Pillar 2 - Global Minimum Tax

The year 2025 marks a new dawn in the Malaysian tax landscape with the implementation of Global Minimum Tax ("GMT") regime for large multinationals, aligned with international tax development towards a fairer corporate taxation system. Multinationals with annual revenues of at least EUR 750 million, in at least 2 of the 4 consecutive financial years immediately preceding the tested financial year, shall be subject to either the Multinational Top-up Tax (MTT) or Domestic Top-up Tax (DTT), as stipulated in Part XI of the Malaysian Income Tax Act 1967. The GMT legislation will take effect from 1 January 2025.

Constituent Entities (CE) of a MNE group shall prepare and submit to the Inland Revenue Board of Malaysia a GloBE Information Return and a Top-up Tax Return for each Financial Year electronically not later than 15 months from the last day of the Reporting Financial Year.