MEASURES FOR THE COLLECTION, ADMINISTRATION AND ENFORCEMENT OF TAX ACT 2025

Measures for the Collection, Administration and Enforcement of Tax 1 LAWS OF MALAYSIA Act 875 MEASURES FOR THE COLLECTION, ADMINISTRATION AND ENFORCEMENT OF TAX ACT 2025 2 Laws of Malaysia Act 875 Date of Royal Assent ... ... 27 December 2025 Date of publication in the Gazette ... ... 31 December 2025 Publisher’s Copyright C PERCETAKAN NASIONAL MALAYSIA BERHAD All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of Percetakan Nasional Malaysia Berhad (Appointed Printer to the Government of Malaysia). Measures for the Collection, Administration and Enforcement of Tax LAWS OF MALAYSIA 3 Act 875 MEASURES FOR THE COLLECTION, ADMINISTRATION AND ENFORCEMENT OF TAX ACT 2025 ARRANGEMENT OF SECTIONS Part I PRELIMINARY Section 1. 2. Short title Amendment of Acts Part II AMENDMENTS TO THE INCOME TAX ACT 1967 3. Commencement of amendments to the Income Tax Act 1967 5. Amendment of section 152a 4. Amendment of section 82b Part III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976 6. Commencement of amendments to the Real Property Gains Tax Act 1976 7. Amendment of section 13 9. Amendment of section 19a 8. 10. 11. 12. 13. Amendment of section 13a Amendment of section 36 New section 43a Amendment of section 51 Amendment of section 57a 4 Laws of Malaysia Act 875 Part IV AMENDMENTS TO THE STAMP ACT 1949 Section 14. Commencement of amendments to the Stamp Act 1949 16. Amendment of section 9 15. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Amendment of section 4a Amendment of section 12a Amendment of section 17 Amendment of section 20 Amendment of section 20b Amendment of section 35a Amendment of section 36 Amendment of section 36d Amendment of section 47a Amendment of section 61 Amendment of section 63 Amendment of section 64 Amendment of section 72a New section 76b Amendment of section 77a Part V AMENDMENTS TO THE LABUAN BUSINESS ACTIVITY TAX ACT 1990 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. Commencement of amendments to the Labuan Business Activity Tax Act 1990 Amendment of section 3a Amendment of section 5 Amendment of section 6a Amendment of section 10 New section 18a Substitution of section 21a Amendment of section 21b Amendment of section 21c Amendment of section 28 Measures for the Collection, Administration and Enforcement of Tax 5 Part VI AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967 Section 41. Commencement of amendments to the Petroleum (Income Tax) Act 1967 42. New section 67a 43. Amendment of section 82a 6 Laws of Malaysia Act 875 7 Measures for the Collection, Administration and Enforcement of Tax LAWS OF MALAYSIA Act 875 MEASURES FOR THE COLLECTION, ADMINISTRATION AND ENFORCEMENT OF TAX ACT 2025 An Act to provide for measures relating to the implementation of the collection, administration and enforcement of tax by amending the Income Tax Act 1967, the Real Property Gains Tax Act 1976, the Stamp Act 1949, the Labuan Business Activity Tax Act 1990 and the Petroleum (Income Tax) Act 1967. [ ] ENACTED by the Parliament of Malaysia as follows: Part I PRELIMINARY Short title 1. This Act may be cited as the Measures for the Collection, Administration and Enforcement of Tax Act 2025. Amendment of Acts 2. The Income Tax Act 1967 [Act 53], the Real Property Gains Tax Act 1976 [Act 169], the Stamp Act 1949 [Act 378], the Labuan Business Activity Tax Act 1990 [Act 445] and the Petroleum (Income Tax) Act 1967 [Act 543] are amended in the manner specified in Parts II, III, IV, V and VI respectively. 8 Laws of Malaysia Act 875 Part II AMENDMENTS TO THE INCOME TAX ACT 1967 Commencement of amendments to the Income Tax Act 1967 3. (1) Section 4 has effect for the year of assessment 2027 and subsequent years of assessment. (2) Paragraphs 5(a) and (c) and subparagraph 5(b)(ii) come into operation on 1 January 2027. (3) Subparagraph 5(b)(i) has effect for the year of assessment 2026 and subsequent years of assessment. (4) Paragraph 5(d) comes into operation on 1 January 2026. Amendment of section 82b 4. The Income Tax Act 1967, which is referred to as the “principal Act” in this Part, is amended in section 82b— (a) in the shoulder note, by substituting for the words “chargeable income and tax payable” the words “chargeable income, tax payable, etc.”; (b) by inserting after subsection (1) the following subsection: “(1a) Where a person referred to in paragraphs 86(1)(a) and (b) has furnished to the Director General a return in accordance with section 86, that person shall provide information and furnish documents as may be determined by the Director General for the purpose of ascertaining the divisible income or the divisible loss from the business of a partnership on an electronic medium or by way of electronic transmission within thirty days after the due date for furnishing of the return.”; and (c) in subsection (2), by substituting for the words “subsection (1)” the words “subsections (1) and (1a)”. Measures for the Collection, Administration and Enforcement of Tax 9 Amendment of section 152a 5. Section 152a of the principal Act is amended— (a) in subsection (3), by substituting for the words “in writing” the words “in a prescribed form”; (b) in subsection (3a)— (i) by inserting after the words “subsection 75(1)” the words “or 86(1)”; and (ii) by substituting for the words “in writing” the words “in a prescribed form”; (c) by inserting after subsection (3a) the following subsection: “(3b) The authorization referred to in subsections (3) and (3a) shall be furnished to the Director General on an electronic medium or by way of electronic transmission in accordance with this section.”; and (d) in subsection (4), by inserting after the words “subsection (3)” the words “or (3a)”. Part III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976 Commencement of amendments to the Real Property Gains Tax Act 1976 6. (1) Sections 7, 8, 9, 10, 11 and 12 come into operation on 1 January 2026. (2) Section 13 comes into operation on 1 January 2027. 10 Laws of Malaysia Act 875 Amendment of section 13 7. The Real Property Gains Tax Act 1976, which is referred to as the “principal Act” in this Part, is amended in section 13 by inserting after subsection (7) the following subsections: “(8) A person who disposes of a chargeable asset and is required to make a return under this section may notify the acquirer the amount of tax payable on the chargeable gain for the disposal in the return made under subsection (1) for the purposes of section 21b. (9) The notification made under subsection (8) shall be deemed to have been served on the acquirer by the disposer on an electronic medium or by way of electronic transmission on the day which the return made under subsection (1) is furnished to the Director General.”. Amendment of section 13a 8. Section 13 a of the principal Act is amended by inserting after subsection (1) the following subsection: “(1a) The person referred to in subsection (1) shall furnish to the Director General an amended return in the prescribed form on an electronic medium or by way of electronic transmission in accordance with section 57a.”. Amendment of section 19a 9. Paragraph 19 a (5)(a) of the principal Act is amended by substituting for the words “in writing” the words “in the prescribed form”. Amendment of section 36 10. Paragraph 36(1)(b) of the principal Act is amended by substituting for the words “section 27 or subsection 28(3)” the words “section 27, subsection 28(3), section 28a or 28b”. Measures for the Collection, Administration and Enforcement of Tax 11 New section 43a 11. The principal Act is amended by inserting after section 43 the following section: “Power to issue guidelines 43 a . (1) The Director General may issue guidelines as the Director General thinks expedient or necessary to clarify the provisions of this Act or to facilitate the compliance of the law or any other matter relating to this Act. (2) The Director General may revoke, revise or amend the whole or any part of any guidelines issued under this section.”. Amendment of section 51 12. Section 51 of the principal Act is amended by inserting after subsection (1) the following subsection: “(1a) The Director General may, by notice in writing, withdraw at any time the declaration made under subsection (1).”. Amendment of section 57a 13. Section 57a of the principal Act is amended— (a) in subsection (3), by substituting for the words “in writing” the words “in a prescribed form”; and (b) by inserting after subsection (3) the following subsection: “(3a) The authorization referred to in subsection (3) shall be furnished to the Director General on an electronic medium or by way of electronic transmission in accordance with this section.”. 12 Laws of Malaysia Act 875 Part IV AMENDMENTS TO THE STAMP ACT 1949 Commencement of amendments to the Stamp Act 1949 14. This Part comes into operation on 1 January 2026. Amendment of section 4a 15. The Stamp Act 1949, which is referred to as the “principal Act” in this Part, is amended in subsection 4 a (3) by substituting for the words “not exceeding two hundred and fifty ringgit” the words “of not less than one thousand ringgit and not exceeding ten thousand ringgit”. Amendment of section 9 16. Subsection 9(3) of the principal Act is amended by substituting for the words “two hundred ringgit or ten per centum” the words “five hundred ringgit or twenty per centum”. Amendment of section 12a 17. Section 12a of the principal Act is amended by substituting for the words “Item 32(a) or (aa)” the words “Item 32(a), (aa) or (ab)”. Amendment of section 17 18. Section 17 of the principal Act is amended by substituting for the words “Item 32(a) or (aa)” wherever appearing the words “Item 32(a), (aa) or (ab)”. Amendment of section 20 19. Subsection 20(4) of the principal Act is amended by substituting for the words “Item 32(a) or (aa)” the words “Item 32(a), (aa) or (ab)”. Measures for the Collection, Administration and Enforcement of Tax 13 Amendment of section 20b 20. Subsection 20 b (2) of the principal Act is amended by substituting for the words “Item 32(a) or (aa)” the words “Item 32(a), (aa) or (ab)”. Amendment of section 35a 21. Subsection 35 a (2) of the principal Act is amended by deleting the words “for a year of assessment”. Amendment of section 36 22. Section 36 of the principal Act is amended by substituting for subsection (2) the following subsection: “(2) For the purposes of this Act, where— (a) the return is furnished together with an instrument within the period specified in section 43 or 47, and the Collector is deemed to have made an assessment under paragraph (1)(a)— (i) the return shall be deemed to be an assessment; and (ii) the duty payable on the instrument shall be due and payable and the instrument shall be stamped within thirty days from the date of the assessment by the Collector; or (b) the return is furnished together with an instrument not within the period specified in section 43 or 47, and the Collector is deemed to have made an assessment under paragraph (1)(a)— (i) the return shall be deemed to be an assessment; and 14 Laws of Malaysia Act 875 (ii) the duty payable on the instrument shall be due and payable and the instrument shall be stamped within thirty days from the date of the assessment by the Collector together with the penalty payable under section 47a.”. Amendment of section 36d 23. Subsection 36d(2) of the principal Act is amended by inserting after the words “section 36b” the words “, 36ca”. Amendment of section 47a 24. Subsection 47 a (1) of the principal Act is amended by inserting after the words “in or under” the words “subsection 36(2),”. Amendment of section 61 25. Section 61 of the principal Act is amended by substituting for the word