There is still apprehension for some employees who are reluctant to come back to the office, with the pandemic many organisations practiced Work From Home which was the only option available during that period. However with the lifting of all Covid-19 restrictions and more than 90% of the population inoculated, employees, are asked to return to the office in full force, however many are still unconvinced or prefer alternative options and feel they still can be productive.
In essence, many would like to have Flexible Work Arrangements (FWA) that will enable them to have a better work-life balance, which has led to many companies also adopting FWA policies that allow employees to vary their work arrangements to suit their individual needs.
In encouraging FWA as a progressive concept of working, TalentCorp has advocated and gotten the Ministry of Finance and the Inland Revenue Board to offer Flexible Work Arrangements Income Tax Deduction to companies that implement FWA policy for their staff.
Thomas Mathew, Group Chief Executive Officer of TalentCorp said, “As the Ministry of Human Resources’ agency tasked to help steer the country’s talent strategy, we are committed to advocating for the wider adoption of FWA in Malaysia.”
“We are also proud to be the sole mandated agency by the Ministry of Finance and the Inland Revenue Board to facilitate the FWA Income Tax Deduction and the upcoming FWA Development Grant,” he added.
Set to be open for applications in the near future, the upcoming FWA Development Grant will be available for companies that have yet to implement FWA and have trouble doing so due to financial constraints. The grant will cover FWA Implementation, FWA workshops for HR, and a childcare centre grant.
Announced by the Prime Minister on 5 June 2020 as part of the National Economic Recovery Plan, or Pelan Jana Semula Ekonomi Negara (PENJANA), it is one of the measures taken to aid Malaysia’s economic recovery and propel local businesses.
Applications are for expenses incurred within the period of 1 July 2020 to 31 December 2022. Eligible companies can claim this tax deduction twice, up to a maximum amount of RM500,000 for each year, and up to three consecutive years of assessment starting from the date of implementation approval obtained from TalentCorp.
How to apply for the FWA Income Tax Deduction
Your company must fall into one of these categories to be eligible for the tax deduction:
- A company incorporated under the Companies Act 2016 [Act 777].
- A limited liability partnership registered under the Limited Liability Partnerships Act 2012 [Act 743].
- A partnership registered under the Partnership Act 1961 [Act 135].
