Malaysia’s Budget 2026: Key Tax Highlights for Businesses and Individuals

On 10 October 2025, Prime Minister Datuk Seri Anwar Ibrahim tabled Malaysia’s Fourth MADANI Budget: A Budget for the People, setting a record allocation of RM470 billion.

Budget 2026 focuses on enhancing national competitiveness, raising living standards, and strengthening governance, while reinforcing Malaysia’s commitment to fiscal prudence and structural reform. From accelerated capital allowances for digitalisation to new tax reliefs for households, this budget introduces significant measures that will impact businesses and individuals alike.

BoardRoom is committed to support the businesses and individuals in navigating to these measures, driving compliance and achieving sustainable growth in the evolving tax landscape.

Download our comprehensive Budget 2026 Tax Highlights Report to explore:

• Key business tax reforms and incentives: Budget 2026 introduces targeted measures to drive reinvestment, digitalisation, and competitiveness.
• Individual measures tax and tax reliefs: While new reliefs are introduced to ease living costs, profit distributions from LLPs to individual partners will now be taxed, ensuring greater equity across business structures.
• Revenue enhancement measures: To strengthen fiscal sustainability, the Government is enhancing tax base through selective indirect tax and stamp duty adjustments.

If you have any questions, please email our regional tax team at [email protected].