Following the issuance of the Income Tax (Exemption) (No. 6) Order 2022 (Amendment) Order 2024, the Malaysian Inland Revenue Board of Malaysia has issued the above on 20 June 2024 to reflect the changes pursuant to the Amendment Order as well as the policy decision made by the Ministry of Finance. The Guideline also provides further clarifications on the qualifying conditions for the exemption on foreign dividend income. Amongst others, economic substance requirement is relaxed to allow outsourcing of specified economic activities with conditions to be met, which are similar to that provided under the exemption for gains or profits from the disposal of foreign sourced capital assets.
In this respect, we have updated the monthly tax development alert for June 2024 previously issued on 13 June 2024, with updates indicated in red.
The updated alert can be accessed via the link above.
