{Tax Update} New Tax 2024 Malaysia

{Tax Update} New Tax 2024 Malaysia

Are You Ready Fore New Tax

Welcome to 2024. Happy New Year!

Malaysia is introducing new tax rules this year, and it's important to know what's changing. In this blog, we'll talk about how these changes might affect you and your money.

Whether you know a lot about taxes or are just starting to learn, we'll help you understand what you need to do.

Let's get ready for these new tax changes together.

1. Sales Tax on Imported Low Value Goods (LVG)

Effective Date: 1st January 2024

The Royal Malaysian Customs department had confirmed that the sales tax on LVG which is sold online will be imposed from 1 January 2024 onwards. The Customs department defines LVG as all goods – excluding cigarettes, tobacco products, intoxicating liquors, electronic cigarettes, and preparation of a kind used for smoking – which are sold at a price not exceeding RM500, and are brought into Malaysia by land, sea or air.

Read the past blog on LVG https://www.ktp.com.my/blog/sales-tax-low-value-goods/12jan2023

2. Service Tax Increase from 6% to 8%:

Effective Date: 1st March 2024.

In response to Budget 2024, the Minister of Finance has announced a significant rise in the service tax rate. The tax rate will surge from 6% to 8%, taking effect from March 1, 2024. For certain service industries, businesses have to be aware of the increase in service tax from 6% to 8% (Group A, C – G). However, the service tax rate for food, beverages, and telecommunications services will remain at 6%.

The scope of taxable services will be expanded to include karaoke centre services, delivery services, logistics services, and non-financial services relating to brokerage and underwriting. This change will be effective from 1 March 2024.

3. Capital Gains Tax of 10%

Effective Date: 1st March 2024.

A capital gains tax of 10 percent will be imposed on the disposal of unlisted local company shares on net gains or two percent of gross sales.

Read our past blog on CGT https://www.ktp.com.my/blog/malaysias-budget-2024-capital-gain-tax-part1/23nov23

4. Luxury Good Tax (5-10%)

Effective Date: 1st May 2024.

Luxury items such as watches, and jewelry will be subject to a high-value goods tax with rates ranging from five to 10 percent.

5. Implementation of E-invoicing

Effective Date: 1st August 2024.

Taxpayers with an annual turnover of over 100 million ringgit will have to implement e-invoicing from August 1, 2024.

Read our past blog on e-invoicing https://www.ktp.com.my/blog/e-invoice-faq-for-healthcare-industry/24nov22

Past Important Tax Issues 2023 Malaysia

1. Income Tax (Transfer Pricing) Rules 2023

The key changes introduced under the TP Rules 2023 that took effect from Year of Assessment (YA) 2023 which include TP Documentation (TPD) to be completed prior to the tax return filing deadline, a New Schedule 1 for MNE Groups and a redefined arm’s length range.

Read our past blog on TP Rules 2023 https://www.ktp.com.my/blog/malaysias-2023-transfer-pricing-rules-update/05dec23

2. Special Voluntary Disclosure Programme (SVDP 2.0)

The SVDP 2.0 which grants taxpayers full penalty relief for voluntary disclosures regarding underpayment of direct and indirect tax is applicable for the period from 6 June 2023 to 31 May 2024.

Read our past blog on SVDP 2.0 https://www.ktp.com.my/blog/special-voluntary-disclosure-program-2/18july23

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taxKtp Ktpcapital gain tax, Low value Goods, Special voluntary disclosure program, transfer pricing rule 2023, e-Invoicing, service tax, capital gain