Welcome to 2024. hashtag#happynewyear

Malaysia is introducing new hashtag#tax rules this year, and it’s important to know what’s changing. In this blog, I will talk about how these changes might affect you and your money.

Let’s get ready for these new tax changes together.

➡1. Sales Tax on Imported Low Value Goods (Effective Date: 1st January 2024)

The Royal Malaysian Customs department had confirmed that the sales tax on LVG which is sold online will be imposed from 1 January 2024 onwards.

The Customs department defines LVG as all goods – excluding cigarettes, tobacco products, intoxicating liquors, electronic cigarettes, and preparation of a kind used for smoking – which are sold at a price not exceeding RM500, and are brought into Malaysia by land, sea or air.

Read hashtag#ktp past blog on LVG https://lnkd.in/gWk4WK29

➡2. Service Tax Increase from 6% to 8% (Effective Date: 1st March 2024)

In response to Budget 2024, the Minister of Finance has announced a significant rise in the service tax rate from 6% to 8%.

For certain service industries, businesses have to be aware of the increase in service tax from 6% to 8% (Group A, C – G). However, the service tax rate for food, beverages, and telecommunications services will remain at 6%.

The scope of taxable services will be expanded to include karaoke centre services, delivery services, logistics services, and non-financial services relating to brokerage and underwriting. This change will be effective from 1 March 2024.

➡3. Capital Gains Tax of 10% (Effective Date: 1st March 2024)

A capital gains tax of 10 percent will be imposed on the disposal of unlisted local company shares on net gains.

Read hashtag#ktp past blog on CGT https://lnkd.in/gh6pGQPY

➡4. Luxury Good Tax (5-10%) (Effective Date: 1st May 2024)

Luxury items such as watches, and jewelry will be subject to a high-value goods tax with rates ranging from five to 10 percent.

➡5. Implementation of E-invoicing (Effective Date: 1st August 2024)

Taxpayers with an annual turnover of over 100 million ringgit will have to implement e-invoicing from August 1, 2024.

Read hashtag#ktp past blog on e-invoicing https://lnkd.in/gK57XUng