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Some major highlights from tax perspective are as follows:
· Introduction of global minimum effective tax rate under Pillar 2 of the BEPS Action Plan 1 Tax Challenges Arising from Digitalisation and implementation of the Qualified Domestic Minimum Top-up Tax
· Restructuring of investment incentives
· Introduction of capital gains tax on disposal of unlisted shares by companies with effect from year 2024
· Introduction of luxury goods tax in year 2023
· Incentive for relocation to Malaysia is extended until 2024 and expanded to include Electrical and Electronics sector
· Flat rate of 15% for 5 consecutive years applicable to non-citizen individuals who are resident in Malaysia and hold a key position in Malaysian companies which relocate their overseas operation into Malaysia is extended until 2024 and expanded to include Electrical and Electronics sector
· Tax rate for Micro, Small and Medium Enterprises (“MSMEs”) on first chargeable income of RM150,000 be reduced from 17% to 15% effective from Year of Assessment (“YA”) 2023
· Review of resident individual income tax rates with effect from YA 2023
- Each of the chargeable income bands from RM35,001 to RM100,000 be reduced by 2%
- Each of the chargeable income bands from RM100,001 to RM1,000,000 is increased by 0.5% to 2%
· Reintroduction of Special Voluntary Disclosure Program (“SVDP”) from 1 June 2023 to 31 May 2024
“An incredible amount of strength and energy are needed to ensure the MADANI Development agenda is successful. Leaders can no longer be comfortable continuing the wrong practices. A major shift is a must. A shift towards a norm of fighting corruption that has denied the people a meaningful life, towards good governance that reflects a principle in spending that leads to the empowerment and socioeconomic mobility for all layers of the people”, quoted by Prime Minister and Finance Minister of Malaysia.
Budget 2023 focus on driving economy recovery, strengthening public trust and upholding integrity. Let us embrace 2023 looking forward to a strong and successful year!
Reference/ Citation
Official Portal of Ministry of Finance Malaysia www.mof.gov.my
