Tax

Environmental Preservation, Social and Governance (ESG) Tax Deduction Rules

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The ESG Tax Deduction Rules [Income Tax (Deduction for Expenditure in relation to Environmental Preservation, Social and Governance) Rules 2025] was gazetted on 23 June 2025. 

The salient points included in the ESG Tax Deduction Rules are as follows:

  • Effective from Year of Assessment (YA) 2024 to YA 2027
  • Tax deduction of up to RM50,000 per YA is allowed on expenditure incurred in relation to the ESG

Read our publication to know more details of the deduction for various ESG expenditures.

ESG Tax Deduction Rules

ESG Tax Deduction Rules

Read our publication to know more details of the deduction for various ESG expenditures.

Download here [602 kb]

We would like to highlight that the ESG Tax Deduction Rules and the Guideline for SME Definition may be subject to changes. For further details, please click on the links above or please contact your respective Grant Thornton tax adviser should you require further guidance.