Proposed Amendments to the Income Tax Act 1967 and Labuan Business Activity Tax Act 1990–March 2024

Proposed Amendments to the Income Tax Act 1967 and Labuan Business Activity Tax Act 1990–March 2024

The Income Tax (Amendment) Bill 2024 and Labuan Business Activity Tax (Amendment) Bill 2024 were introduced in Parliament by Finance Minister II on 25 March 2024. These bills aim to amend the Income Tax Act 1967 and Labuan Business Activity Tax Act 1990, respectively.

Proposed Amendments to the Income Tax Act 1967:

Capital Gains Tax (CGT) Definition and Rates

  • Redefining "capital asset".
  • Clarification on CGT rates for disposals deemed to be derived from Malaysia under section 15C.
  • Removal of CGT exemption on gains from disposal of shares not listed on the stock exchange.

e-Invoicing

  • Proposal to remove the requirement for printed receipts for sums received in respect of goods sold or services performed.
  • Extension of the requirement to issue self-billed e-invoices to e-commerce platform providers.

Revision of Estimate of Tax Payable

  • Correction to include the 11th-month revision option for estimating tax payable for companies, LLPs, trust bodies, or co-operative societies.

Proposed Amendment to the Labuan Business Activity Tax Act 1990:

e-Invoicing:

  • Similar to the Income Tax Act 1967, extending the requirement to issue self-billed e-invoices to e-commerce platform providers who are Labuan entities carrying out Labuan business activities.

These proposed amendments aim to streamline tax procedures and enhance compliance with evolving business practices.

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