Malaysia: Tax developments summary (December 2025)

Monthly report covering income tax, indirect tax, and e-invoicing developments

The KPMG member firm in Malaysia has prepared its monthly report for December 2025, covering the following income tax and indirect tax developments.

Income tax

Bills passed at Dewan Rakyat
Public Ruling No. 5/2025 – Construction contracts
10-year limitation on the approval under subsection 44(6) for institutions / organizations / funds
Updated guidelines on tax treatment on digital currency transactions
Expansion of Iskandar Development Region to include District of Kulai

Stamp duty

Malaysia Inland Revenue Board’s (MIRB’s) guidelines on the imposition of late stamping penalty and stamp duty on instruments of sale and transfer of movable property

Indirect tax

Public Ruling No. 1/2025 – Liability of operator and digital platform service provider (DPSP) to account for tourism received
Public Ruling No. 2/2025 – Claim for refund of service tax under paragraph 34(3)(b) of the Service Tax Act 2018 by foreign missions and international organizations
Sales and tax guide and forms
Indirect tax legislation updates

E-invoicing

MIRB’s revised guidelines on e-invoicing

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Relevant Results

Malaysia: Tax developments summary (December 2025)

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