Temporary exemption for repatriated overseas income until the end of 2026!
The government was scheduled to start collecting tax on repatriated overseas income in 2022, but now, in a temporary change, the government has decided to postpone the tax on repatriated overseas income. The relevant amounts are exempt from tax until December 31, 2026.
This means that all foreign income of individuals, dividends from corporations and limited liability partnerships will be exempt from tax. The exemption is available to individuals with overseas income, but this does not include those who operate a partnership in Malaysia. More detailed guidelines will be released by the Inland Revenue Department in the near future.
In addition, the government has also decided to exempt overseas income earned by businesses in the tax year 2022 from the Prosperity Tax. The government has discussed with the relevant authorities on the collection of overseas income tax and prosperity tax, and to ensure the smooth implementation of these plans, the government has agreed to grant exemptions until December 31, 2026.
The Ministry of Finance has also announced that the stamp duty on stock transactions will be capped at RM1,000 and this measure will apply from January 1, 2022 to December 31, 2026. All stock transactions made during this period will be subject to a stamp duty of 0.15%, subject to a maximum cap of RM1,000.
The current stamp duty on stock transactions is 0.10% and the stamp duty cap is RM200, but in Budget 2022 the government announced that it will increase the stamp duty to 0.15% and abolish the stamp duty cap.
This measure made many stock investors worry that it will affect the trading volume of the stock market, and finally the Ministry of Finance decided to
set the stamp duty ceiling at RM1,000.
