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TaXavvy Issue 1/2025
In this issue:
MIDA guidelines - Global Services Hub incentive
The Malaysian Investment Development Authority (MIDA) has issued the Guidelines for Global Services Hub Tax Incentive to provide guidance and details on the tax incentives available for multinational corporations which use Malaysia as a base for regional and global operations.
MIDA guidelines - Digital Ecosystem Acceleration (DESAC) Scheme
MIDA has issued the following guidelines which outline the incentive scheme for companies undertaking digital infrastructure projects in Malaysia:
Guidelines and Procedures for the Application of DESAC Scheme; and
Guidelines for Sustainable Development of Data Centre.
Global Minimum Tax
The implementation of Global Minimum Tax (GMT) in year 2025 was announced in Budget 2024 with the legislative provisions incorporated into Part XI of the Income Tax Act 1967 (ITA 1967) via the Finance (No. 2) Act 2023.
The Inland Revenue Board (IRB) has now issued the Guidelines: The Implementation of Global Minimum Tax in Malaysia. In addition, the FAQ on implementation of the GMT in Malaysia has also been updated as at 6 December 2024.
Extensions of incentives and exemption
The extensions for the following have been gazetted:
- Foreign-sourced income exemption
- Tax deduction for contributions for Smart AI-Driven Reverse Vending Machines
- Tax exemption for solar leasing
Income Tax (Islamic Securities) (Exemption) Order 2024
Following the Budget 2024 proposal to provide tax exemption on income from Islamic securities selling and buying, the Income Tax (Islamic Securities) (Exemption) Order 2024 has been gazetted and is effective from YA 2024.
Tax deduction for issuance cost of SRI-linked sukuk
Following the announcement in Budget 2023, the Income Tax (Sustainable and Responsible Investment Linked Sukuk) Rules 2024 has been gazetted.
Stamp duty exemption for Micro Financing Scheme
Further to the Budget 2025 announcement, the Stamp Duty (Exemption) (No. 9) Order 2024 has been gazetted.
Tax exemption on sports victory cash prize
The Income Tax (Sports Victory Prize Scheme) (Exemption) Order 2024 has been gazetted to provide income tax exemption on the prize money received by athletes and is effective from YA 2024.
Mandatory use of electronic form in submitting the statement of payment to agents
The IRB has issued a media release on 31 December 2024 on the mandatory use of electronic form in submitting the statement of payment (e-107D) under section 107D of the ITA 1967 (withholding tax for payments to agents, dealers or distributors).
Labuan bills
The following bills have been passed at Dewan Negara:
Labuan Companies (Amendment) Bill 2024
Labuan Trusts (Amendment) Bill 2024
Labuan Foundations (Amendment) Bill 2024
Labuan Limited Partnerships and Liability Partnerships (Amendment) Bill 2024
The main purpose of the amendment is to introduce new provisions relating to the reporting framework and disclosure of beneficial ownership information.
The bills will become law upon completion of the legislative process.
TaXavvy is a newsletter issued by PricewaterhouseCoopers Taxation Services Sdn Bhd. While every care has been taken in compiling this newsletter, we make no representations or warranty (expressed or implied) about the accuracy, suitability, reliability or completeness of the information for any purpose. PricewaterhouseCoopers Taxation Services Sdn Bhd, its employees and agents accept no liability, and disclaim all responsibility, for the consequences of anyone acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Recipients should not act upon it without seeking specific professional advice tailored to your circumstances, requirements or needs.
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