Malaysia's Income Tax (Women Returning to Work) (Exemption) Order 2026, gazetted on 9 June 2026, exempts eligible returning women from gross employment income tax for up to 12 months across years of assessment 2024 to 2028, provided they took a career break of at least 24 months after October 2017 and earn a minimum of MYR 5,000 monthly in new employment.
Malaysia has gazetted the Income Tax (Income of Approved Individual) (Women Returning to Work After Ceasing Employment Temporarily) (Exemption) Order 2026 on 9 June 2026. The Order grants eligible women an income tax exemption on gross employment income for a continuous period of up to 12 months. The order is effective from the year of assessment 2024 through 2028.
Criteria for approved individuals
To qualify for the tax exemption, a woman must meet several criteria:
- Citizenship & residency: She must be a Malaysian citizen and a resident of Malaysia.
- The career break: She must have ceased employment and had no employment income for at least 24 consecutive months on or after 28 October 2017.
- Prior experience: She must have had at least three years of full-time work experience before her career break.
- Age: She must not be older than 58 years at the time of her application.
- New employment:
- She must sign a full-time employment contract in Malaysia for at least 24 months between 1 January 2023 and 31 December 2028.
- She must have already worked for at least 12 consecutive months under this new contract.
- The gross monthly income from this new contract must be at least MYR 5,000.
The exemption details
The tax exemption applies to gross employment income for a period not exceeding 12 consecutive months.
Eligible women must apply through Talent Corporation Malaysia Berhad between 1 January 2024 and 31 December 2027. TalentCorp is responsible for verifying that all conditions are met.
The exemption period begins in the year of assessment when the individual makes the “option” for it, which must be the year the application is received or the following year. Even if exempt from paying the tax, the individual is still required to submit all necessary tax returns or account statements as required by the Income Tax Act 1967.
Restrictions and exclusions
The exemption excludes women employed by companies they control, sole proprietorships, or close family members, and cannot be claimed by those who already benefited from the 2019 equivalent order.
