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Malaysia: Updated global minimum tax FAQs, e-invoicing guidelines; other tax developments (May 2026)

Recent tax developments include updates related to the global minimum tax, stamp duty, indirect tax, and e-invoicing

may 12, 2026

The KPMG member firm in Malaysia has prepared its May 2026 tax developments report, focusing on updates related to the global minimum tax, stamp duty, indirect tax, and e-invoicing.

  • Updated FAQs on global minimum tax (GMT): The Malaysian Inland Revenue Board (MIRB) released version 7.0 of its FAQs, which clarifies that domestic GMT provisions will automatically adopt OECD administrative guidance. The guidance also sets the filing deadline for joint ventures owned by two parent entities with different financial year ends as of the earlier of the two.
  • New stamp duty audit framework: A new framework, effective January 1, 2026, extends the stamp duty audit period to cover the current year and the three preceding years. It also clarifies that the framework does not apply to instruments stamped under the special voluntary disclosure program from January 1, 2026, to June 30, 2026.
  • Temporary relief for re-imported goods: The Royal Malaysian Customs Department (RMCD) has granted a temporary exemption from import duty and sales tax for goods re-imported by their original Malaysian manufacturer due to the Middle East conflict. This relief is effective until December 31, 2026.
  • Amendments to service tax policies: The RMCD issued amendments providing a service tax exemption for brokerage services on shares traded on Bursa Malaysia (effective January 1, 2022) and for fees related to Islamic finance services on a domestic commodity trading platform (effective October 1, 2024). A separate policy requires health screening management service providers to charge service tax starting May 1, 2026.
  • Updated customs duties order for ASEAN-Korea agreement: An amendment to the customs duties order related to the ASEAN-Korea trade agreement became effective on May 1, 2026, updating legal references and schedules in the principal order.
  • Extended relaxation period for e-invoicing: The MIRB has updated its e-invoicing guidelines, extending the interim relaxation period to December 31, 2027, for taxpayers with an annual turnover between RM1 million and RM5 million. The updates also clarify the definition of "related companies" for e-invoicing purposes.

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