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Malaysia: Summary of income and indirect tax developments (February 2024)

Income tax, indirect tax, and electronic invoicing

February 7, 2024

The KPMG member firm in Malaysia prepared a monthly summary of tax developments [PDF 3.2 MB] that covers income tax, indirect tax, and electronic invoicing (e-invoicing).

Income tax

  • Exemptions from capital gains tax and tax on foreign-sourced income for unit trusts
  • Capital gains tax return form (CGTRF) filing program, sample CGTRF, and explanatory notes
  • Income tax exemption for an Iskandar Development Region status company
  • Deduction for investment in a BioNexus status company
  • Ministry of Tourism, Arts and Culture (MOTAC) guidelines for tax deduction for sponsorship of arts, cultural and heritage activities
  • Guideline on application for approval under section 44(6) of the income tax law in relation to welfare funds for public hospitals, private hospitals, and teaching hospitals
  • Malaysian Investment Development Authority’s updated guideline and procedures for ship building and ship repairing (SBSR) incentive

Indirect tax

  • Indirect tax legislation updates
  • Proposed increase in service tax rate and expansion of taxable services
  • Royal Malaysian Customs Department guide on exemption from sales tax registration

E-invoicing

  • Malaysian Inland Revenue Board’s e-invoicing industry-specific “frequently asked questions” (FAQs)

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