Malaysia has announced multiple tax and compliance changes effective in 2026, introducing expanded eInvoicing obligations, revised stamp duty and capital gains tax treatments, adjustments to indirect taxes (SST, excise and carbon), and updates relevant to taxpayers, employers and global mobility. These developments will have practical implications for compliance, reporting, payroll and crossborder operations from 1 January 2026.
From 1 January 2026, eInvoicing compliance is broadened with new thresholds and submission requirements:
Impact: Organisations must align invoicing systems, establish processes for customer data collection and implement new reporting timelines.
From 1 January 2026, stamp duty compliance transitions to a selfassessment regime via MyTax:
Action: Ensure timely filing and selfassessment compliance to avoid penalties.
Effective 1 January 2026, statutory definitions and CGT treatments are refined:
Note: Coordination between buyers and sellers is critical to avoid cashflow disputes.
Labuan trading entities face strengthened compliance:
Implication: Workforce planning and tax structuring must be revisited for Labuan entities.
From 1 January 2026, indirect tax changes include:
Implications: SST and excise revisions will require updates to pricing, compliance and reporting controls.
Key developments for individuals and employers:
Action: Communicate filing obligations to employees and assess crossborder working arrangements for tax risk.
For further detailed guidance on tax, compliance and mobility requirements in Malaysia, visit our Malaysia Global Insights on the activpayroll website.
For further guidance on managing these updates and ensuring compliance, please complete our Contact Us form and a member of our expert team will be happy to assist with your queries.