Property Sale: Income Tax or RPGT?
Property Sale: Income Tax or RPGT? Lessons from Exceptional Landmark When a company sells a property at a substantial profit, does the gain automatically become taxable business income? The High Court’s decision in Ketua Pengarah Hasil Dalam Negeri v Exceptional Landmark Sdn Bhd demonstrates that the answer depends on the commercial substance of the transaction—not […]
Budget 2026 Introduces New Incentive Framework for Manufacturing Businesses
Manufacturing Businesses: Take Note of the New Incentive Framework Under Budget 2026 Budget 2026 introduces a new incentive framework (NIF), under which eligible businesses may enjoy tax incentives of up to 100%. Under the Special Tax Rate (STR), the corporate income tax rate may be reduced to between 0% and 10%. Under the Investment Tax […]
Can a Late Stamp Nearly Sink a Bank’s Case?
Malayan Banking Bhd v Agencies Service Bureau: Can a Late Stamp Nearly Sink a Bank’s Case? A guarantee was dated 17 April 1974, but the evidence showed that it had actually been signed on 16 November 1973. The document was stamped approximately five months late, and the required RM25 penalty had not been paid. As […]
Can Project Expenditure Funded by a Government Grant Still Qualify for a Tax Deduction?
“Can Project Expenditure Funded by a Government Grant Still Qualify for a Tax Deduction?” Key Facts of the Case Landmark Property is a property developer involved in a PPA1M housing project and received a RM104.2 million Facilitation Fund. Following an audit, the tax authorities took the position that part of the project expenditure had been […]
FAQ 5: Understanding the Incentives under Malaysia’s New Incentive Framework
FAQ 5: Understanding the Incentives under Malaysia’s New Incentive Framework Before reviewing FAQ 5, it is important to understand what the New Incentive Framework, or NIF, is and why Malaysia introduced it. The NIF represents Malaysia’s move to reform its investment incentive system into a more targeted and outcome-based framework. Its purpose is not merely […]
Malaysia’s Global Minimum Tax Regime: What to Do After Entering “Yes” in Form C H9a
Malaysia’s Global Minimum Tax Regime: What to Do After Entering “Yes” in Form C H9a Malaysia has formally introduced the Global Minimum Tax (GMT) regime through the Finance (No. 2) Act 2023. The regime includes the Domestic Top-up Tax (DTT) and the Multinational Top-up Tax (MTT). Accordingly, the Malaysia tax authority (LHDN/IRBM) has introduced a […]
The Three Key Criteria for Audit Exemption in Malaysia
The Three Key Criteria for Audit Exemption in Malaysia When applying for an audit exemption, a company should assess three main size criteria: turnover, total assets and number of employees. The applicable thresholds are introduced in three stages: the first-tier thresholds apply in 2025, the second-tier thresholds in 2026, and the third-tier thresholds in 2027. […]