Key Highlights of Malaysia's Finance Bill 2025

For Individuals and Businesses

Navigating the Finance Bill 2025 - Key Changes That Matter

The Finance Bill 2025 and Measures for the Collection, Administration and Enforcement of Tax Bill 2025 (collectively referred to as “the Bills”), tabled in the Dewan Rakyat on 18 November 2025, marks a significant step in refining Malaysia’s tax landscape, addressing key areas that impact both businesses and individuals.

Ranging from updates to stamp duty provisions to the introduction of new capital gains tax rules, these amendments are intended to strengthen transparency, fairness and compliance within Malaysia’s tax system.

For businesses, the Bills introduce provisions that could affect cash flow, operational planning, and strategic investments. Individuals, on the other hand, will need to navigate updates like tax relief changes to ensure compliance with the new requirements.

This booklet provides a detailed explanation of the Bills’ amendments, giving you a clear view of how these changes may affect your tax planning and obligations beginning in 2026. Whether you are a business owner, property investor or an individual managing your personal taxes, this guide will help you stay informed and prepared for what lies ahead.

Those who understand policy change early are the ones who stay ahead of it.

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Key Highlights of Malaysia's Finance Bill 2025

Income Tax on Profit Distributions by an LLP

Profit distributions to the partners in excess of RM100,000 annually will be taxed at 2% from YA 2026.

Monthly Tax Instalments

Payments to start in the first month of basis period from YA 2028 with a transition year in YA 2027.

Real Property Gains Tax (RPGT)

Loss carry-forward limited to 10 years from 1 Jan 2026 onwards.

Capital Gains Tax (CGT)

Expanded definition of disposal and clarification on the date of disposal, effective 1 Jan 2026.

Stamp Duty

Self-assessment penalties revised; late stamping attracts higher fines from 1 Jan 2026.

This newsletter continues our Budget 2026 coverage, focusing on additional tax proposals introduced under:

Finance Bill 2025
Measures for the Collection, Administration and Enforcement of Tax Bill 2025

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What’s Inside:

Highlights for Businesses
- Major Rule Changes
- Corporate Tax
- Capital Gains Tax (CGT)
- Real Property Gains Tax (RPGT)
- Stamp Duty
- Labuan Business Activity Tax Act
Highlights for Individuals
Proposed Measures for Businesses and Individuals