
Assets that are not eligible. Assets that exceed the limit, or amounts above the annual cap for non-MSMEs, are claimed under the normal capital allowance rates.
Disposals. If you sell an asset after claiming 100%, a balancing charge may apply, so keep records.
MSME status. Check whether your company meets the MSME definition, because it decides whether the annual cap applies.
Guidance to come. LHDN issued a public ruling on small value assets on 30 September 2026, based on the RM2,000 limit. An update reflecting the new threshold is likely.

Related measure: accelerated capital allowance extended

Budget 2027 also extends the accelerated capital allowance for locally purchased plant, machinery and ICT equipment to 31 December 2030. Together with the higher small value asset limit, this makes equipment investment more tax-friendly.

What to do now

Plan your purchases. If you are planning to buy equipment in 2027, check whether items fall under the RM3,000 threshold.
Keep an asset register. Record each asset’s cost, date and use, and separate special and normal allowance claims.
Review your MSME status and your annual spending on small assets.
Wait for LHDN guidance on the final rules before filing for YA 2027.

Speak to AdrianYeo Tax

Capital allowances can look simple, but the details matter. Our chartered accountants can help you structure purchases and claims, and keep your records ready for LHDN.

Book a tax consultation today!

e-Invoicing in Malaysia: Where Things Stand After the Exemption Rises to RM3 Million

Fri, 06 Nov 2026 17:28:54 +0800

Malaysia’s e-Invoicing rollout has changed several times, and many business owners are no longer sure whether they are covered. If you saw an earlier timeline mentioning RM500,000 and 1 July 2026, please note that it has been superseded. Here is the current position as of November 2026.

This is not a Budget 2027 measure. It is an update from the Inland Revenue Board (LHDN), and we include it because it affects most small businesses.

The big change: RM3 million exemption

Effective 1 September 2026, LHDN raised the e-Invoice exemption threshold from RM1 million to RM3 million in annual turnover or revenue. Micro, small and medium enterprises with annual sales below RM3 million are not required to implement e-Invoicing, and LHDN says this benefits more than 1.1 million businesses. Exempt businesses can still choose to implement e-Invoicing voluntarily.

The exemption is not automatic in every case. A business below RM3 million may still not qualify if it falls into certain prescribed categories, so check the LHDN guideline before you assume you are exempt.

How we got here

Date	What happened
August 2024	e-Invoicing begins for taxpayers with turnover above RM100 million
January 2025	RM25 million to RM100 million
July 2025	RM5 million to RM25 million
December 2025	Exemption threshold raised from RM500,000 to RM1 million, cancelling the phase planned for 1 July 2026
1 September 2026	Exemption threshold raised from RM1 million to RM3 million

Who still needs to comply?

Taxpayers above RM5 million are already in the mandatory phases.
Taxpayers between RM3 million and RM5 million are in scope, but there is a penalty-free relaxation period. Reports on the LHDN specific guideline say it runs until 31 December 2027 for taxpayers with turnover of up to RM5 million. During this period, qualifying businesses may be able to issue consolidated e-invoices, instead of one for every transaction.
Taxpayers below RM3 million are exempt, subject to the conditions above.

A relaxation period is not an exemption

A penalty-free period softens enforcement. It does not remove the obligation. Businesses in scope should still build e-Invoicing into their systems and workflows, because enforcement is expected to follow when the relaxation ends.

What to do now

Check your annual turnover against the thresholds. The determination uses the turnover or revenue figures set out in LHDN’s guidelines, so confirm which year applies to you.
Confirm your exemption conditions. Review the categories that disqualify a business from the exemption.
If you are in scope, use the relaxation period well. Choose your software, test with MyInvois and train your team.
If you are exempt, keep records anyway. Customers who are in scope may still ask you for details, and voluntary adoption can help you work with larger clients.
Check for updates. The thresholds have changed twice in under a year, so review the current LHDN guideline version at least once a year.

Speak to AdrianYeo Tax

e-Invoicing touches your accounting, your software and your tax compliance. Our chartered accountants can help you work out whether you are covered, and our group’s team can support your readiness.

Book a tax consultation today!

Budget 2027: SME Corporate Tax Rates Cut by One Percentage Point from YA 2027

Fri, 06 Nov 2026 17:26:10 +0800

Small businesses carry much of Malaysia’s economy, but they also feel rising costs most sharply. Budget 2027 gives them some breathing room by lowering the preferential corporate tax rates for micro, small and medium enterprises (MSMEs).

What changed

From the 2027 year of assessment, which covers profits earned in the financial year ending in 2027, the preferential rates fall by one percentage point in two bands:

Chargeable income	Current rate	New rate (from YA 2027)
First RM150,000	15%	14%
RM150,001 to RM600,000	17%	16%
Above RM600,000	24%	24% (unchanged)

The government estimates that about 300,000 MSMEs will benefit, with tax savings of up to RM6,000 each.

Where the RM6,000 comes from

The maximum saving is simple arithmetic. A company with chargeable income of RM600,000 or more gets 1% off the first RM600,000, and 1% of RM600,000 is RM6,000.

For a smaller example, take a company with chargeable income of RM400,000. Under the current rates, tax is RM65,000 (15% of RM150,000 plus 17% of RM250,000). Under the new rates, tax is RM61,000 (14% of RM150,000 plus 16% of RM250,000). The saving is RM4,000. Companies with lower profits save proportionally less, for example RM1,500 on the first RM150,000 alone.

Who qualifies?

The preferential rates are for MSMEs, generally companies or limited liability partnerships with:

paid-up ordinary share capital (or capital contribution) of RM2.5 million or less, and
annual sales of not more than RM50 million.

There are also ownership conditions. For example, a company may lose the preferential rates if it is owned above certain thresholds by a related company or by foreign companies. Check these before assuming your company qualifies.

Other measures for businesses

Budget 2027 includes several supporting measures that are worth reviewing alongside the rate cut:

Small value assets. The cost limit per asset eligible for a full capital allowance claim rises from RM2,000 to RM3,000. For companies other than MSMEs, the annual cap rises from RM20,000 to RM30,000. MSMEs have no annual cap.
Accelerated capital allowance. The accelerated allowance on locally purchased plant, machinery and ICT equipment is extended to 31 December 2030.
Stamp duty. Opening a savings or current account will be fully exempt from stamp duty from 1 January 2027.
Financing. Financing and guarantee facilities for MSMEs rise to a record RM57 billion.

A point for non-MSMEs

Companies other than MSMEs will only be able to claim a tax deduction on salary expenses if wages are paid through bank accounts using channels permitted under the Employment Act 1955. MSMEs are not subject to this rule.

Remember the other side of the budget

The tax cut comes alongside the minimum wage rising to RM2,000 from June 2027. MSMEs with annual sales below RM50 million are temporarily exempt from the new wage rate, but should still plan for it. A sensible approach is to consider the tax saving, higher payroll costs and cash flow together.

What to do now

Confirm your MSME status. Review paid-up capital, annual sales and shareholding structure.
Update your tax estimates for YA 2027 using the new rates.
Review planned asset purchases. The higher small value asset threshold may change the timing and size of your claims.
Plan cash flow. The tax saving arrives when you pay tax instalments, so adjust your forecasts accordingly.
Watch for final guidance from the Inland Revenue Board before you file.

Speak to AdrianYeo Tax

Whether you run a micro business or a growing SME, the right structure and planning can make a real difference to your tax. Our chartered accountants can help you assess eligibility and plan ahead.

Book a tax consultation today!

Budget 2027: What It Means for Electric Vehicles and Green Investment

Fri, 06 Nov 2026 17:24:06 +0800

Electric vehicles are a growing part of Malaysian roads, and many buyers and businesses were watching Budget 2027 for signs of what comes next. The headline for green investment is positive. For EV buyers, the picture is more mixed.

The main green measure: GITA extended to 2030

The Prime Minister announced that tax incentives for green and sustainable technology will be enhanced and extended until 31 December 2030. This covers the Green Investment Tax Allowance (GITA) and the Green Technology Financing Scheme. Companies that undertake green technology projects, build EV charging stations, or buy qualifying green technology assets for their own use can claim allowances of up to 100%.

One point for charge point operators: some commentary notes that the proposed amendments for 2027 to 2030 narrow the allowance for EV charging operators compared with before. The details are in the Budget 2027 tax measures, so operators should check the final terms with their advisers.

What has not changed for EV buyers

Imported EVs (CBU) no longer enjoy the exemptions that ended on 31 December 2025, and Budget 2027 did not bring them back.
Locally assembled EVs (CKD) continue to enjoy excise duty and sales tax exemptions, and import duty exemptions on components, until 31 December 2027. We found no report that this was extended in Budget 2027, so manufacturers and buyers should plan around the 2027 date until the government says otherwise.
Direct buyer incentives. No new purchase rebates or subsidies for EV buyers were announced, although the government has said it is studying targeted measures.

An individual relief still in place

Individuals can claim tax relief of up to RM2,500 for the installation, rental or subscription of EV charging facilities. It is claimable through the 2027 year of assessment. The industry has asked for it to be extended, but we found no report of an extension in Budget 2027.

What this means for you

If you run a business, a green investment, such as solar equipment, energy-efficient machinery or EV chargers for your own use, may qualify for a generous allowance until 2030. Planning the timing and structure of these investments can make a real difference to your tax position.

If you plan to buy an EV, the tax advantage still sits mainly with locally assembled models until the end of 2027. If you install a home charger, keep the receipts to claim the individual relief.

What to do now

Review planned green investments against GITA eligibility before you commit to spending.
Check supplier and asset listings. Qualifying assets generally need to meet the approved criteria, so confirm eligibility first.
Keep EV charging receipts if you claim the individual relief.
Watch for further guidance. Official details on EV policy beyond 2027 may still be announced.

Speak to AdrianYeo Tax

Green incentives can be valuable, but eligibility rules are strict. Our chartered accountants can help you plan investments and claims with confidence.

Book a tax consultation today!

Budget 2027: Stamp Duty Exemption for First-Time Home Buyers Extended and Expanded

Sun, 01 Nov 2026 13:59:01 +0800

For many Malaysians, buying a first home is the biggest financial step of their lives, and upfront costs like stamp duty can be a real barrier. Budget 2027 helps by extending the stamp duty exemption for first-time buyers and widening it to cover more expensive homes.

What changed

The existing stamp duty exemption gives first-home buyers a full exemption on homes priced up to RM500,000. It currently applies to sale and purchase agreements (SPAs) executed from 1 January 2021 to 31 December 2027.

Budget 2027 proposes two changes:

A longer period. The exemption would cover qualifying SPAs executed from 1 January 2027 to 31 December 2030.
A higher price range. A partial exemption is added for more expensive homes.

How the exemption works

Property price	Stamp duty treatment
Up to RM500,000	Full exemption on the instrument of transfer and the loan agreement
RM500,001 to RM750,000	Full exemption on the first RM500,000, and a 50% exemption on the remaining portion

For example, for a qualifying first home priced at RM700,000, the first RM500,000 would be fully exempt, while the remaining RM200,000 would receive a 50% exemption.

An illustration of the saving

As a rough illustration, not an official calculation, stamp duty on the transfer of a RM500,000 property at the prevailing rates would be around RM9,000, and the loan agreement carries its own duty on top. A full exemption removes these costs, which for many buyers is a meaningful share of their upfront cash. The actual amount depends on your property price and loan size.

Who qualifies?

The exemption is subject to eligibility requirements, including Malaysian citizenship and first-home ownership conditions. Other conditions, such as property type and how many times the exemption can be used, will follow the final guidelines.

This is not an income tax relief

Stamp duty is separate from income tax. This measure is a stamp duty exemption on property documents. You do not claim it through your annual tax return, and it does not affect your income tax relief. It is usually applied when the instruments are stamped with the Inland Revenue Board.

Details still to be confirmed

As the slide notes, implementation arrangements and eligibility criteria will be confirmed by the government. Watch for the exact conditions, how the partial exemption is calculated, and any changes to the application process. Proposals take effect only once the relevant orders are gazetted.

What to do now

Check your eligibility. Confirm you are a Malaysian citizen and do not already own a property that would disqualify you.
Time your SPA carefully. The exemption depends on the date your SPA is executed, so discuss timing with your lawyer.
Budget for other costs. Legal fees, valuation fees and other charges still apply even where stamp duty is exempt.
Confirm with your lawyer. Ask for a written breakdown of which duties are exempt before you commit.

Speak to AdrianYeo Tax

Buying property raises tax and financial questions beyond stamp duty, from loan structuring to future capital gains. Our chartered accountants can help you plan your purchase with the full picture in mind.

Book a tax consultation today!

Budget 2027: RM16 Billion for STR and SARA. What Households Can Expect

Sun, 01 Nov 2026 13:56:59 +0800

Not every benefit in Budget 2027 comes through the tax system. For many households, direct assistance matters just as much. The government will increase the combined allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM16 billion in 2027, up from RM15 billion this year.

What are STR and SARA?

STR is cash assistance for eligible households.
SARA is a living-assistance credit that can be used to buy basic necessities at participating outlets.

Both are assistance programmes, separate from the income tax system.

What Budget 2027 announced

For STR recipients: All STR recipients will receive SARA of up to RM150 a month, or up to RM1,800 a year, in 2027. This is expected to benefit up to nine million recipients.

For other Malaysians: Adults aged 18 and above who do not receive STR will get RM100 in SARA MADANI assistance, paid twice. The first payment is scheduled before Hari Raya Aidilfitri 2027, and the second in conjunction with the country’s 70th Independence Day. The government says this could benefit up to 13 million Malaysians, including those in the M40 group.

Group	SARA assistance in 2027
STR recipients	Up to RM150 a month (up to RM1,800 a year)
Malaysians aged 18 and above who are not STR recipients	RM100, paid twice

More places to use SARA

SARA will also be allowed for purchases of wet and fresh produce at 216 farmers’ markets (tamu) run by the Federal Agricultural Marketing Authority (FAMA) nationwide. The government also aims to increase the number of participating small grocery shops to 10,000 next year, so that recipients have more choice of outlets close to home.

What is still to be announced

As the slide notes, several details are still to come. The government has yet to publish the exact disbursement dates, eligibility requirements, details of participating premises and, for STR, the specific cash amounts for 2027. Please rely on official announcements from the Ministry of Finance and the relevant agencies for confirmation.

What households should do now

Check your STR status. SARA of up to RM150 a month depends on being an STR recipient, so make sure your household information is up to date in the system.
Watch for official dates. Payment dates and redemption arrangements are not yet confirmed.
Beware of scams. Assistance programmes are often used by fraudsters. Only use official government channels, and never share your personal details or OTP with anyone claiming to process your payment.
Plan your budget realistically. Treat the assistance as a supplement to your household budget until the final details are released.

The bigger picture

Budget 2027 combines several layers of support. Direct assistance like STR and SARA helps lower-income households. Tax relief and lower tax rates help middle-income taxpayers. A higher minimum wage lifts income from work. Understanding which measures apply to you is the first step to making the most of them.

Speak to AdrianYeo Tax

Whether you are an individual, a family or a business owner, we can help you understand how Budget 2027 affects your finances and plan ahead.

Book a tax consultation today!