Malaysia gazetted the Income Tax (Unit Trust in relation to Income Received in Malaysia from Outside Malaysia) (Exemption) 2024 (Amendment) Order 2026, extending the exemption on foreign-sourced income until December 2030. 

RF Report

Malaysia has gazetted the Income Tax (Unit Trust in relation to Income Received in Malaysia from Outside Malaysia) (Exemption) 2024 (Amendment) Order 2026 on 27 July 2026.

This legislation extends the tax exemption period for foreign-sourced income received in Malaysia by qualifying unit trusts.

Effective 1 January 2027, the amendment extends the exemption’s expiry date from 31 December 2026 to 31 December 2030, providing an additional four years of tax relief.

Earlier, Malaysia issued the Income Tax (Unit Trust in Relation to Income Received in Malaysia from Outside Malaysia) (Exemption) Order 2024, granting qualifying unit trusts an income tax exemption on foreign-sourced income received in Malaysia. The exemption applies to gross income from all sources under section 4 of the Income Tax Act 1967 received during the basis period for a year of assessment.