TaXavvy Issue 24/2024

In this issue:

Guidelines for Automation Capital Allowance (Manufacturing & Services Sectors)

The Malaysian Investment Development Authority has issued the Guidelines and Procedures for the Application of Automation Capital Allowance for Manufacturing and Services Sectors following the announcement of enhanced tax incentive for automation in manufacturing and services sectors in the retabled Budget 2023.

Guidelines for further tax deduction for carbon projects

The Malaysian Green Technology and Climate Change Corporation (MGTC) has issued Guidelines for the application for further tax deduction for carbon projects. As announced in Budget 2024, a further deduction of MYR300,000 is given to companies for costs incurred on Measurement, Reporting and Verification related to the development of carbon projects.

Guidelines for Green Investment Tax Allowance (GITA) Asset for Own Consumption

Following the 2024 Budget, the green technology tax incentives have been revised to the following categories:

● Green Investment Tax Allowance (GITA) Project for Business Purposes;

● Green Investment Tax Allowance (GITA) Asset for Own Consumption; and

● Green Income Tax Exemption (GITE) Solar Leasing.

The MGTC has now issued a Guidelines on (GITA) Asset for Own Consumption.

Updated e-Invoice guidelines

The Inland Revenue Board (IRB) has issued updated e-Invoice Guidelines and e-Invoice Specific Guidelines, both dated 28 June 2024.

e-Invoice FAQs

The IRB has updated the General Frequently Asked Questions for Implementation of e-Invoice in Malaysia (General FAQ) and issued the following industry specific FAQs:

● Aviation (new)

● Financial services, stockbroking and unit trust (new)

● Healthcare (updated)

● Insurance and takaful (new)

● Tourism (new)

MyInvois Portal

The IRB has made the MyInvois Portal available for the purposes of the implementation of e-Invoicing by Phase 1 taxpayers from 1 August 2024.

Updated Tax Investigation Framework

The IRB has recently issued an updated Tax Investigation Framework, which replaces the earlier Tax Investigation Framework dated 1 January 2023, with effect from 31 May 2024.

Extension of incentives for the Sabah Development Corridor

The following amendment orders have been gazetted to extend the incentives for the Sabah Development Corridor:

● Income Tax (Exemption) (No. 11) Order 2018 (Amendment) Order 2024

● Income Tax (Exemption) (No. 12) Order 2018 (Amendment) Order 2024

● Stamp Duty (Exemption) (No. 8) Order 2018 (Amendment) Order 2024

Extension of income tax exemption for approved development manager in Iskandar Malaysia

The Income Tax (Exemption) (No. 19) 2007 (Amendment) Order 2024 has been gazetted to extend the tax incentive for approved development managers in Iskandar Malaysia.

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