Tax developments (August 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:

• Further deduction on additional paid leave for the care of child or sick or disabled immediate family member 

• Extension of income tax exemption on foreign source income for unit trusts

• Extension of capital gains tax exemption on remittance of gains from foreign capital assets disposal 

• Malaysian Inland Revenue Board’s guideline for capital gains tax exemption on shares disposal for purposes of Initial Public Offering 

• Malaysian Investment Development Authority guidelines for Supply Chain Resilience Initiative

• Ministry of Finance’s guidelines on application for anti-corruption or corruption prevention education programmes under Subsection 44(11C) of the Malaysian Income Tax Act 1967

• Johor-Singapore Special Economic Zone – stamp duty remission for commercial property buyers

• Malaysian Inland Revenue Board’s clarification on stamp duty for exempted instruments

• Public Ruling No. 3/ 2026 – Determination of Foreign Currency Exchange Rates for Service Tax Invoices and Sales Tax Invoices

• Service Tax Policies

• Indirect tax legislation updates  

• Income Tax (Determination of Chargeable Income of an individual in respect of Limited Liability Partnership’s Profit) Rules 2026

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