Malaysia imposes sales tax on import of low value goods
On 1 January 2024, Malaysia imposed a 10% sales tax on imported low-value goods (LVG) sold in the country. The LVG rules came into effect on 1 January 2023 and were initially intended to be effective from 1 April 2023. However, it was postponed
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Malaysia offers 2-month deferral on unlisted share gains tax
On 29 December 2023, Malaysia released the Income Tax (Exemption) (No. 7) Order 2023 in the Official Gazette, which provides a deferral of capital gains taxation on the disposal of unlisted shares. Earlier, Malaysia’s new Finance (No. 2) Act
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Malaysia releases practice note on tax treatment of copyright and software payments to non-residents
On 5 December 2023, the Inland Revenue Board of Malaysia (IRBM) announced Practice Note No. 3/2023, in which it clarified the Tax treatment of copyright and software payments made by distributors and resellers to non-residents. In general,
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Malaysia: House of representatives passes finance bill (No. 2) 2023, including pillar two
On 28 November 2023, Malaysia’s Dewan Rakyat, also known as the House of Representatives, passed the Finance (No. 2) Bill 2023. Earlier, the House of Representatives, which is the lower house of the Parliament of Malaysia, deliberated the
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Malaysia: IRBM publishes guidance on investment tax allowance
On 10 November 2023, the Inland Revenue Board of Malaysia (IRBM) issued Public Ruling No. 4/2023, providing guidance on the investment tax allowance for companies involved or planning to engage in business activities related to promoted activities
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Malaysia announces tax proposals for 2024 Budget
On 13 October, Malaysian Prime Minister and Finance Minister Anwar Ibrahim tabled the government’s 2024 budget. The budget includes tax proposals related to corporations such as: Capital gains tax on disposal of unlisted shares: In line
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Malaysia revises public ruling on tax incentive for BSCs investors
On 4 October 2023, the Inland Revenue Board of Malaysia (IRBM) released Public Ruling No. 2/2023, which outlines the tax incentives offered to an investor who has invested in a BioNexus status company in Malaysia. The tax incentive granted to an
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Malaysia gazettes rules on deductions for tec-based companies listing on stock market
On 7 August 2023, the Malaysian official gazette published “Income tax (deduction for expenses in relation to listing on main market, access, certainty, efficiency (ace) market or leading entrepreneur accelerator platform (leap) market of Bursa
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Malaysia: IRBM gazettes APA Rules 2023
On 29 May 2023, the Malaysian Inland Revenue Board of Revenue (IRBM) published the Income Tax (Advance Pricing Arrangement) Rules 2023 ("APA Rules 2023") in their gazette with the following key changes. Taxpayers engaged in cross-border
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Malaysia: IRBM publishes transfer pricing rules 2023
On 29 May 2023, the Malaysian Inland Revenue Board of Revenue (IRBM) officially published Order No P.U. (A) 165 (TP Rules 2023) introducing a new transfer pricing documentation process effective from assessment year 2023 onwards. The main changes
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Malaysia: Parliament adopts finance bill 2023
On 3 April 2023, the Dewan Rakyat passed the Finance Bill 2023 with the following key amendments related to corporate tax measures. Effective from YA 2023, it has been proposed to reduce the preferential tax rate for MSMEs by two percentage
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Malaysia: PM presents the revised budget for 2023
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
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Malaysia: IRBM issues FAQs to clarify MAP guidelines
On 1 February 2023, the Inland Revenue Board of Malaysia (IRBM) has issued a list of frequently asked questions (FAQs) on the mutual agreement procedure (MAP) to provide further clarification to the 2017 MAP guidelines. In relation to the
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Malaysia: IRBM issues public ruling on tax incentives for investments in R&D companies
On 29 December 2022, the Inland Revenue Board of Malaysia (IRBM) issued Public Ruling No. 12/2022 and Public Ruling No. 13/2022, on tax incentives for investments in R&D companies. The objective of this Public Ruling (PR) is to provide an
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Malaysia: IRBM issues guidelines for the tax treatment of dormant labuan entities
On 20 October 2022, the Inland Revenue Board of Malaysia (IRBM) has issued a guideline providing clarification on the tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990. Labuan entity is considered
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Malaysia: Corporate tax proposals in budget 2023
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
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Malaysia publishes guidelines on tax treatment of income received from abroad
On 29 September 2022, the Malaysian Inland Revenue Board published its guidelines on tax treatment in relation to income which is received from abroad. The objective of the guideline is to explain the tax treatment of foreign income received in
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Malaysia: IRBM issues guidance on tax treatment of digital currency
On 26 August 2022, the Inland Revenue Board of Malaysia (IRBM) has published guidance on income tax treatment in respect of e-CT which includes general tax treatment of digital currencies or digital tokens. The Guidelines applies to any person that
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