Malaysia commits to international tax standards

Malaysia commits to international tax standards

Malaysia, in principal, has committed to implement and adhere to Base Erosion and Profit Shifting (BEPS) Action Plan. It has officially joined the OECD Inclusive Framework on BEPS as Associate Members. The framework emphasises on four minimum standards:

• Action 5 – Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance

• Action 6 – Preventing the Granting of Treaty Benefits in Inappropriate Circumstances

• Action 13 – Guidance on Transfer Pricing Documentation and Country-by-Country Reporting

• Action 14 – Making Dispute Resolution Mechanisms More Effective

In addition, the Forum on Harmful Tax Practices (FHTP) has identified certain Malaysian incentives for evaluation on the basis that it provide preferential regimes for mobile geographical services activities related to intellectual property and non-intellectual property. The incentives are as follows:

Intellectual property incentives

Non-intellectual property incentives

Principal Hub
Pioneer Status (High Technology)
Biotechnology Industry (BioNexus)
MSC Malaysia

Biotechnology Industry (BioNexus)
MSC Malaysia
Principal Hub
Pioneer Status (Contract R&D)
Treasury Management Centre
Economic Development Regions [Iskandar Malaysia (IM), East Coast Economic Region (ECER), Sabah Development Corridor (SDC)]
Approved Services Project
Green Technology Services
Labuan Leasing Services
Foreign Fund Management
Inward re-insurance and offshore insurance
Malaysian International Trading Company

The Ministry of Finance (MoF) has released timelines where the above mentioned tax incentives shall be amended to meet the FHTP criteria. The Ministry of Finance is working with the Inland Revenue Board and related ministries/agencies to review the incentives in order to meet the criteria set under the FHTP.

Kindly visit the MoF website for further information.

Source: MoF website, 12 June 2018

RMCD releases notice on display prices

RMCD releases notice on display prices


The Royal Malaysian Customs Department (RMCD) has released a notice to clarify the display of price tags with effect from 1 June 2018.

The notice provides, among others, the following:

• GST-registered vendors are required to display a notice in an obvious area in their premises that the price tags that used to include the 6% GST has changed to 0% GST.

• GST-registered vendors are given until 1 July 2018 to update their price tags.

• Those who have obtained approval from the Director General to charge GST exclusively need not change their price tags. However, they are not allowed to collect GST since it has been zero-rated.

Kindly visit the RMCD website for further information.


Source: RMCD website, 30 May 2018