Tax developments (July 2026)

KPMG's monthly tax developments alert aims to provide tax updates for your organization in a timely manner. 

In this edition, we are pleased to highlight some of the notable tax updates and developments since the last update:

• Deduction on rental of electric motor vehicles

• Tax deductions for workforce initiatives

• Double deduction for the sponsorship of scholarships to Malaysian students

• Income Tax (Industrial Building Allowance) (Tun Razak Exchange Marquee Status Company) (Amendment) Rules 2026

• Deduction on purchase of local handicraft product

• Updated Malaysian Investment Development Authority’s guidelines on tax incentives for new investment in the manufacturing sector under the New Investment Framework

• Revised Malaysia Digital Status Guidelines

• Updated guidelines on application for Director General of Inland Revenue’s approval under Subsection 44(11D) for endowment funds and wakaf funds

• Guidelines on the imposition of stamp duty for instruments subject to the First Schedule of the Stamp Act 1949

• Service Tax Policy No. 1/2025 (Amendment No. 5)

• Guide on Refund, Drawback and Appeal for Sales Tax and Service Tax (Version 5)

• Indirect tax legislation updates

• Frequently Asked Questions on Malaysia Transfer Pricing Guidelines 2024

• e-Invoice Special Voluntary Disclosure Programme, Accelerated Capital Allowance, Definition of Business Registration Number for e-Invoicing 

The relevant tax changes can be accessed via the above link.