Income and indirect tax provisions in Finance Act 2023
Malaysia’s income and indirect tax provisions in the Finance Act 2023 were published in the official gazette on 31 May 2023 and took effect on June 1, 2023. The launch of the Special Voluntary Disclosure Program 2.0, which aims to help taxpayers calculate and voluntarily report their income was postponed to a later date.
The provisions related to corporate income tax measures included in this Act concern income tax rate reduction for MSMEs, tax deduction for sustainable and responsible investment linked Sukuk, as well as income tax exemption for charitable hospitals. Meanwhile, individual income and stamp duty tax measures include capital gains tax, changes to income tax rates for resident individuals, and various others. The Stamp Duty Order 2023 provides stamp duty remission payable more than 0.1% on contract notes relating to sales of shares or stock traded on Bursa Malaysia.
Indirect Tax Service Tax Regulations 2023 amendments include expansion of the scope of taxable services to include tobacco products, vaporizing devices, alcohol, and non-alcoholic beverages, and other products. In addition, the Malaysian government has also outlined the budget for environmental, social, and corporate governance (ESG) and other tax incentives under this gazette.