Finance Act 2017 Malaysia

The finance bill 2016 was enacted as finance act 2017 on 16 january 2017.

Finance act 2017 malaysia. On 16 january 2017 malaysia enacted the finance act 2017 effective as of 17 january 2017 incorporating changes on the scope of withholding tax wht on technical services and royalties and further clarifications on penalty provisions for country by country reporting cbc reporting. Whilst there are minor changes comparing the finance act 2017 with the finance bill 2016 they do not have significant impact. Malaysia tax 17 january 2017 tax espresso finance act 2017 the finance act 2017 has been published in the gazette on 16 january 2017 and shall come into operation on 17 january 2017. Overview of the law relating to withholding tax.

This act may be cited as the. In this article amanda hoi considers the impact of the finance act 2017 on withholding tax in malaysia. Amendment of section 12 6a. Laws of malaysia act 785 finance act 2017.

The reduced tax rate will be between 1 and 4 percentage points for companies with a significant increase in taxable income for the year of assessment 2017 and 2018. Amendment of acts chapter ii amendments to the income tax act 1967 3. Finance 3 laws of malaysia act 812 finance act 2018 arrangement of sections chapter i preliminary section 1. Enacted by the parliament of malaysia as follows.

Malaysia is also planning to introduce a special scheme for the 2017 and 2018 years of assessment that provides for a reduction of the standard income tax rate on the year on year increase in chargeable income of companies previous coverage. Amendment of section 4a 6. Finance 5 an act to amend the income tax act 1967 promotion of investments act 1986 stamp act 1949 real property gains tax act 1976 labuan business activity tax act 1990 service tax act 2018 and sales tax act 2018. 1 sections 4 6 22 23 24 and 26 and paragraph 28 b come into operation on the coming into operation of this act.

Commencement of amendments to the income tax act 1967 4. The enacted finance act 2017 reduces the corporate tax for the year of assessment 2017 and 2018. This alert summarizes the key features of the act. On 16 january 2017 malaysia enacted the finance act 2017 the act effective as of 17 january 2017 incorporating many of the changes proposed in the 2017 budget.

Amendment of section 2 5. Chapter i preliminary short title 1. 8 laws of malaysia act 785 chapter ii amendments to the income tax act 1967 commencement of amendments to the income tax act 1967 3.