Finance Act 2017 Malaysia

Finance 5 an act to amend the income tax act 1967 promotion of investments act 1986 stamp act 1949 real property gains tax act 1976 labuan business activity tax act 1990 service tax act 2018 and sales tax act 2018.

Finance act 2017 malaysia. Amendment of section 4a 6. In this article amanda hoi considers the impact of the finance act 2017 on withholding tax in malaysia. Expansion of withholding tax on service fees and royalties. Chapter i preliminary short title 1.

The reduced tax rate will be between 1 and 4 percentage points for companies with a significant increase in taxable income for the year of assessment 2017 and 2018. 8 laws of malaysia act 785 chapter ii amendments to the income tax act 1967 commencement of amendments to the income tax act 1967 3. The finance bill 2016 was enacted as finance act 2017 on 16 january 2017. This was not provided for in the finance act but is expected to be introduced through an exemption order.

Malaysia tax 17 january 2017 tax espresso finance act 2017 the finance act 2017 has been published in the gazette on 16 january 2017 and shall come into operation on 17 january 2017. Amendment of acts chapter ii amendments to the income tax act 1967 3. Commencement of amendments to the income tax act 1967 4. Finance 3 laws of malaysia act 812 finance act 2018 arrangement of sections chapter i preliminary section 1.

Whilst there are minor changes comparing the finance act 2017 with the finance bill 2016 they do not have significant impact. On 16 january 2017 malaysia enacted the finance act 2017 effective as of 17 january 2017 incorporating changes on the scope of withholding tax wht on technical services and royalties and further clarifications on penalty provisions for country by country reporting cbc reporting. 1 sections 4 6 22 23 24 and 26 and paragraph 28 b come into operation on the coming into operation of this act. Overview of the law relating to withholding tax.

Malaysia is also planning to introduce a special scheme for the 2017 and 2018 years of assessment that provides for a reduction of the standard income tax rate on the year on year increase in chargeable income of companies previous coverage. Enacted by the parliament of malaysia as follows. The enacted finance act 2017 reduces the corporate tax for the year of assessment 2017 and 2018. On 16 january 2017 malaysia enacted the finance act 2017 the act effective as of 17 january 2017 incorporating many of the changes proposed in the 2017 budget.

Amendment of section 12 6a. This alert summarizes the key features of the act. Laws of malaysia act 785 finance act 2017.