A new gazette order gazetted on 9 June 2026 offers a meaningful income tax incentive for women who left the workforce and are now returning to employment. If your company has recently hired, or is considering hiring, such a candidate, this is worth understanding.

Under P.U. (A) 215, a qualifying woman is fully exempt from income tax on her employment income for up to twelve consecutive months. The exemption applies from Year of Assessment 2024 to Year of Assessment 2028.

To qualify, the woman must be a Malaysian citizen, resident in Malaysia, and must have been out of employment for at least 24 consecutive months on or after 28 October 2017. She must also have had at least three years of full-time work experience before she stopped working, be below 58 years of age at the point of application, and earn at least RM5,000 gross per month under the new contract. The employment contract must be for at least 24 months, signed within the period 1 January 2023 to 31 December 2028.

There are restrictions on who counts as an eligible employer. Companies directly or indirectly controlled by the woman herself, sole proprietorships, and businesses employing her through close family members do not qualify.

The application must be made to the Minister through Talent Corporation Malaysia Berhad, from 1 January 2024 to 31 December 2027. The exemption does not remove the filing obligation. The individual is still required to submit her tax return as usual.

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