Kuala Lumpur:Budget 2027's tax measures are designed to provide greater support to lower- and middle-income earners, as stated by the Malaysian Institute of Accountants (MIA).
According to BERNAMA News Agency, MIA's vice-president, Ahmad Syahazan Yaacob, highlighted that the adjustments to individual income tax bands and personal tax reliefs consider the rising living costs and household commitments. These changes aim to enhance tax fairness and support taxpayers, particularly those in the lower- and middle-income brackets.
MIA is the statutory body in Malaysia responsible for developing and regulating the accountancy profession under the Accountants Act 1967. Under Budget 2027, the tax rate for chargeable income between RM70,001 and RM100,000 will be reduced to 18 percent. A new tax band of 24 percent will apply to chargeable income between RM100,001 and RM150,000. Additionally, the personal tax relief limit will increase from RM9,000 to RM12,000, while individuals with chargeable income exceeding RM1 million will face a 30 percent tax rate.
Beyond taxation, Budget 2027 emphasizes governance and accountability in public financial management. Measures to ensure that loan repayments and related interest income collected by Federal Statutory Bodies are used solely for approved purposes aim to reinforce accountability. The proposed Government-Owned Entities Bill is expected to strengthen oversight of government-linked companies and statutory bodies, ensuring clear accountability and effective management of public resources.
Budget 2027 also focuses on the resilience and well-being of small and medium enterprises (SMEs). The SME-focused measures, including tax incentives and facilities for financing and guarantees, capital-raising opportunities, digitalization, AI adoption, export development, and sustainability incentives, have important implications for the accountancy profession.
MIA has also welcomed other initiatives under Budget 2027 related to sustainability, Islamic finance, talent development and education, and digital transformation.