Tax in Motion Issue 2/2025

Stamp duty guidelines – Introduction and financing instrument for hire purchase goods

The Inland Revenue Board (IRB) has issued the following:

• Guidelines on the introduction of stamp duty under the Stamp Act 1949 

• Guidelines on stamp duty for financing instruments for the purchase of goods listed under the First Schedule of the Hire Purchase Act 1967 

Substance requirements for fit and proper full-time employees of Labuan entities

Further to the issuance of the gazette orders on fit and proper person for Labuan entities, the IRB has issued the Guidelines on Substance Requirements for Fit and Proper Full-Time Employees of Labuan Entities dated 5 November 2025.

Guidelines for application of approval under section 44(6) of Income Tax Act 1967

The IRB has issued an updated Guidelines for Approval of the Director General of Inland Revenue under subsection 44(6) of the Income Tax Act 1967 (ITA 1967) for Institution / Organisation / Fund which replaces the previous version issued on 20 August 2024. 

Single Family Office guidelines

The Securities Commission (SC) has issued the following:

• Guidelines on Single Family Office (SFO) Incentive Scheme

• FAQ on SFO incentive scheme (revised)

Guidelines on deduction for approved contributions

The Ministry of Finance has issued the following documents:

• Guidelines on Application for Tax Deduction under Section 34(6)(h) of the ITA 1967 - deduction for the expenditure incurred on the provision of services, public amenities, and contribution to a qualifying charity or community project
• Guidelines on Application for Tax Deduction under Section 34(6)(ha) of the ITA 1967 - deduction for the expenditure incurred on the provision of infrastructure available for public use

Both guidelines are effective from 15 September 2025.

Public Ruling 3/2025 – Tax Treatment on Asset-Backed Securitisation

The IRB has issued PR 3/2025 – Tax Treatment on Asset-Backed Securitisation (“PR 3/2025”).

PR 3/2025 explains the tax treatment under the Income Tax Regulations (Asset-Backed Securitisation) 2014 which applies to:

• an Originator, and

• a Special Purpose Vehicle 

in an Asset-Backed Securitisation transaction authorized by SC on or after 1 January 2013.

Application for tax clearance letter for individuals – updated operational guidelines

The IRB has, on 1 November 2025, issued the updated Operational Guideline No. 2/2024 - Tax Clearance Letter Application Procedure for Individuals which supersedes the version dated 1 January 2024.