5 Jun - 2 min read
In line with the government’s recommendation for employers to practise a work-from-home policy, Prime Minister Tan Sri Muhyiddin Yassin has announced that the government will offer tax reliefs and insurance coverage benefits to companies that are doing so as a form of support. The incentives are provided as part of the PENJANA Economic Recovery Plan.
According to Tan Sri Muhyiddin, employers that implement a flexible working arrangement (FWA) or enhance their existing FWAs starting from 1 July 2020 will be entitled to further tax deductions. However, the type, limit, and other details of these tax deductions are yet to be announced.
Employees, on the other hand, will enjoy income tax exemptions of up to RM5,000 if they receive electronic devices from their employers to help them with their work. These include mobile phones, notebooks, and tablets, and is effective starting from 1 July 2020. Additionally, employees can claim a special individual income tax relief of up to RM2,500 if they purchase electronic devices as well, effective 1 June 2020.
Aside from allowing income tax exemptions and reliefs, SOCSO will also expand its Employment Injury Scheme (EIS) to include coverage for workers who are involved in accidents while working at home.
The government has allocated a total of RM800 million for this FWA initiative.
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world