In line with the Budget for 2024, Malaysia is poised for significant changes in its taxation landscape, particularly in the realm of Capital Gains Tax (CGT). The proposed amendments are expected to impact various sectors and types of taxpayers.

Here’s a summary of the key takeaways:

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7. Basis period
Reporting must be done for each disposal transaction.

8. Allowable expenses
Expenses related to the acquisition or disposal of capital assets such as stamp duty, legal fees, broker fees and commission fees. It is important to keep track of these expenses related to the acquisition or disposal of capital assets.

9. Losses
Taxpayers are allowed deductions from the same sources. Any unabsorbed capital losses can be carried forward for a limited period of 10 years.

10. Tax reporting
Submission of the prescribed form through e-filing within 60 days from the date of disposal.

11. Tax payment
Any payment should be made within 60 days from the date of disposal, emphasizing the need for timely compliance.

12. Profits Derived from Foreign Sources
The following conditions apply:
• Exemptions are given on remittances that meet the economic substance requirements;

• Gains from the disposal of shares by a controlled company incorporated outside Malaysia.

13. Deemed to be acquired from Malaysia
Shares in a company will be considered acquired from Malaysia if it owns:
• Real estate located in Malaysia; or
• Shares in another controlled company; or
• both

where the market value of the real estate or shares or both is more than 75% of the value of its tangible assets.

In conclusion, these proposed changes to Malaysia’s Capital Gains Tax system are expected to have a far-reaching impact on businesses, investors, and various taxpayers.

Staying informed, seeking professional advice, and ensuring compliance will be key to navigating this evolving tax landscape effectively.