The KPMG member firm in Malaysia has prepared its monthly report for December 2024, covering the following income tax, stamp duty, indirect tax, and individual tax developments.
Income tax
- Bills passed at Dewan Rakyat: The Dewan Rakyat on December 4, 2024, passed the Finance Bill 2024, Measures for the Collection, Administration and Enforcement of Tax Bill 2024, and Labuan Business Activity Tax (Amendment) (No. 2) Bill 2024. These bills must be passed by the Dewan Negara and receive Royal Assent before becoming law.
- Mandatory submission through Malaysian income tax reporting system (MITRS): Effective from the year of assessment (YA) 2025, individuals must electronically submit required information and documents within 30 days after the tax return submission due date. Non-compliance may result in fines or imprisonment.
- Global minimum tax implementation guidelines: The Malaysian Inland Revenue Board (MIRB) issued guidelines for the global minimum tax applicable from January 1, 2025. The guidelines cover the scope, filing obligations, transitional penalty relief, and safe harbors.
Stamp duty
- Exemptions: Exemptions are provided for facilities approved under Bank Negara Malaysia's Fund for small and medium-sized enterprises (SMEs) for certain instruments executed between January 1, 2022, and December 31, 2023.
Indirect tax
- Provision of food and beverage services by golf club and golf driving range operators: The Royal Malaysian Customs Department (RMCD) on December 5, 2024, clarified that food and beverage services by golf clubs and driving ranges are subject to a 6% service tax, while certain processed food products are exempt.
- Service Tax Policy 6/2024 (Amendment No. 1): Issued on November 29, 2024, this amendment provides editorial changes for clarity and extends the exemption for maintenance or repair services for maintenance, repair, and overhaul (MRO) activities until December 31, 2027.
- Legislation updates: Amendments to customs duties and the inclusion of the United Kingdom in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) were gazetted, effective December 1 and December 15, 2024, respectively.
- Customs AViP framework: Issued on November 15, 2024, this framework provides guidance on the implementation of the Compliance Verification Audit Programme (AviP), including audit types and voluntary disclosure mechanisms. Read TaxNewsFlash
- Service Tax (Amendment) (No. 2) Regulations 2024: Gazetted to expand intra-group relief to cover maintenance or repair services. Read TaxNewsFlash
- Pulau 1 indirect tax legislation amendments: Amendments reclassify Forest City as a “designated area” for sales and service tax purposes. Read TaxNewsFlash
Individual (personal) tax
- Equity crowdfunding incentive: The Income Tax (Exemption) (No. 4) Order 2022 provides a tax exemption for investments in equity crowdfunding, extended to December 31, 2026, and includes investments through nominee LLPs.