As Malaysia enters tax reporting season, many finance and procurement teams are asking: Are corporate gifts tax deductible in Malaysia, and how does buying from a certified social enterprise like Batik Boutique impact tax efficiency, transparency, and overall cost?
This guide breaks down tax rules, SST exemption and why large organisations in finance, tech, and corporate sectors increasingly choose ethical gifting partners.
1. When Are Corporate Gifts Tax Deductible in Malaysia?
Under LHDN (Inland Revenue Board of Malaysia) rules, corporate gifts are considered entertainment expenses, but certain gifts qualify for full deductibility.
Client Gifts — 50% or 100% Deductible
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LHDN’s Public Ruling on Entertainment Expenses states:
Unbranded gifts to clients → 50% deductible -
Branded gifts with your company logo → 100% deductible (treated as advertising, not entertainment)
This is one of the biggest reasons large companies order logo-branded corporate gifts — they become fully deductible business expenses.
This is a core example of how corporate gifts tax deductible in Malaysia can significantly reduce your net business costs.
Employee Gifts — 100% Deductible
Employee appreciation gifts are considered staff welfare and are fully tax deductible.
General reference (LHDN official portal):
Examples of fully deductible employee gifts:
- Festive hampers
- Appreciation gifts
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Performance recognition gifts
2. Why Batik Boutique Gifts Have No SST (Transparent Pricing)
Malaysia’s Sales & Service Tax (SST) system applies only to taxable goods and services above certain thresholds.
Batik Boutique is a certified social enterprise that falls under SST-exempt categories, meaning:
✔ 0% SST applied
✔ No hidden 6–10% tax added
✔ Clear, transparent invoicing for corporate procurement
For a large order (e.g. RM50,000), avoiding SST saves up to RM3,000 instantly.
For procurement, audits, and tax documentation, this transparency is a major advantage — one reason large finance, banking, FMCG, and tech firms prefer us.
Again, this supports strong procurement compliance for companies trying to maximise how corporate gifts tax deductible in Malaysia align with cost-efficiency.
3. Why Large Companies Benefit the Most
Combining full tax deductibility, SST exemption, and ethical sourcing creates major financial and CSR value.
Key benefits for enterprise clients:
- Lower net costs (especially with 100% deductible branded gifts)
- Transparent invoices with no SST surprises
- Supports ESG & social procurement strategies
- Boosts internal & external brand storytelling
- Clear documentation for finance teams
- Supports Malaysian artisans and job creation
According to recent market research, the gifting industry was valued at approximately $765 billion in 2023 and is projected to exceed $1.2 trillion by 2029, showing how important gifting is for retention and relationship-building.
4. Why Batik Boutique Is the Ideal Tax-Smart Corporate Gifting Partner
We provide premium handcrafted gifts while supporting social impact — all with full financial transparency.
✔ SST-EXEMPT — more value for your budget
✔ 100% DEDUCTIBLE options — with logo-branded gifts
✔ Accredited SOCIAL ENTERPRISE status
✔ Supports ESG & sustainability goals
✔ Clear, audit-ready documentation
✔ Ideal for large procurements in finance, tech & MNC sectors
Companies maximise savings on corporate gifts tax deductible in Malaysia while contributing directly to social impact.
