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Malaysia: Tax developments focusing on transfer pricing, e-invoicing, and investment incentives (July 2026)

Monthly report covers updated transfer pricing FAQs, a new e-invoice voluntary disclosure programme, and manufacturing incentives.

july 14, 2026

The KPMG member firm in Malaysia has prepared its July 2026 tax developments report, focusing on transfer pricing FAQs, new e-invoice special voluntary disclosure programme, and updated manufacturing investment incentives.

The report covers:

  • Deduction on rental of electric motor vehicles
  • Tax deductions for workforce initiatives
  • Double deduction for the sponsorship of scholarships to Malaysian students
  • Income Tax (Industrial Building Allowance) (Tun Razak Exchange Marquee Status Company) (Amendment) Rules 2026
  • Deduction on purchase of local handicraft productas
  • Updated Malaysian Investment Development Authority’s guidelines on tax incentives for new investment in the manufacturing sector under the new investment framework
  • Revised Malaysia digital status guidelines
  • Updated guidelines on application for Director General of Inland Revenue’s approval under Subsection 44(11D) for endowment funds and wakaf funds
  • Guidelines on the imposition of stamp duty for instruments subject to the First Schedule of the Stamp Act 1949
  • Service Tax Policy No. 1/2025 (Amendment No. 5)
  • Guide on Refund, Drawback and Appeal for Sales Tax and Service Tax (Version 5)
  • Indirect tax legislation updates
  • FAQs on Malaysia Transfer Pricing Guidelines 2024
  • E-invoice special voluntary disclosure programme, accelerated capital allowance, definition of business registration number for e-invoicing 

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