Temporary Exemption of Capital Gains Tax for Jan - Feb 2024

The Income Tax (Exemption) (No. 7) Order 2023, this Order relates to the tabling of Finance (No.2) Bill 2023 and provides a tax exemption for disposal gains from unlisted company shares. Specifically:

1. It exempts companies, LLPs, trust bodies and co-operatives from paying income tax on any gains or profits received from disposing of shares of companies incorporated in Malaysia that are not listed on the stock exchange.

2. The exemption is only applicable for the disposal of such unlisted company shares made during the period from 1 January 2024 to 29 February 2024.

3. The exemption does not apply if the disposal gains are chargeable to tax as business income (e.g. share trading could be part of operating revenue).

Overall, this Order seeks to provide short-term tax relief to facilitate and encourage the disposal of shares in unlisted Malaysian incorporated entities during the two months mentioned.

Download and read:

277.1 [P.U A 410_2023)] Income Tax (Exemption) (No. 7) Order 2023.pdf

Download PDF • 589KB