Malaysia REIT Unit Holder Taxation – Income Rules
Introduction Malaysia REIT unit holder taxation governs how investors are taxed on income distributions from Real Estate Investment Trusts (REITs) or Property Trust Funds (PTFs). Under the Income Tax Act 1967 (ITA), unit holders are assessed based on when they receive the distribution, the source of income, and whether it has already been taxed at […]
Malaysia Foreign Source Income Tax – Full Exemption Guide
Introduction Malaysia Foreign Source Income Tax governs how income earned abroad is taxed when remitted into Malaysia. Effective from 1 January 2022, all types of foreign income received in Malaysia by a resident person are generally subject to tax under the Income Tax Act 1967 (ITA) — unless specific exemptions apply. This guide explains which […]
Malaysia REIT Taxation – Rental & Income Rules
Introduction Malaysia REIT taxation determines how rental and investment income from Real Estate Investment Trusts (REITs) or Property Trust Funds (PTFs) are assessed under the Income Tax Act 1967 (ITA). Approved REITs/PTFs — whether listed or unlisted — enjoy specific tax treatments when authorized by the Securities Commission Malaysia (SC). Basis of Assessment The basis […]
Malaysia REIT Taxation – REIT & PTF Explained
Introduction Malaysia REIT taxation plays a key role in the real estate investment landscape. A Real Estate Investment Trust (REIT) or Property Trust Fund (PTF) allows investors to pool funds and invest in income-generating properties, while enjoying specific tax incentives under the Malaysian Income Tax Act. What is a REIT/PTF? A REIT (Real Estate Investment […]
Malaysia Income Tax Leasing vs Non-Leasing: Tax Rules
Introduction Malaysia income tax leasing vs non-leasing activities is a critical issue for businesses under the Income Tax Act (ITA). Section 36(1) and Section 33(1) require that leasing transactions be treated separately from non-leasing business sources. This article explains how leasing income is computed, the apportionment of expenses and capital allowances (CA), and the landmark […]
Malaysia Income Tax Lease vs Hire Purchase: Tax Guide
Introduction Malaysia income tax lease vs hire purchase treatment is a crucial topic for businesses acquiring assets through financing. Under Section 36(1) of the Income Tax Act (ITA), the Director General of Inland Revenue (DGIR) issues regulations that provide specific tax treatments for leasing and hire purchase transactions. This guide explains how lease and hire […]
Malaysia Income Tax Lease vs Hire Purchase: Key Differences
Introduction Under Section 36(1) of the Malaysia Income Tax Act (ITA), the Director General of Inland Revenue (DGIR) is empowered to introduce special tax treatments for certain types of business income. These include hire purchase transactions, debt instalment transactions, and lease transactions. To standardize this, the DGIR issued the Income Tax Leasing Regulations (ITLR) 1986, […]
Labuan Tax Payment: Rules, Penalties & Director’s Liability
Introduction Labuan tax payment obligations are crucial for companies operating in Malaysia’s Labuan International Business and Financial Centre (IBFC). Under the Labuan Business Activity Tax Act (LBATA) and the Income Tax Act 1967 (ITA), entities must comply with payment deadlines, recovery rules, and reporting obligations. This guide explains how Labuan tax is paid, the consequences […]
Labuan Tax Treatment: Income, Payments & Incentives
Introduction Labuan tax treatment covers more than just business profits. Companies and individuals dealing with Labuan entities need to understand how dividend income, capital gains, payments, incentives, and exemptions are treated under the Labuan Business Activity Tax Act (LBATA) and the Income Tax Act 1967 (ITA). This guide explains the key rules to ensure compliance […]
Labuan Tax Treatment: Trading vs Non-Trading Activities
Introduction Labuan tax treatment plays a critical role for companies operating in Malaysia’s Labuan International Business and Financial Centre (IBFC). Understanding the difference between trading and non-trading activities, tax rates, and compliance requirements under the Labuan Business Activity Tax Act (LBATA) and Income Tax Act 1967 (ITA) is essential for businesses to remain compliant and […]
