Malaysia: Tax developments summary (February 2026)
Monthly report covering income tax and indirect tax developments
The KPMG member firm in Malaysia has prepared its monthly report for February 2026, covering the following income tax and indirect tax developments.
Income tax
- Malaysian Investment Development Authority (MIDA) guidelines on tax incentives for new investments in the manufacturing sector under the New Investment Framework
- Filing program for mandatory submission of required information and documents through the Malaysian Income Tax Reporting System (MITRS) for Year of Assessment 2026
- Global minimum tax in Malaysia
- Ministry of Tourism, Arts and Culture (MOTAC) updated guidelines on tax deduction for sponsorship of arts, cultural and heritage activities
- Income tax exemption for Islamic financial-related Labuan trading activities
Indirect tax
- Sales tax policy 1/2026
- Service tax policy
- Indirect tax legislation updates
Read a February 2026 report prepared by the KPMG member firm in Malaysia