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Malaysia: Tax changes related to stamp duty, sales and service tax, and e-invoicing

Announced by Minister of Finance on January 5, 2026

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january 6, 2026

The Minister of Finance on January 5, 2026, announced the following tax measures:

  • Voluntary disclosure program for stamp duty for a six-month period, from January 1, 2026, to June 30, 2026
  • Various changes to sales and service tax, including:
    • Reduction in service tax rate on leasing services from 8% to 6% effective January 1, 2026
    • Sales tax exemption on raw materials or critical inputs for manufacturing of livestock and agricultural products effective January 1, 2026
    • Extension service tax exemption on non-reviewable contracts for construction services for another year to June 30, 2027
  • Updated electronic invoicing (e-invoicing) Specific Guideline (Version 4.6) and updated General Frequently Asked Questions (FAQs) (replacing the e-Invoice Specific Guideline (Version 4.5) dated December 7, 2025, and General FAQs dated December 10, 2025) which include:
    • Extended interim relaxation period to 12 months (i.e., until December 31, 2026) for taxpayers in Phase 4 (taxpayers with an annual turnover or revenue of up to RM5 million) of the e-invoicing implementation which begins January 1, 2026 
    • Permission for wholesalers and retailers of construction materials to issue consolidated e-invoices

Read a January 2026 report prepared by the KPMG member firm in Malaysia

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