The Inland Revenue Board of Malaysia (HASiL) held a dialogue with the Ministry of Finance, the Institute, and other professional bodies on 21 June 2023 to discuss the Joint Memorandum on Issues Arising from 2023 Budget Speech & Finance Bill 2023 submitted to the Tax Authorities on 7 April 2023.
The issues raised in the Joint Memorandum pertain to the matters listed in the table below.
1. Amendments to the Income Tax Act 1967
| 1.1 | Review of Income Tax Relief for Medical Trearment Expenses - New S.46(1)(ha)(wef YA 2023) |
| 1.2 | Amendment of s.49 in relation to Tax Relief on Voluntary Contribution to Employees Provident Fund (wef YA 2023) |
| 1.3 | Changes to resident individual income tax rate - Amended Para 1 of Part I of Sch 1 (wef YA 2023) |
| 1.4 | Redefinition of 'Micro, Small and Medium Enterprise ("MSME")' - New Para 2B(d) & 2E(d) of Part I of Sch 1 (wef YA 2024) |
| 1.5 | Redefinition of 'Plant' - Amenfed Para 70A Sch 3 (wef YA 2023) |
2. 2023 Budget Speech, Appendices and Touchpoints
| 2.1 | Tax incentives for Electrical and Electronics (E&E) and Aerospace Sectors - Para 61 of the 2023 Budget Speech |
| 2.2 | Tax deduction for individuals/companies that contribute to NGOs that implement sports development programme at grassroots level - Para 173 ofthe 2023 Budget Speech |
| 2.3 | Tax deduction for employers who hire former national athletes - Para 174 of the 2023 Budget Speech |
| 2.4 | Tax deduction on contributons made to FINAS - Para 176 of the 2023 Budget Speech |
| 2.5 | Stamp duty exemption for first-time home ownership - Para 204 of the 2023 Budget Speech |
| 2.6 | Appendix 8 - Stamp DUTY Treatment for Transfer of Property by Way of Love and Affection |
| 2.7 | Appendix 10 - Extension of Stamp Duty Exemption on Restructuring or Rescheduling of Loan/Financing Agreement |
| 2.8 | Appendix 11 - Special Tax Deduction for Expenditure on Malaysian-Made Handicraft |
| 2.9 | Appendix 14 - Tax Incentive for Company Renting Non-Commercial Electric Vehicle |
| 2.10 | Appendix 16 - Tax incentive for Carbon Capture and Storage |
| 2.11 | Appendix 19 - Review of Tax Incentives for BioNexus Status Company |
| 2.12 | Appendix 20 - Review of Accelerated Capital Allowance in Manufacturing, Services and Agriculture Sector |
| 2.13 | Appendix 21 & 22 - Extension of Tax Incentive for Ship Building and Ship Repairing Industry & Aerospace Industry |
| 2.14 | Green Investment Tax Allowance ("GITA") Package anf Green Income Tax Exemption ("GITE") |
| 2.15 | Base Erosion and Profit Shifting ("BEPS") 2.0 Pillar Two |
3. Tax Incentives included in Budget 2023 on 7 October 2022, and not included in Budget 2023 (Retabled) on 24 February 2023
4. Outstanding Gazette Orders - 2014 to 2022 Budgets
5. Tax Measures proposes under Economic Stimulus Packages 2020 to 2021 which have not been gazetted
