Malaysia: Indirect tax measures, Finance Act 2020

Malaysia: Indirect tax measures, Finance Act 2020

The Finance Act 2020, published in the official gazette on 31 December 2020, does not reflect material differences from the Finance Bill 2020 and has an effective date of 1 January 2021.


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Regarding indirect tax, there were no material differences from the proposed indirect tax measures in the tax bills and in the tax regulations. The indirect tax measures also have an effective date of 1 January 2021.

Changes in the indirect tax regulations that are effective 1 January 2021 include:

  • Additional drawback conditions concerning cigarettes, tobacco products, and electronic cigarettes
  • Permitting foreign registered person to issue credit notes and debit notes in certain instances

Read a January 2021 report prepared by the KPMG member firm in Malaysia

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