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Malaysia: Tax developments summary (February 2026)

Monthly report covering income tax and indirect tax developments

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February 12, 2026

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

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