CCS Tax

CCS Tax E-invoice insight

28/04/2026

The defined value threshold for Section 15C to apply is:

A) 50% of total tangible assets
B) 65% of total tangible assets
C) 75% of total tangible assets
D) 85% of total tangible assets

27/04/2026

Under Section 15C, gains from the disposal of shares in a controlled company incorporated outside Malaysia are deemed derived from Malaysia when the company owns:

A) Only Malaysian real property
B) Only shares of another controlled company
C) Either Malaysian real property or shares of another controlled company, or both
D) Only Malaysian business assets

23/04/2026

What is the fixed prescribed value for a driver provided by an employer?

A) RM300 per month
B) RM500 per month
C) RM600 per month
D) RM1,000 per month

19/04/2026

The Practice Note No. 2/2026 issued by the Inland Revenue Board of Malaysia explains how REIT/PTF income distributions will be taxed in Malaysia from YA 2026 onwards.

It states that if 90% or more of a REIT's or PTF's total income is distributed to unit holders, the entity enjoys full tax exemption under Section 61A of the Income Tax Act.

The big change is that the earlier concessional/final withholding tax treatment for many non-corporate unit holders ends after YA 2025.

Before YA 2026, many unit holders, such as resident individuals, non-resident individuals, foreign institutional investors, and others, were generally subject to final withholding tax at 10% on gross distributions for YA 2020–2025, while non-resident companies were taxed at 24% final withholding tax.

From YA 2026:
1) Resident individuals: no WHT; taxed under the normal individual progressive tax rates and must declare the income.

2) Resident companies: no WHT; taxed at the normal corporate tax rate.

3) Non-resident companies: treatment unchanged; 24% final WHT still applies.

4) Non-resident individuals / foreign institutional investors / other non-company holders: generally no WHT, but taxed at 30% of chargeable income and must file tax returns.

For general investors, the practical message is simple:
REIT income may now create filing obligations and a higher effective tax burden for some holders from YA 2026.

Investors should carefully review their residence status and investor category. ✍️

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