Malaysia Budget 2024 – Tax Highlights

Malaysia’s 2024 Budget introduced several tax reforms which will impact local businesses and disposable income of general Malaysians.

On 13 October 2023, Malaysia’s Prime Minister and Finance Minister, YAB Dato’ Seri Anwar bin Ibrahim, presented the Budget 2024 focusing on three pivotal areas:

• optimising governance for enhanced service agility
• economic restructuring to foster growth, and
• elevating the standards of living for Malaysian citizens.

The expansionary budget is designed to address contemporary challenges and enhance the quality of life for Malaysians.

To fortify the government’s fiscal responsibilities, reduce the deficit to 4.3%, and augment revenue to RM307.6 billion, the budget incorporates significant structural changes to the tax system, including:

• E-invoicing for taxpayers with an annual turnover above RM100 million (starting 1 August 2024)
• Capital Gains Tax (CGT) arising from the disposal of unlisted shares in local companies (starting 1 March 2024)
• Global Minimum Tax (GMT) applicable to large multinational enterprises (MNEs) with global revenue of at least EUR 750 million (starting in the year 2025)
• Service Tax will be raised to 8% for all services except food, beverage, and telecommunication services
• Luxury Goods Tax ranging from 5% to 10%

Download our Budget 2024 Report today to find out more. If you have any questions, please reach out to your respective BoardRoom client managers or email us at [email protected].