On 7 October 2022, the Finance Minister, YB Senator Tengku Dato’ Sri Zafrul Tengku Abdul Aziz has announced the nation’s 2023 Budget. The budget includes the following tax proposals related to corporate taxation.
- Reduced the income tax rate for SMEs from 17% to 15% on the first RM100,000 of taxable income.
- Carry-forward of losses for companies in sectors with long gestation period such as forest plantations and hydroelectric projects will be extended from 10 years to 20 years.
- Tax exemption on statutory income for BioNexus status entities increased from 70% to 100%.
- Income from patents and copyright software on qualifying intellectual property will be fully exempted for a period of 10 Yas. The application period for this incentive could be extended until 31 December 2025.
- Effective from 2024 taxpayer will remit tax payments electronically.
- Tax incentives for Ship-building and ship-repairing (SBSR) industry extended for five years (until 31 December 2027)
- For manufacturers of pharmaceutical products- preferential tax rates (0% to 10% for the first 10 years and 10% for the next 10 years) will be extended until 31 December 2025.
- For agriculture sectors- Application period for 100% tax exemption is extended by three years, until 31 December 2025.
- For aerospace- the application period for tax incentives will be extended for another three years.
- 15% global minimum tax and Qualified Domestic Minimum Top-up Tax (QDMTT) in 2024
