Annual Tax Compliance in Malaysia: A Practical Guide for Businesses Tax compliance is not a one-off “form-filling exercise” carried out at the end of the year. It is a year-round management process that connects sales, purchases, payroll, related-party transactions, invoicing and financial reporting. Against the background of Malaysian businesses, this article highlights the key areas […]
Is ESOS Expenditure Tax-Deductible? Lessons from CMS Infra Trading v LHDN
In CMS Infra Trading v LHDN [2023] MLRHU 540, the court considered whether expenditure incurred under an Employee Share Option Scheme (ESOS) could be deducted under section 33(1) of the Income Tax Act 1967 (ITA). The key question was whether the ESOS expenditure was incurred wholly and exclusively in the production of income. Section 33(1) […]
Stamp Duty Voluntary Disclosure Programme Extended to 31 December 2026: Businesses Should Act Before the Deadline
The Stamp Duty Voluntary Disclosure Programme (SVDP) deadline has been extended from 30 June 2026 to 31 December 2026. This is certainly good news—but it should not be misunderstood as an invitation to delay. The extension gives businesses an additional six months to regularise documents that should have been stamped but were not. In simple […]
Employment Contract Stamp Duty in Malaysia: Why the 1949 Law Needs Updating
Why Has the Stamp Act 1949 Suddenly Entered the Discussion on Employment Contracts? Recently, many employers, HR professionals and business leaders have been discussing the stamping of employment contracts. This is an issue I have been following closely since last year. At the time, I strongly objected to the Government extending its audit focus to […]
Malaysia’s New Incentive Framework: Phased Implementation for Manufacturing and Services
Before reviewing FAQ 2 on the New Incentive Framework (NIF), it is important to understand what the NIF is. The NIF represents Malaysia’s reform of its investment incentive system. Its objective is to make investment incentives more targeted and outcome-based, guided by the National Investment Aspirations (NIA) and the New Industrial Master Plan 2030 (NIMP […]
Malaysia’s 2026 Tax Deduction for Additional Paid Caregiving Leave
Malaysia’s Income Tax (Deduction for Payment of Additional Paid Leave for the Care of Child or Sick or Disabled Immediate Family Member) Rules 2026 provide qualifying employers with a tax incentive to offer additional paid leave when employees need to care for a child or an immediate family member who is sick or disabled. In […]
Tax Treatment of Directors’ Remuneration in Malaysia
Key Compliance Lessons from Datuk Oh Chong Peng v. LHDN Case Background and Key Judgment Datuk Oh Chong Peng v. Ketua Pengarah Hasil Dalam Negeri [2026] 5 MLRA provides important guidance on the tax treatment of directors’ remuneration and tax compliance planning for Malaysian companies. Datuk Oh Chong Peng (“Datuk Oh”), a retired registered accountant, […]
Can Intercompany Asset Transfers Qualify for RPGT Treatment on a “No Gain No Loss” Basis?
An asset transfer within a company group does not automatically qualify for an exemption from Real Property Gains Tax (RPGT). Subject to specific conditions, Paragraph 17(1) of Schedule 2 to Malaysia’s Real Property Gains Tax Act 1976 may allow a relevant disposal to be treated on a “No Gain No Loss” basis. Which Transactions May […]