Tax developments (February 2026)

KPMG's monthly tax developments alert aims to provide tax updates for your organization in a timely manner. 

In this edition, we are pleased to highlight some of the notable tax updates and developments since the last update:

•  Malaysian Investment Development Authority’s guidelines on tax incentives for new investment in the manufacturing sector under the New Investment Framework

•  Filing program for mandatory submission of required information and documents through the Malaysian Income Tax Reporting System for Year of Assessment 2026

•  Global Minimum Tax in Malaysia

•  Ministry of Tourism, Arts and Culture’s updated guidelines on tax deduction for sponsorship of arts, cultural and heritage activities

•  Income tax exemption for Islamic financial-related Labuan trading activities 

•  Sales Tax Policy 1/2026

•  Service Tax Policy

•  Indirect tax legislation updates

The relevant tax changes can be accessed via the above link. 

KPMG’s guide on global withholding taxes can be accessed via the above link.  Our guide is intended to provide a general overview of worldwide taxation of income and gains derived from listed securities as of 31 December 2025 and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.