Tax in Motion Issue 6/2026

e-Invoice: Extension of flexibilities for MSMEs and accelerated capital allowance

In a media statement released on 26 July 2024, the Inland Revenue Board (IRB) announced that accelerated capital allowance (ACA) on ICT equipment for implementation of e-Invoicing will be given to taxpayers who have successfully implemented e-Invoicing without the need to use certain flexibilities provided by IRB.

The following gazette orders, providing the abovementioned ACA, have been issued:

• Income Tax (Accelerated Capital Allowance) (Information and Communication Technology Equipment for the Implementation of Electronic Invoice) Rules 2026
• Income Tax (Accelerated Capital Allowance) (Development Cost for Customised Computer Software for the Implementation of Electronic Invoice) Rules 2026

Stamp Duty Audit Framework – Updated

The IRB has, on 20 April 2026, issued an updated Stamp Duty Audit Framework, dated 1 January 2026. It replaces the Stamp Duty Audit Framework dated 1 January 2025.

Exemption from restriction on deduction for payments made to Labuan International Commodity Trading Companies

The Income Tax (Labuan Company) (Exemption) Order 2026 has been gazetted to extend the exemption from the requirement to restrict tax deduction under the Income Tax Act 1967 for certain types of payment made by a resident in Malaysia to a Labuan company undertaking a qualifying activity under the Global Incentives for Trading programme until year of assessment (YA) 2030.

Tax incentive for tour operators

Following the announcement in Budget 2026, the Income Tax (Tour Operator Company) (Exemption) Order 2026 has been gazetted and is effective for YAs 2026 and 2027.