Malaysia

Global minimum tax

It has been announced that Malaysia will be implementing the global minimum tax based on the Organisation for Economic Co-operation and Development (OECD) Pillar 2, as well as the qualified domestic minimum top-up tax (QDMTT). The implementation date, however, has not been announced.

Capital gains tax

In line with international best practices, the government will conduct a study with a view to introducing tax on capital gains from disposal of unquoted shares by companies. The capital gains tax is expected to be implemented in 2024 and at a low tax rate. An engagement session will be held by the government with stakeholders to examine the details of the proposal.

Restructuring of investment incentives

A New Industry Master Plan 2030 is expected to be announced in the third quarter of 2023 to outline the direction for the development of an industry that is focused on high-quality activities and the recruitment of local talents. 

In accordance with the Plan, the Investment Promotion Agencies and investment incentives will be restructured towards a tiered tax rate incentive that is outcome-based (high-value employment, high degree of integration of local supply chain, and creation of new industry clusters).

Luxury goods tax

A luxury goods tax is expected to be implemented in 2023. Details of the threshold value and type of items subjected to the luxury tax have yet to be announced.