TaXavvy Issue 8/2025

In this issue:

Tax Audit Framework for Income Tax and Employer

The Inland Revenue Board (IRB) has introduced the Tax Audit Framework for Income Tax and Employer (“2025 Framework”) which is effective from 15 March 2025. The 2025 Framework replaces and consolidates the following tax audit framework into a single document:

1. Tax Audit Framework dated 1 May 2022
2. Tax Audit Framework on Finance and Insurance dated 1 May 2022
3. Tax Audit Framework for Petroleum Tax dated 1 May 2022
4. Tax Audit Framework for Employer dated 1 October 2021
5. Tax Audit Framework on Withholding Tax dated 1 August 2015

MIDA guidelines – revised PIPC Manufacturing Guidelines

The Malaysian Investment Development Authority (MIDA) has issued the revised Guidelines and Procedures for the Application of the Pengerang Integrated Petroleum Complex (PIPC) Special Incentive Package for the Manufacturing Sector.

Updated guidelines for reinvestment incentives

MIDA has updated the Guideline and Procedures for the Application of Incentive for Reinvestment under the New Industrial Master Plan 2030 to include details on the incentive mechanism.

Practice Note 1/2025 – Tax treatment on the acceptance of donations or contributions

The IRB has issued Practice Note 1/2025 - Tax treatment on the acceptance of donations or contributions.

e-Invoice Guideline (version 4.3)

The IRB has released the latest version of the e-Invoice Guideline (version 4.3) dated 18 March 2025, which supersedes the e-Invoice Guideline (version 4.2) issued on 21 February 2025.

e-Ansuran - instalment application for tax payment

The IRB has issued a media release on 18 March 2025 on the availability of an online application for instalment payment of tax balance or tax in arrears through the e-Ansuran system.

Labuan filing – extension of time

The IRB has informed the Association of Labuan Trust Companies on the filing of Labuan income tax returns on the filing deadline for YA 2025 (preceding year basis).