– New CGT in Malaysia applies to gains from disposal of capital assets as income starting January 1, 2024
– Foreign capital assets also subject to 24% tax rate for companies
– Exemptions for gains on capital assets situated in Malaysia, but taxes disposal of unlisted shares and specific types of shares
– Tax rate is 10% for assets acquired on or after January 1, 2024, or 2% of gross disposal price for assets acquired before that date
– Lack of clear guidelines making business decisions more complicated
– Discussions with MoF for exemptions for unit trusts and favorable treatment for individuals and listed shares
– Seeking clarity on whether CGT applies to gains from disposal of foreign assets for companies with overseas assets
– 10% flat rate for disposal of real property company (RPC) shares after March 1, 2024
– CGT seen as response to Malaysia’s placement on EU Code of Conduct’s grey list and fiscal constraints
– Implementation of CGT adds complexity to taxation and business decisions in Malaysia