Tax in Motion Issue 9/2026

e-Invoice Special Voluntary Disclosure Programme

The Prime Minister has announced the implementation of the Special Voluntary Disclosure Programme (SVDP) for e-Invoice until 31 December 2027. Following this, the Inland Revenue Board (IRB) has issued the following documents in respect of e-Invoice matters:

• Media release dated 7 July 2026 on e-Invoice SVDP
• e-Invoice Guideline (version 4.7)
• e-Invoice Specific Guideline (version 4.8)

FAQs on Transfer Pricing Guidelines

The IRB has issued the following FAQs in relation to the Malaysian Transfer Pricing Guidelines 2024 (“MTPG 2024”):

• FAQ on Paragraph 1.5 of MTPG 2024: What You Need to Know
• FAQ on MTPG 2024 Chapter 1 - Scope & Application

Revised Guidelines on Malaysia Digital Status

Malaysia Digital Economy Corporation has announced the release of the revised Malaysia Digital (MD) Status Guidelines, effective 1 July 2026. The Guidelines introduce several updates to the existing MD Status framework, including changes to compliance requirements, qualifying activities and tax incentive references.

MIDA guidelines for Supply Chain Resilience Initiative

As part of the New Incentive Framework announced during Budget 2025, the Malaysian Investment Development Authority issued the Guidelines on the Incentive for Supply Chain Resilience Initiative on 15 July 2026.

Extension of incentives for Tun Razak Exchange Marquee status companies

The following gazette orders have been issued to extend tax incentives for companies with Tun Razak Exchange Marquee status (a qualifying financial institution):

• The Income Tax (Accelerated Capital Allowance) (Tun Razak Exchange Marquee Status Company) (Amendment) Rules 2026 
• Income Tax (Industrial Building Allowance) (Tun Razak Exchange Marquee Status Company) (Amendment) Rules 2026

Extension of tax exemption for social enterprises

Following the Budget 2026 announcement to extend the income tax exemption for Social Enterprises under section 127(3A) of the Income Tax Act 1967, the Ministry of Finance has issued the updated Guidelines on Application for Income Tax Exemption for Approved Social Enterprises.

Tax exemption for women returning to work

Following the Budget 2024 proposal to increase women workforce, the Income Tax (Income of Approved Individual) (Women Returning to Work After Ceasing from Employment Temporarily) (Exemption) Order 2026 has been gazetted on 9 June 2026.

Tax incentive for hiring women returning to work

Further to the Budget 2025 measure on the tax incentive for hiring women returning to work, the Income Tax (Deduction for Employment of Approved Individual) Rules 2026 have been gazetted.

Deduction for flexible work arrangements from YA 2025

Following the Budget 2025 proposal for employers implementing Flexible Work Arrangements, the Income Tax (Deduction for the Costs of Implementation of Flexible Work Arrangements) Rules 2026 have been gazetted and are effective from the YA 2025.

Tax deduction on expenses related to elderly care gazetted

Following the Budget 2025 proposal to incentivise employers to support elderly care, the Income Tax (Deduction for Payment of Care Allowance of Parents and Grandparents) Rules 2026 have been gazetted and are effective from YA 2025.

Deduction for handicraft products by hotel operators

Following the Budget 2023 proposal to support the recovery of the local handicraft industry, the Income Tax (Deduction for Expenditure in relation to Purchase of Handicraft Product) Rules 2026 have been gazetted.

Deduction for rental of non-commercial electric vehicles

Following the Budget 2023 proposal to encourage the utilisation of low-carbon vehicles, and its subsequent extension under Budget 2024, the Income Tax (Deduction for Rental Payments) (Electric Motor Vehicles) Rules 2026 have been gazetted and are effective from YA 2023 to YA 2027.

Deduction for student scholarships from YA 2026

Following the Budget 2026 proposal to enhance access for more students to pursue technical and vocational skills training and higher education, the Income Tax (Deduction for the Sponsorship of Scholarship to Malaysian Student Pursuing Studies at Technical and Vocational Certificate, Diploma, Bachelor’s Degree or Professional Certificate Levels) Rules 2026 have been gazetted.