Malaysia - Tax And Revenue Update.

Legal News & Analysis - Asia Pacific - Malaysia - Tax

5 February, 2019

 

Finance Act 2018
 

The Finance Act 2018 has been gazetted on 27 December 2018. Please refer to Sections 3, 31, 63, 69, 71, 83 and 91 as to when the provisions come into operation.
 
Income tax
 
The Income Tax (Amendment) Act 2018 has been gazetted on 27 December 2018. Please refer to Section 1 as to when the provisions come into operation.
 
Further, the following rules have been gazetted on 31 December 2018: 

 

  • the Income Tax (Deductions Not Allowed For Payment Made To Labuan Company By Resident) Rules 2018 have come into operation on 1 January 2019;
  • the Income Tax (Requirements For Insurer Carrying On Re-Insurance Business) Rules 2018 have effect from Year of Assessment 2019; and
  • the Income Tax (Requirements For Takaful Operator Carrying On Re-Takaful Business) Rules 2018 have effect from Year of Assessment 2019. 

 

Sales tax
 

The Sales Tax (Amendment) Act 2018 has been gazetted on 28 December 2018 and has come into operation on 2 January 2019.
 
Further, the following regulations and orders have been gazetted on 31 December 2018 and have come into operation on 1 January 2019: 

 

  • the Sales Tax (Amendment) Regulations 2018;
  • the Sales Tax (Imposition of Sales Tax in Respect of Special Areas) (Amendment) Order 2018;
  • the Sales Tax (Persons Exempted from Payment of Tax) (Amendment) (No. 2) Order 2018;
  • the Sales Tax (Goods Exempted from Tax) (Amendment) (No. 4) Order 2018;
  • the Sales Tax (Customs Ruling) (Amendment) Regulations 2018; and
  • the Sales Tax (Rates of Tax) (Amendment) (No. 3) Order 2018. 

 

A Specific Guide on Sales Tax Deduction Facility (as at 13 January 2019) has been published on the Royal Malaysian Customs Department’s MySST website.
 
Service tax
 
The Service Tax (Amendment) Act 2018 has been gazetted on 28 December 2018 and has come into operation on 2 January 2019.
 
Further, the following regulations and order have been gazetted on 31 December 2018 and have come into operation on 1 January 2019:
 

  • the Service Tax (Amendment) (No. 3) Regulations 2018;
  • the Service Tax (Persons Exempted from Payment of Tax) Order 2018; and
  • the Service Tax (Customs Ruling) (Amendment) Regulations 2018.

 
The Malay version of the following Industry Guides have been published on the Royal Malaysian Customs Department’s MySST website:
 

  1. Perkhidmatan Bercukai Import (as at 9 January 2019)
  2. Perkhidmatan Pembersihan (as at 9 January 2019)
  3. Perkhidmatan Perundingan, Latihan & Tunjuk Ajar (as at 9 January 2019)
  4. Panduan Taman Hiburan (as at 9 January 2019) 

 

Labuan tax
 
The Labuan Business Activity Tax (Amendment) Act 2018 has been gazetted on 27 December 2018 and has come into operation on 28 December 2018.
 
Further, the Labuan Business Activity Tax (Requirements For Labuan Business Activity) Regulations 2018 have been gazetted on 31 December 2018 and have come into operation on 1 January 2019.
 
Customs duty
 
The Customs (Amendment) (No. 2) Act 2018 has been gazetted on 28 December 2018 and has come into operation on 2 January 2019.
 
Excise duty
 
The Excise (Amendment) Act 2018 has been gazetted on 28 December 2018 and has come into operation on 2 January 2019.

 

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For further information, please contact:

 

Abhilaash Subramaniam, Shearn Delamore & Co​

abhi@shearndelamore.com