On 24 February 2023, Anwar Ibrahim, the Prime Minister and Minister of Finance, presented the revised budget for 2023. The budget was first introduced on 7 October 2022, but Parliament dissolved shortly after that ahead of the November 2022 elections. The revised budget includes similar fiscal measures as proposed in the original budget, with the following additional proposals.
- Both the Malaysian Inland Revenue Board (“MIRB”) and the Royal Malaysian Customs Department (“RMCD”) would grant a full waiver of penalties to taxpayers who voluntarily disclose compliance gaps to these authorities from June 2023 to 2024.
- Introduction of a special tax deduction for hoteliers spending up to RM150,000 on the purchase of qualifying handicraft products made in Malaysia between 1st January 2023 and 31st December 2025.
- Extension of the tax deduction on the cost of listing on the ACE and LEAP markets for a further three (3) years, i.e. H. YA 2023 to YA 2025. In addition, the scope of the deduction is expanded to include the cost of listing technology-based companies in Bursa Main Market.
- The extension of tax incentives for electrical and electronics (“E&E”) manufacturing companies to relocate to Malaysia is set to be extended to 2024.
- Extension of tax incentive for automation in manufacturing, services and agriculture sector for applications received by 31st December 2027.
- Extension of tax incentives for automation in manufacturing, services and agriculture for applications received by 31st December 2027.
