2024 Budget Updates

The honorable Minister of Finance, YAB Dato’ Seri Anwar bin Ibrahim, tabled the 2024 Budget on 13 October 2023.

The 2024 Budget Touchpoints and additional appendix on tax measures were also released subsequently. We are pleased to provide the key additional updates below for your attention.

Expansion of the scope of taxable foreign-sourced income
Effective from 1 January 2022, foreign source income received in Malaysia by any Malaysian resident person is subjected to income tax. Certain exemptions have been given through the gazette orders. 

It is now proposed that the scope of taxable foreign source income be expanded to include gains from the disposal of capital assets received in Malaysia from outside Malaysia, effective from 1 March 2024. However, exemptions will be given subject to meeting economic substance requirements.

국외원천소득 과세 범위 확대

2022년 1월 1일부터 말레이시아 거주자가 말레이시아로 송금 받은 국외원천소득에 대하여 소득세를 부과하고 있다. 소득세 면제 관련 내용은 관보를 통해 발표되었다.

2024년 3월 1일부터는 과세 대상에 포함되는 국외원천소득의 범위를 확대해서도 말레이시아로 송금된 자본자산 처분이익에 대해서도 소득세를 부과하는 안이 발의되었다. 다만, 경제적 실질 요건이 충족되는 경우에는 소득세가 면제될 것이다.

Assessment under the Labuan Business Activity Tax Act 1990 (LBATA 1990)
It is proposed that the tax assessment under the LBATA 1990 to be based on the current year basis (currently on a preceding year basis), effective from the year of assessment 2025.

1990년 라부안 사업세법(Labuan Business Activity Tax Act 1990)에 따른 평가

현재까지 전년도 기준으로 이루어졌던 1990년 라부안 사업세법에 따른 세금평가를 2025년 과세연도부터는 현재 연도 기준으로 추진하는 방안을 발의하였다.

Pengerang Integrated Petroleum Complex (PIPC)

PIPC will be transformed into a development hub for chemical and petrochemical sectors and the following tax incentives are proposed:

i. Chemical and petrochemical manufacturing company with minimum investment of RM500 million
• Income tax rate of 5% or 10% on income from qualifying activities for a period of up to 10 years, or
• Investment Tax Allowance of 100% for a period of up to 10 years to be set-off against 70% of statutory income.

ii. Developers of industrial areas in the PIPC
• Income tax rate of 10% on the income from sale or renting of land or building for a qualifying project for a period of 10 years.

펭게랑 종합석유단지(Pengerang Integrated Petroleum Complex, PIPC)

펭게랑 종합석유단지를 화학 및 석유화학 분야의 개발 허브로 전환할 계획이며, 다음과 같은 세제 혜택을 부여하는 안을 발의하였다.

i. 투자금액이 5억 링깃 이상인 화학 및 석유화학 제조업체

• 적격 활동으로부터 발생한 소득에 대해 최대 10년간 5% 또는 10%의 소득세율 적용, 또는
• 적격 활동으로부터 발생한 소득에 대해 최대 10년간 투자세 100% 공제 (해당 공제액을 이용하여 과세연도 법정 소득액의 70%까지 상계 가능)

ii. 펭게랑 종합석유단지 내 산업용지 개발업자

• 적격 프로젝트를 위한 토지 또는 건물의 판매 또는 임대로부터 발생한 소득에 대해 10년간 10%의 소득세율 적용

Increase in Service Tax Rate
It is proposed that the Service Tax rate will be increased to 8% from the current 6% on all taxable services except for food and beverage, telecommunication services, vehicle parking space services and logistic services. This is proposed to be effective 1 March 2024.

Expansion of Taxable Services
It is proposed that the scope of Service Tax will be widened to include karaoke centre services, delivery services, brokerage and underwriting services as well as logistic services. This is proposed to be effective 1 March 2024.

Evelyn Lee
Partner - Penang Tax
evewflee@kpmg.com.my
+603 7721 2399

Crystal Chuah Yoke Chin
Associate Director - Ipoh Tax
ycchuah@kpmg.com.my
+603 7721 2714

Regina Lau
Partner - Kuching & Miri Tax
reglau@kpmg.com.my
+603 7721 2188

Titus Tseu
Executive Director - Kota Kinabalu Tax
titustseu@kpmg.com.my
+603 7721 2822

Ng Fie Lih
Partner - Johor Tax
flng@kpmg.com.my
+603 7721 2514