Malaysia’s Budget 2025 Targets Growing Tax Revenue and Investors

As the largest budget ever tabled for Malaysia, Budget 2025 seeks to increase tax revenue and broaden the tax base of both direct and indirect taxes amidst a review of the existing tax incentive framework. Notably, despite the recent implementation of a capital gains tax with effect from January 1, 2024, more new taxes are being proposed for subsequent years of assessment (“YAs”), such as the carbon tax on the iron, steel and energy industries, and a dividend tax. Some of the salient Budget 2025 proposals are discussed below. Unless otherwise stated, the proposed amendments discussed below, when passed by ...