Malaysia: Exemptions from new capital gains tax for unit trusts

The exemptions will be given for specified exemption periods.

The exemptions will be given for specified exemption periods.

The Finance Minister announced on 16 January 2024 that exemptions will be given to unit trusts in respect of the capital gains tax (CGT) now generally effective as of 1 January 2024, as well as income taxes on the remittance of foreign sourced income (FSI).

The exemptions will be given for specified exemption periods (i.e., 1 January 2024 to 31 December 2028 for CGT and 1 January 2024 to 31 December 2026 for FSI of unit trusts).

Read a January 2024 report prepared by the KPMG member firm in Malaysia that discusses key aspects of the CGT, focusing on challenges in understanding and applying the CGT and what clarifications are needed, including in particular whether the CGT replaces the real property gains tax (RPGT) for companies holding real estate.



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