With the enactment of the Finance (No. 2) Bill 2023 on 29 December 2023, the Global Anti-Base Erosion (GloBE) Rules, i.e., Global Minimum Tax (GMT) have been incorporated into Malaysian tax law. Multinational Top-up Tax (MTT) and the Domestic Top-up Tax (DTT) are effective from the financial year beginning on or after 1 January 2025.
This adoption reflects Malaysia's commitment to curbing tax base erosion and profit shifting while maintaining its competitiveness in the global market. By aligning with international tax standards, Malaysia supports fair taxation and at the same time safeguards its tax revenue base.
GloBE Rules set out the scope and mechanism to collect at least 15% corporate income tax (CIT) on MNE Groups. The first-year filing of 2024 will be due on 30 Jun 2026 in certain countries and jurisdictions.
Regulations about the Global Minimum Tax in Malaysia are available now and are still developing. (Click here to read more).
Global Minimum Tax in Malaysia
Understand the salient points of Malaysia Global Minimum Tax, guidelines and FAQs in our publication
