Malaysia: Global Minimum Tax (GMT)

In October 2021, 137 countries and jurisdictions under the OECD/G20 Inclusive Framework on BEPS have agreed to a global minimum tax (GMT) rate of 15%. On 20 December 2021, the OECD published detailed rules to assist in the global tax system reform, the Pillar Two model rules. The implementation of GMT is a landmark reform to the international tax system, to ensure MNEs are subject to a minimum tax rate of 15% from 2023.

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In order to align with international taxation standards, GMT is implemented in Malaysia for the Financial Year (FY) beginning on or after 1 January 2025 and subsequent FYs. GMT is applicable to Multinational Enterprise (MNE) groups that have an annual consolidated revenue of € 750 million or more in at least two out of the four years before the tested year.

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The GMT’s filing obligations in Malaysia is as follows:

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The IRBM has issued the following guidelines on their official website: 

• Guidelines on the Implementation of GMT in Malaysia (published on 2 December 2024)
• Frequently Asked Questions (FAQs) on GMT in Malaysia (version 4.1 updated on 8 January 2025)

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Reference/ Citation
Official Portal of Inland Revenue Board of Malaysia (IRBM)

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