The Income Tax (Exemption) (No. 3) Order 2024 (“Exemption Order”) was gazetted on 4 March 2024.

Key Summaries of the Exemption Order
1. This exemption applies to gains from selling foreign assets by certain entities include companies, partnerships, trusts, and co-operatives that meet certain conditions in Malaysia.

2. The exemption is valid from January 1, 2024, to December 31, 2026.

3. The exemption period is timed to end together with the exemptions granted for foreign-sourced income received by resident individuals and foreign-sourced dividend income received by resident companies, LLPs, trust bodies and co-operative societies until 31 December 2026 under the Income Tax (Exemption) (No. 5) 2022 and Income Tax (Exemption) (No. 6) 2022, respectively.

4. Conditions for exemption involve having enough employees and spending enough on operations in Malaysia.

5. These conditions are guided by future guidelines from the Director General of Inland Revenue.

6. Deductions related to these exempt gains can’t be used to lower taxable income.

7. Gains from selling intellectual property rights (IPR) are not exempt.

8. This order doesn’t apply to banking, insurance, or transport (sea/air) companies.

Read the full content in our hashtag#ktp blog
https://lnkd.in/gUwEmgvf