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Malaysia: Tax developments summary (March 2026)

Guidance on tax treatment for unit holders, stamp duty remission in Forest City, revised service tax rules for IT services, and updates to customs regulations.

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march 11, 2026

The KPMG member firm in Malaysia has prepared its monthly report for March 2026, focusing on updates to tax treatment, stamp duty remission, service tax guidance, and indirect tax legislation.

  • Tax treatment for unit holders and profit distribution vouchers: The Malaysian Inland Revenue Board (MIRB) has issued Practice Note No. 1/2026, clarifying the tax treatment for income distributions from retail money market funds (RMMFs).
  • Stamp duty remission guidelines for Forest City special financial zone: The Iskandar Regional Development Authority (IRDA) has published guidelines for a 50% stamp duty remission on property transfers and financing agreements in the Forest City special financial zone.
  • Revised service tax guide on IT services: The Royal Malaysian Customs Department (RMCD) on February 26, 2026, released a revised guide clarifying service tax treatment for IT service providers.
  • Updates to indirect tax legislation: Effective February 16, 2026, amendments to the customs regulations include new customs locations and anti-dumping duties adjustments.

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