The Public Ruling updates the tax treatment and shipping income exemptions for qualifying Malaysian residents, replacing the 2012 edition.
RegFollower Desk
The Inland Revenue Board of Malaysia (IRBM) has issued Public Ruling No. 1/2025 on 15 May 2025, to clarify the tax treatment of Malaysian ships and the exemption of shipping income for qualifying Malaysian residents.
Public Ruling No. 1/2025 supersedes the first edition, issued in December 2012.
The key updates include:
Tax exemption
Resident entities (company, partnership, sole proprietorship, etc.) engaged in qualifying shipping businesses (transporting passengers/cargo or chartering Malaysian ships) are eligible for a 70% tax exemption on statutory income. However, a full exemption, initially granted from the year of assessment (YA) 2012, has been extended to YA 2026.
Revisions
The ruling has undergone significant amendments, expansions, and reorganization to reflect these extensions and other related changes.
