Tax

The SST Ripple Effect: What Malaysia’s 8% Tax on Commercial Rentals Means for You The Malaysian real estate market is once again at a pivotal crossroads. The government’s proposed expansion of the Sales and Services Tax (SST) to include an 8% levy on commercial rental and leasing services is stirring significant attention across the property sector. For landlords, tenants, and investors—especially...

Residential Properties Under HDA Exempt from SST: Ministry Clarifies to Ease Developer Concerns As Malaysia gears up for the implementation of the expanded Sales and Services Tax (SST) framework on July 1, the Ministry of Housing and Local Government has issued a key clarification:Residential properties sold under the Housing Development Act (HDA) remain fully exempt from the SST, including serviced...

HDA Residential Properties Exempted from SST: Government Eases Developer and Buyer Concerns In response to growing industry anxiety over rising construction costs, the Malaysian government has officially exempted residential properties sold under the Housing Development Act (HDA) from the revised Sales and Services Tax (SST) framework. The exemption includes serviced apartments built on commercial land,...

How Tax Reforms Can Reshape Malaysia’s Property Market and Reduce Inequality Malaysia’s journey towards high-income status hinges on tax reforms, revenue generation, and economic mobility, as highlighted in the World Bank’s latest report. According to the report, household incomes must double, and public expenditure needs to increase to match developed economies. For the property market, these tax...

Selangor to Raise Assessment Tax Rates Starting January The Selangor government has announced a 25% increase in assessment tax rates for local authorities, effective January 1, 2025. The decision, guided by the Local Government Act 1976 (Act 171), aims to align tax rates with updated valuation lists, which are legally required every five years. Why the Increase? The adjustment comes after...

The Securities Commission Malaysia (SC) has released detailed conditions for Single Family Office Vehicles (SFOVs) to qualify for the 0% concessionary tax rate, a key incentive announced to boost investment in the Forest City special financial zone. Among the essential requirements is that SFOVs must manage at least RM30 million in assets under management (AUM), with a minimum local investment of 10% of...

The Malaysian government has introduced a series of tax incentives to accelerate the development of Forest City as a key financial hub. Located in Johor, this 1,400-hectare private development has struggled to meet its ambitious growth targets since its inception, but these new incentives aim to position Forest City as a global financial and economic hub. Special Corporate Tax Rates and Personal Income...

In a significant move to strengthen tax compliance across Klang Valley, the Inland Revenue Board (LHDN) and the Royal Malaysian Customs Department have launched Ops Metro 2024, a large-scale operation aimed at ensuring businesses adhere to tax regulations. The operation, announced by LHDN chief executive officer Datuk Dr. Abu Tariq Jamaluddin, will see over 1,000 officers from both agencies inspecting...

The Inland Revenue Board (LHDN) of Malaysia has intensified efforts to curb tax revenue leakage by identifying individuals and companies engaged in high-frequency cryptocurrency trading. This move aims to enhance national tax administration and ensure compliance with tax regulations. LHDN chief executive officer Datuk Dr. Abu Tariq Jamaluddin highlighted the need for greater scrutiny of cryptocurrency...

A recent article highlighted Khazanah Research Institute's (KRI) call for the Malaysian government to consider a vacancy tax on unoccupied and unsold residential and commercial units. While similar taxes are practiced in cities like Vancouver and Melbourne, the proposal's suitability for Malaysia's property market is questioned by the National House Buyers Association (HBA). Unlike countries where vacancy...