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Numerous amendment / exemption / remission / revocation orders, regulations and rules in respect of the Income Tax Act 1967, Labuan Business Activity Tax Act 1990, Promotion of Investments Act 1986, Real Property Gains Tax 1976 and Stamp Act 1949 have been gazetted in December 2018.

The above are covered in the following Highlights:

  1. Harmful Tax Practices and Changes to Tax Incentives

In order to be compliant with the Forum on Harmful Tax Practices, Malaysia has recently made amendments to a number of tax incentives that it offers.  The background to these amendments and activities impacted are discussed in this Highlight.

  1. Tax Incentives for Economic Development Regions

Salient points of the relevant Orders are summarised below:

1.       Exclusion of Intellectual Property and non-Intellectual Property Income in line with the Government’s effort to address issues arising from Malaysia’s participation in the Forum on Harmful Tax Practices.

2.       Inclusion of “Substantial Activity” into the Definition for “Qualifying Company” to facilitate legitimate business operations and arrangements to benefit from Malaysian tax incentives.

3.       Real Property Gains Tax Exemption for Medini in Iskandar Development Region which has been highly-anticipated and now being legislated.

4.       Tax Incentive under the Sabah Development Corridor which includes exemptions from corporate income tax and stamp duty as part of the Government’s initiative to balance the rural-urban development.

  1. Exemption Orders and Remission Orders Relating to 2019 and 2018 Budget

This Highlight covers a number of stamp duty remission and exemption orders as well as real property gains tax exemption orders in respect of 2019 Budget proposals and announcements made by the Ministry of Finance.  Further, it also covers an income tax exemption order that relates to 2018 Budget proposal.

The relevant Highlights can be accessed via the above links.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Contact KPMG

Should you have any questions or require further clarification, please do not hesitate to contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organisation at the following telephone numbers for respective offices:

Petaling Jaya Office

Tai Lai Kok
Executive Director –
Head of Tax and Head of Corporate Tax
ltai1@kpmg.com.my
+ 603 7721 7020

Long Yen Ping
Executive Director –
Head of Global Mobility Services yenpinglong@kpmg.com.my
+ 603 7721 7018

Bob Kee
Executive Director –
Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029

Ng Sue Lynn
Executive Director –
Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271

Soh Lian Seng
Executive Director –
Head of Tax Risk Management
lsoh@kpmg.com.my
+ 603 7721 7019

Nicholas Crist
Executive Director –
Corporate Tax
nicholascrist@kpmg.com.my
+ 603 7721 7022

Dato’ Leanne Koh
Executive Director – 
Corporate Tax
leannekoh@kpmg.com.my
+ 603 7721 7026

Neoh Beng Guan
Executive Director – 
Corporate Tax
bneoh@kpmg.com.my
+ 603 7721 7025

Ong Guan Heng
Executive Director – 
Corporate Tax
guanhengong@kpmg.com.my
+ 603 7721 7027

Chang Mei Seen
Executive Director – 
Transfer Pricing
meiseenchang@kpmg.com.my
+ 603 7721 7028

Ivan Goh
Executive Director – 
Transfer Pricing
ivangoh@kpmg.com.my
+ 603 7721 7012

 

 

 

Evelyn Lee 
Executive Director –
Penang Tax
evewflee@kpmg.com.my
+604 238 2288 (ext. 312)

Regina Lau
Executive Director –
Kuching & Miri Tax
reglau@kpmg.com.my
+6082 268 308 (ext. 2188)

Titus Tseu
Executive Director –
Kota Kinabalu Tax
titustseu@kpmg.com.my
+6088 363 020 (ext. 2822)

Ng Fie Lih
Executive Director –
Johor Bahru Tax
flng@kpmg.com.my
+607 266 2213 (ext. 2514)

Crystal Chuah Yoke Chin
Tax Manager –
Ipoh Tax
ycchuah@kpmg.com.my
+605 253 1188 (ext. 320)