The Ministry of International Trade and Industry (MITI) has issued an announcement regarding the Safe@Work Initiative - Tax Deduction For Expenditure On Provision Of Employees’ Accommodation Subject To A Maximum Amount Of Rm50,000 – announcement as follows:

It is informed that the Ministry of Finance Malaysia (MOF) has approved and gazetted the Income Tax (Deduction for Expenditure on Provision of Employee Accommodation) Rules 2021, P.U. (A) 470 dated 24 December 2021. Accordingly, companies that have applied under MITI Safe@ Work with an evaluation score of 70% and above (please download the CIMS Safe@Work letter as proof of eligibility) is eligible to claim a tax deduction for expenditure on the provision of employees’ accommodation as stated in the gazette provided:

i. companies incorporated under the Companies Commission of Malaysia (SSM) under the Companies Act 2016 (Act 777);

ii. the company carries out manufacturing activities or manufacturing-related services and possesses a Manufacturing License (ML) / ICA Certificate 10 (under the Industrial Coordination Act 1975);

iii. the accommodation of the said employee shall be certified by a Certificate of Accommodation as provided under section 24D of the Minimum Standards of Housing, Accommodation and Employee Facilities Act 1990, but does not include accommodation for directors of the company; and

iv. The allowable deduction is on expenses incurred by the company for the rental of premises for employee accommodation during the period from 1 January 2021 - 31 December 2022.

To read full translated announcement, please refer here:

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