2024 TAX VISION

A Closer Look At Malaysia's Budget Highlights

 Overview
1.Personal Tax
2.Corporate Tax
3.Tax Incentives
4.Stamp Duty
5.Sales and Service Tax (SST)
6.Customs
7.Capital Gain Tax
8.Luxury Goods Tax
9.Other Tax-Related Matters
Personal Tax
Tax Relief for Medical Expenses
• The scope of medical expenses for self, spouse
and child now includes dental examination
and treatment expenses carried out by any
dental practitioner approved by the Malaysian
Dental Council, up to RM1,000.
(Effective from YA2024)

Tax Relief for Medical Expenses

Incurred for Parents
• The tax relief for medical treatment, special
needs and carer expenses for parents has
been expanded to include a full medical
check-up, limited to RM1,000.

(Effective from YA2024)

Personal Tax
Tax Relief for Lifestyle
• T h e s c o p e o f l i f e s t y l e r e l i e f n o w e n c o m p a s s f e e s f o r s e l f-
skills enhancement courses, while sports equipment
purchase and gym membership fees will be excluded
from the scope of lifestyle relief.

• A special tax relief of up to RM1000 is now introduced for

“Sports Equipment and Activities”. This covers the
purchase of sports equipment, rental or entrance fees for
sports facilities, registration fees for sports competitions,
and gym membership fees. Additionally, the scope of
this relief has been expanded to include sports training
fees charged by sports associations, clubs, or companies
registered with the Sports Commissioner or the
Companies Commission of Malaysia, engaging in sports
activities listed under the Sports Development Act 1997.

(Effective from YA2024)

Personal Tax
Tax Relief for Upskilling Courses
• The tax relief, up to RM2,000, is extended for
an additional 3 years, continuing until 2026.

(Effective from YA2024)

Tax Relief for Electric Vehicles

• The individual income tax relief for expenses
related to the installation and purchase (including
hire-purchase), or subscription fees for EV
charging facilities will be extended for a duration
of 4 years, capped at RM2,500.

(Effective from YA2024 to YA2027)

Tax Exemption for Childcare Allowance

• The tax exemption for childcare allowance
received by the employee or paid directly by
the employer to the childcare center has been
increased from RM2,400 to RM3,000.

(Effective from YA2024)

 Personal Tax
Tax Incentive for Women Career
Comeback Programme
• Women returning to work after a career break of
at least 2 years before the date of application
received by the Talent Corporation Malaysia
Berhad.
• Employment income received from YA2025 until
YA2028 is exempted from tax.

• For applications received by Talent Corporation

Malaysia Berhad from 1 January 2024 until 31
December 2027.
 Corporate Tax
Ø Capital allowance for information technology and
communication equipment and computer software is
reduced from 4 years to 3 years. Effective from YA2024.
Ø Extension of Tax Incentive for companies that rent non-
commercial electric vehicles (EV) are given tax deduction
up to RM300,000 until the year assessment 2027
Corporate Tax
Tax Deductions for Environmental, Social & Corporate
Governance (ESG) Expenditures

To encourage the involvement of numerous

companies in adhering to ESG standards, a tax
deduction of up to RM 50,000 per assessment year
is granted on ESG expenditures. This initiative
commences from the year of assessment 2024 to
year assessment 2027.

ESG-related expenditures include:

Ø Enhancing Sustainability Reporting Framework.

Ø Climate Risk Management and Scenario Analysis.
Ø Tax Corporate Governance Framework (TCGF)
under the Malaysian Inland Revenue Board
(LHDNM).
Ø Transfer Pricing Documentation.
Ø Implementation of E-Invoices.
Ø Reporting related to ESG compliance.
 INCENTIVES
Review of Equity Crowdfunding Tax Incentives

Current Proposal: Effective Date:

Position:
Individual investors who invest
in equity crowdfunding (ECF)
are eligible for tax exemption
on aggregate income equivalent
to 50% of the amount invested
it is proposed the tax For investments made
incentive be expanded to from 1 January 2024
investment made by to 31 December 2026.
individual investor through
Limited Liability Partnership
nominee company and be
extended for a period of 3
years.
 INCENTIVES
Extension of Tax Incentives for Angel Investors

Current Proposal: Effective Date:

Position:
An angel investor investing in a It is proposed that For investments made
tech start-up company in the this tax incentive be from 1 January 2024 to
form of ordinary shares is extended for a period 31 December 2026.
eligible for tax exemption at of 3 years.
the aggregate income level.

The amount of aggregate

income exempted is
equivalent to the amount of
investment made in a tech
start-up company.
 INCENTIVES
Review of Tax Incentives for Automation in the
Manufacturing, Service, and Agricultural Sectors

Current Proposal: Effective Date:

Position:
Manufacturing, services and It is proposed that the For applications
agricultural companies that scope of ACA be received by the
incurred capital expenditure expanded to include Ministry of Plantation
for automation equipment commodity sectors Industries and
including the adaptation of under the Ministry of Commodities from
Industry 4.0 elements are Plantation Industries 14 October 2023 to
given 100% Accelerated and Commodities. 31 December 2027.
Capital Allowance (ACA) on the
first RM10 million of the
qualifying capital expenditure
and can be fully absorbed
within 1 year.

Companies are also eligible for

income tax exemption
equivalent to 100% on the
same capital expenditure.
 Stamp Duty Adjustment:
• It is proposed the transfer of property ownership in which
the eligible beneficiary renunciates his/her right to another
eligible beneficiary in accordance with a will/faraid or the
Distribution Act 1958 be subjected to a fixed duty of RM10.
• Effective date: For the instrument of property ownership
transfer executed from 1 January 2024.
Stamp Duty Adjustment:
• It is proposed a 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.
Sales and Service Tax (SST)
Service Tax to be increased

8%

6%
Ø However, this increase will not apply to food and beverages,
and telecommunications.

Ø Additionally, the government plans to broaden the scope of

taxable services to encompass logistics, brokerage,
underwriting, and karaoke services.
Custom
Excise Duty:

Ø The implementation of excise duty on chewing tobacco

products, set at a rate of 5 percent plus an additional duty of
RM27 per kilogram, mirroring the existing imposition on snuff
tobacco.

Ø A revised excise duty on sugar sweetened beverages, elevating

the duty from 40 cents per litre to 50 cents per litre. The
generated revenue will be reallocated to address diabetes-
related healthcare costs, including the support of dialysis
centers.

Effective from 1 January 2024. SUGARY

B E VE R A G E S

C H E W IN G
T O B A CCO , S N U FF
T O B A CCO .
Capital Gain Tax
Capi tal Gai ns Tax to be i mposed on the
di sposal of unl i sted shares for
compani es

Capi tal Gai ns Tax Opti ons:

Before 1 s t March 2024, taxpayers may

choose:

i ) 1 0% on the net gai n of the di sposal of

shares; or.

i i ) 2% on the gross sal es val ue

From March 1 , 2024, a capi tal gai ns tax

of 1 0% wi l l be i mposed on the net gai n
on di sposal of shares.

Exempti ons:

Ø I PO approved by Bursa Mal aysi a and

restructuri ng of shares wi thi n the
same group.
Luxury Goods Tax
Introducing The High Value Goods Tax

Ø Ranging from 5% to 10%, targeting

selected high-value items, including
jewelry and watches
 Other Tax-Related Matters
Ø Extension of Income Tax Exemption for Social Enterprise
for applications received by the Ministry of Finance from 1
January 2024 until 31 December 2025.
Ø The Government plans to establish a special income tax
rate ranging from 0 to 10% for film production companies,
foreign film actors, and film crews shooting
movies in Malaysia.
Ø Tax deduction of up to 10 percent of aggregate income for
individuals or companies making contributions to
institutions, organizations, or funds (subsection 44(6) ITA
1967) involved in educational programs, including
sports education.
 Meet Our Team

Jess Yang Yvonne Tan

Chok Wei Hong
Operation And Business
Tax Partner Tax Partner
Development Associate Director
Contact Us

+603-7660 9380

enquiries@morisonlc.com /
yvonnetan@morisonlc.com
morisonlc.com

A-11-13, Menara Avenue, Jalan PJU 1/39,

Dataran Prima, 47301 Petaling Jaya,
Selangor.
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