Malaysia: Tax exemption on income from foreign sources
On 30 December 2021, the Ministry of Finance (MoF) announced that foreign source income derived by resident taxpayers will be exempt from tax from 1 January 2022 to 31 December 2026. The Malaysian government has agreed to exempt foreign-source
See MoreMalaysia: Parliament passes the budget for 2022
On 18 November 2021, the Parliament of Malaysia passed the 2022 budget at the policy stage. The budget includes the following tax proposals related to corporate taxations. To support the Government’s initiative in assisting the affected
See MoreMalaysia: IRBM releases updated FAQs providing new CbCR submission requirement
On 13 September 2021, the Inland Revenue Board of Malaysia (IRBM) has published the updated “frequently asked questions on tax matters during the national recovery plan”. Accordingly, companies in Malaysia responsible for filing the CbCR report
See MoreMalaysia: IRBM announces additional one-month extension to file tax returns
On 19 August 2021, the Inland Revenue Board of Malaysia has announced an additional one-month extension of time to file income tax returns for 2021. Companies/taxpayersCalendar year / accounting period endingGrace PeriodFor individuals,
See MoreMalaysia: BEPS MLI enters into force
On 29 June 2021, OECD has published the updated position of signatories’ countries regarding the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). Accordingly, the MLI entered into
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Malaysia publishes new CbCR notification guidelines using Form C
On 25 May 2021, the Inland Revenue Board of Malaysia announced on its website that starting from the year of assessment (YA) 2021, constituent entities can now furnish the Country-by-Country Reporting (CbCR) Notification using the C Form.
See MoreMalaysia announces new economic package for COVID-19
On 27 March 2021, the Malaysian government issued its second stimulus package to combat the economic impact of the COVID-19 pandemic. The main tax measures are: Tax breaks on tourism extended till Dec. 31. In the previous stimulus package,
See MoreMalaysia releases updated tax guide on digital services
On 1 February 2021, the Royal Malaysian Customs Department published an updated Guide on Digital Services by Foreign Service Provider (FSP), which replaces the prior guide dated 1 August 2020. Effective 1st January 2020, service tax shall be
See MoreMalaysia: IRBM reduces documentation submission timeline on request
On 2 February 2021, the Inland Revenue Board of Malaysia (IRBM) updated its transfer pricing guidelines including new guidance on submission of transfer pricing documentation and penalties. With the introduction of Section 113B of the ITA1967 which
See MoreMalaysia: The Finance Bill 2020 includes transfer pricing measures
On 16 November 2020, Malaysia issued the Finance Bill 2020 (Bill No. DR 17/2020) including following proposals related to transfer pricing provision. Penalties for failure to prepare transfer pricing documentation There is currently no
See MoreMalaysia: IRBM issues updated tax audit framework for finance and insurance
The Inland Revenue Board of Malaysia (“IRBM”) has published an updated Tax Audit Framework for Finance and Insurance (“the Framework”) which revokes Tax Audit Framework - Finance and Insurance dated 1 Jun 2015. The Framework comes into
See MoreMalaysia: Finance Minister tables the budget for 2021
On 6 November 2020, the Minister of Finance Tengku Datuk Seri Zafrul Abdul Tengku Abdul Aziz unveiled the annual budget speech in Parliament for 2021. The following tax measures has been proposed under the budget 2021. A new tax incentive
See MoreMalaysia issues ruling on appeal against assessment and application for relief
On 7 October 2020, the Malaysian Inland Revenue Board (IRB) has published Public Ruling No.7/2020 with the objective to explain the procedures with regard to appeal and application for relief in line with the provisions of the Income Tax Act 1967
See MoreMalaysia ratifies BEPS multilateral convention (MLI)
On 4 August 2020, Malaysia published the Official Gazette PU (A) 224/2020 of 13 July 2020 providing ratification announcement of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI), by way of the Double
See MoreMalaysia publishes updated guide on digital services tax
On 1 August 2020, the Royal Malaysian Customs Department issued an updated guide on digital services by foreign service providers. The Updated Guide replaced the earlier version dated 20 August 2019. Effective 1st January 2020, service tax
See MoreOECD: Revenue Statistics in Asian and Pacific Economies 2020
On 23 July 2020 the OECD published Revenue Statistics in Asian and Pacific Economies 2020. The publication presents important statistics tracking progress on domestic resource mobilisation to support tax policy and reform. This can assist countries
See MoreMalaysia: IRB posts FAQs on advance pricing agreement due to coronavirus pandemic
On 16 June 2020, the Malaysian Inland Revenue Board posted online FAQs on advance pricing arrangement (APA) procedures for businesses due to the coronavirus pandemic. The questionnaire covers the filing of new APA applications; the treatment of
See MoreCOVID-19: Malaysia announces short-term economic recovery plan
On 5 June 2020, the Prime Minister of Malaysia announced a Short-Term Economic Recovery Plan (ERP) in response to COVID-19. The relief plan contains the following tax measures. New tax holiday incentive for foreign manufacturers that relocate
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