On 26 March 2024, Malaysia’s lower house of Parliament (Dewan Rakyat) passed the Income Tax (Amendment) Bill 2024 and Labuan Business Activity Tax (Amendment) Bill 2024. The bills include the following proposed tax-related changes:
Capital gains tax
It clarifies in-scope capital assets, chargeable persons, and outlines the rate applied to the disposal of Section 15C shares. It also includes revisions to the definition of “share” and the “defined value” used to determine if shares of a controlled company based out of Malaysia qualify as Section 15C shares.
On 22 March 2024, the Malaysian Inland Revenue Board (MIRB) responded to the Joint Memorandum by Professional Bodies on Issues Arising related to the 2024 Budget Speech and the Finance (No. 2) Bill 2023. Additionally, on 27 March 2024, the MIRB issued Guidelines on the Tax Treatment of Gains from the Disposal of Capital Assets Received from Outside Malaysia.
E-invoicing
Starting from 1 January 2024, taxpayers who issue consolidated electronic invoices (e-invoices) will be allowed to issue receipts to buyers through any method in addition to the printed form. Additionally, e-commerce platform providers will be mandated to generate self-billed e-invoices.
Revised Tax Payable Estimate
The term “revised estimate” will be expanded to include alterations made in the 11th month, beginning with the year of assessment (YA) 2024.
