BDO Tax Buzz | Issue (1) 2025

In this issue of Tax Buzz, we will highlight the key changes and updates on:

INCOME TAX

Income Tax (Unit Trust in relation to Income Received in Malaysia from Outside Malaysia) (Exemption) Order 2024 [P.U. (A) 250/2024]
Income Tax (Issuance of Electronic Invoice) Rules 2024 [P.U. (A) 266/2024]
Income Tax (Capital Allowance) (Development Cost for Customised Computer Software) Rules 2024 [P.U. (A) 327/2024] & Income Tax (Accelerated Capital Allowance) (Information and Communication Technology Equipment) Rules [P.U. (A) 328/2024]
Operational Guideline No. 4/2024: Pilot Implementation of Tax Compliance Certificate (“TCC”) for Government Procurement Applications

TRANFER PRICING

FAQ on Matters Pertaining to Transfer Pricing 2.0: Recently published on 18 October 2024, addressing topics such as re-characterisation of transactions, arm’s length range, and penalty for failure to furnish contemporaneous transfer pricing documentation.

CAPITAL GAINS TAX

Income Tax (Unit Trust) (Exemption) Order 2024 [P.U. (A) 249/2024]: Exemption from capital gains tax for qualifying unit trusts on the disposal of unlisted shares from 1 January 2024 to 31 December 2028.
Income Tax (Restructuring of Companies Scheme) (Exemption) Order 2024 [P.U. (A) 289/2024]: Exemption from capital gains tax on the disposal of shares under certain conditions from 1 March 2024 to 31 December 2028.
Income Tax (Initial Public Offering) (Exemption) Order 2024 [P.U. (A) 290/2024]: Exemption from capital gains tax for disposals related to initial public offerings from 1 March 2024 to 31 December 2028.

STAMP DUTY

Stamp Duty (Exemption) Order 2024 [P.U. (A) 266/2024]: Exemption from stamp duty on financing agreements under the Independent Smallholder Oil Palm Replanting incentive programme executed between 7 March 2024 and 31 December 2027.

SALES TAX

Sales Tax (Amendment) Act 2024: Pulau 1 of Forest City in Johor is now designated as a sales tax area. Sales tax applies to taxable goods manufactured, imported, or transported to or from Pulau 1, effective 1 December 2024.
Public Ruling No. 2/2024 (Amendment) (No. 2) 2024: Manufacturing Aids and Cleanroom Equipment issued on 20 December 2024.

SERVICE TAX

Service Tax (Amendment) Act 2024: Pulau 1 of Forest City in Johor is now designated as a service tax area, effective 1 December 2024.
Guide For Credit Card and Charge Card Services: Updated guide explaining the service tax treament on credit card and charge card services, published by the RMCD on 2 September 2024.