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Malaysia: Tax developments summary (January 2026)

Monthly report covering income tax, stamp duty, and indirect tax developments

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january 14, 2026

The KPMG member firm in Malaysia has prepared its monthly report for January 2026, covering the following income tax and indirect tax developments.

Income tax

  • Accelerated capital allowance for speed limitation device 
  • Return form filing program for year 2026
  • Extension of tax deduction for investment made in commercialization projects of non-resource based research and development findings
  • Guideline on capital gains tax exemption on restructuring schemes
  • Guidelines on Labuan trading activity and Labuan non-trading activity
  • Malaysian Income Tax Reporting System implementation commences for more corporate taxpayers
  • Operational Guideline No. 4/2025 – Application for extension of time application for Return Form submission (e-Lanjutan Masa)
  • Public Ruling No. 8/2025 – Tax treatment of micro, small and medium companies
  • Practice Note No. 2/2025 – Explanation in relation to the formula for tax remission on government guarantee loan instruments under the Loans Guarantee (Bodies Corporate) Act 1965 (excluding insurance and takaful industry)

Stamp duty

  • Waiver of stamp duty penalty in the first year of implementation of stamp duty self-assessment system (SDSAS)
  • Operational Guideline No. 3/2025 - Stamping applications through the SDSAS
  • Extension of stamp duty exemptions relating to purchase of insurance / takaful certificates, purchase of first residential property, trading of exchange traded fund and purchase of structured warrants
  • Updated guideline on the imposition of stamp duty on instruments of sale and transfer of movable property

Indirect tax

  • Service Tax Policy 3/2025 (Amendment No. 2)
  • Service Tax guide
  • Indirect tax legislation updates

Tax corporate governance framework

  • Tax corporate governance update

 

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