Malaysia Gazettes Order on Income Tax Exemption for Payments to Specified Labuan Companies

The Malaysian Official Gazette March 31 published Order No. P.U. (A) 147/2026, on an income tax exemption for payments made to specified Labuan companies. The order includes measures: 1) exempting Malaysian residents on payments made to Labuan companies undertaking qualifying activities under the Global Incentives for Trading program; 2) clarifying that such residents must still comply with requirements to submit returns or statements of accounts, and to furnish any other information required under Income Tax Act 1967; and 3) specifying that the Labuan companies are those engaged in international commodity trading and that use Malaysia as the international trading base ...