Special Voluntary Disclosure Programme 2.0 (SVDP 2.0)
August 30, 2023E-Invoice
November 9, 2023Our Blog
Malaysia Budget 2024 was announced by the Prime Minister and Finance Minister, YAB Dato' Seri Anwar bin Ibrahim on 13 October 2023. Below are some key highlights of the Budget 2024:-
| INDIVIDUAL INCOME TAX | PROPOSED CHANGES | |
|---|---|---|
| 1 | Tax relief for medical expenses for taxpayer, spouse and children of RM10,000 | To include dental examination and treatment up to RM1,000 by dental practitioners registered with the Malaysian Dental Counsil. Effective from: 1 January 2024 |
| 2 | Tax relief for parents medical expenses of RM8,000 | To include parents' full medical examination up to RM1,000 Effective from: 1 January 2024 |
| 3 | RM2,000 tax relief for courses taken for upskilling or self-enhancement recognised by the Department of Skills Development, Ministry of Human Resources. | Extended for 3 years until YA 2026 |
| 4 | Tax relief for lifestyle of RM2,500 | - To include self skills enhancement courses - To exclude purchasing sports equipment and gymnasium memberships subscription Effective from: 1 January 2024 |
| 5 | Tax relief for Sports Equipment and Activities limited to RM1,000. | The tax relief covers the following:- - Purchase of sports equipment - Rental or entrance fees to sports facilities - Registration fees for participating in sports competitions - Gymnasium membership fees - Sports training fees imposed by associations, sports clubs or companies registered with the Sports Commissioner or Companies Commission of Malaysia and carrying out sports activities under the Sports Development Act 1997 Effective from: 1 January 2024 |
| 6 | Tax relief for Electric Vehicle (EV) of RM2,500 | To extend 4 years, from YA 2024 until YA 2027. |
| 7 | The income tax exemption on employment income for women returning to work after a career break | To extend to YA 2028 |
| 8 | Childcare allowance received by employee or paid directly by employer for children up to 12 years old | To increase from RM2,400 to RM3,000 Effective from: 1 January 2024 |
| 9 | Application period for tax incentive The Returning Expert Programme | To extend to 31 December 2027 |
| CORPORATE INCOME TAX | PROPOSED CHANGES | |
|---|---|---|
| 1 | Capital allowance for ICT equipment and software | Initial allowance increased from 20% to 40% Effective from: YA 2024 |
| 2 | Rental of non-commercial electric vehicle (EV) is eligible for tax deduction up to RM300,000 | 2 years extention until YA 2027. |
| 3 | Expenses incurred to comply with ESG standards. (i.e.: Transfer Pricing Documentation, E-Invoicing Implementation and any reporting requirement related to ESG) | Tax deduction is given up to RM50,000 per Year of Assessment Effective from: YA 2024 to YA 2027 |
| 4 | The Green Investment Tax Allowance and Green Income Tax Exemption | Extended for 2 years for applicaton received by MIDA or MGTC from 1 January 2024 until 31 December 2026 |
| 5 | Allow revision of Estimate of Tax Payable in 11 month (CP204A) | Effective from: YA 2024 |
| INDIRECT TAX | PROPOSED CHANGES | |
|---|---|---|
| 1 | Service Tax | - Service tax rate to increase from 6% to 8% (not applicable to food and beverage and telecommunications) - The scope of taxable services is expanded to include logistics, brokerage, underwriting and karaoke services. |
| 2 | Import Duty and Sales Tax Exemption on Manufacturing Aids | Propose to give import duty and sales tax exemption to eligible manufacturers on the importation and locally purchased of manufacturing aids. Effective from: 1 January 2024 |
| 3 | The excise duty rate on ready-to-drink sugar sweetened beverages | To increase from RM0.40 per litre to RM0.50 per litre Effective from: 1 January 2024 |
| OTHERS | PROPOSED CHANGES | |
|---|---|---|
| 1 | Capital Gain Tax on Disposal of Unlisted Shares | Effective from: 1 March 2024 |
Shares Acquisition Date | Capital Gain Tax Rate |
|
Before 1 March 2024 | The taxpayers may choose: i. 10% on the net gain of the disposal of shares; or ii. 2% on the gross sales value. |
|
From 1 March 2024 | 10% on the net gain of the disposal of shares |
|
| 2 | E-Invoicing | Full implementation by 1 July 2025 |
Annual sales turnover in 2022 (RM) | Target date for implementation |
|
> 100 million | 1 August 2024 |
|
25 million and up to 100 million | 1 January 2025 |
|
< 25 million | 1 July 2025 |
|
| 3 | Stamp duty for property ownership by non-citizen | Flat rate stamp duty of 4% be imposed on the instrument of transfer executed by foreign-owned companies and non-citizen individuals (except Malaysian permanent residents). Effective date: For instrument of property ownership transfer executed from 1 January 2024 |
Click on the following links for more information and documents related to the Belanjawan 2024.