KUALA LUMPUR: Small and medium enterprises (SMEs) can navigate the evolving tax landscape, optimise their financial performance, and secure a competitive edge in the market by leveraging the measures in Budget 2025 strategically, an academician said. Taylor’s University Malaysia, School of Accounting and Finance head, Prof Dr Nor Shaipah Abdul Wahab, highlighted the importance of SMEs reviewing the expanded sales and service tax, adjusting pricing strategies, and updating accounting systems for compliance.
According to BERNAMA News Agency, Nor Shaipah advised engaging tax advisors to help SMEs assess potential impacts on cash flow and develop mitigating strategies. She emphasized the importance of SMEs staying informed about stakeholder feedback sessions to voice concerns and gain clarity on implementation details.
Nor Shaipah also discussed workforce inclusivity, urging SMEs to identify suitable roles for women re-entering the workforce and assess flexible work arrangements. She recommended updating human
resource policies and collaborating with Talent Corporation Malaysia Bhd to streamline the recruitment process and maximise benefits.
To tackle increased wage expenses, she suggested that SMEs should leverage available tax incentives, explore relevant deductions for capacity-building and software procurement, and consult with tax advisors for financial sustainability. The new tax relief on housing loan interest for first-time homebuyers can aid SMEs in retaining and attracting employees by promoting this benefit in recruitment materials and communications.
Regarding the Smart Logistics Complex (SLC) capital allowance tax incentive, Nor Shaipah advised SMEs to evaluate their logistics operations for efficiency improvements and cost reductions through investments in smart warehouses and advanced logistics technologies. Applying for the tax allowance through the Malaysian Investment Development Authority (MIDA) was also recommended to maximise benefits.
To address the two per cent tax on individual dividend
income exceeding RM100,000 from 2025, Nor Shaipah proposed reviewing dividend distribution policies and consulting with tax advisors on the implications. She suggested potential mitigation strategies such as adjusting dividend payout schedules, exploring alternative shareholder returns, or reinvesting profits into the business.
Finally, on the double tax deduction for expenditure under the Supply Chain Resilience Initiative, Nor Shaipah advised SMEs to identify and document qualifying expenditures, particularly those aimed at enhancing local supply chains and collaborating with multinational enterprises. Engaging with industry regulatory bodies and staying informed about the initiative’s requirements can help SMEs maximise benefits.