Tax Law

Is the Metaverse Considered as Electronic Commerce in Malaysia?

eCommerce in Malaysia is primarily given legal recognition by the Electronic Commerce Act 2006 (‘ECA 2006’). The ECA 2006 facilitates electronic transactions by recognising the legal validity of electronic messages, documents, and contracts. It broadly covers ‘commercial transactions’ conducted via electronic means, encompassing the supply or exchange of goods or services.

While Malaysian law does not explicitly mention the ‘Metaverse’, many of its activities share the same fundamental characteristics as eCommerce.

SST Expansion 2025: Updates

We previously wrote about key changes introduced under the expansion of Sales Tax and Service Tax (SST) in our article dated 24th June 2025. Since the first announcement of the SST expansion on 9th June 2025, the Ministry of Finance (“MOF”) and the Royal Malaysian Customs Department (“RMCD”) have made several revisions and released guidelines and tax policies, after considering public opinion.

Some revisions were announced barely a week before the expansion came into effect on 1st July 2025.

Maximizing Your Tax Relief in Sports: What Every Malaysian Taxpayer Should Know

In 2024, the Ministry of Youth and Sports, along with the Inland Revenue Board, announced a new tax relief for Malaysian taxpayers for the assessment year 2024. The tax relief covers 103 types of sports listed in the First Schedule of the Sports Development Act 1997 (‘the SDA’). The newly introduced tax relief for sports equipment and sports activities for oneself, parents, spouse, and/or child is up to RM1,000.

SST Expansion 2025: Highlights and Next Steps

On 9 June 2025, the Ministry of Finance issued a Press Release to announce a major expansion of its Sales and Service Tax (SST) effective 1 July 2025.

The announcement was foreshadowed in Budget 2025 (albeit without much detail) to increase government revenue and support fiscal reforms. The new structure will cover a wider range of taxable services and introduce changes to the sales tax on locally manufactured and/or imported goods.

The key to understanding the expansion is the Malaysian Government’s oft-repeated statements that the expansion aims to increase revenue without burdening the ordinary man on the street.

美国对等关税 — 减轻影响与规范应对措施

美国总统唐纳德·特朗普于2025年4月2日对进口至美国的商品提高关税，该措施分为两个部分：

对所有进口至美国的商品征收单边基础关税10%（自2025年4月5日起实施）；以及
“对等”及特定国家的关税，该关税率据称是根据美国与各国之间现有贸易逆差的状况分配（自2025年4月9日起生效）。
马来西亚的出口商品被征收24%的关税，相较于此前2.2%的贸易加权平均关税，关税提高的幅度相当之高。

US Reciprocal Tariffs – Minimize Impact and Regulate Response

On 2 April 2025, US President Donald Trump announced a tariff hike on goods imported from other parts of the world into the United States of America, consisting of a unilateral baseline 10% on all imports to the US (implemented on 5 April 2025); and “Reciprocal” and country-specific tariffs, with rates purportedly assigned to each country based on the prevailing trade deficit between the US and that country (to take effect on 9 April 2025).

Malaysia was hit with a 24% tariff on its imports to the US, a significant increase from the previous 2.2% trade-weighted average tariff.

Tax Case Study: Ketua Pengarah Hasil Dalam Negeri (KPHDN) v Kind Action (M) Sdn Bhd

In 2007, a Group decision to withdraw from the plantation business altogether required the Respondent to dispose of the lands. The Respondent subdivided the lands into smaller lots and sold the lands to various parties vide ten transactions between 2007 and 2017. The Respondent submitted Real Property Gains Tax (‘RPGT’) returns for the disposals, and the Inland Revenue Board (‘IRB’) issued Real Property Gains Tax Act 1976 (‘the RPGTA’) assessments and RPGT certificates from 2011 to 2018.

In 2019, after a tax investigation, the IRB took the position that the proceeds of the disposals were subject to income tax under s 4(a) of the Income Tax Act (‘the ITA’).

In 2020, the IRB, without first discharging or revoking the RPGTA certificates and assessments, raised Notices of Additional Assessment against the Respondent, imposing income tax and 60% penalties (more than RM81 million).

Is the Metaverse Considered as Electronic Commerce in Malaysia?

SST Expansion 2025: Updates

Maximizing Your Tax Relief in Sports: What Every Malaysian Taxpayer Should Know

SST Expansion 2025: Highlights and Next Steps

美国对等关税 — 减轻影响与规范应对措施

US Reciprocal Tariffs – Minimize Impact and Regulate Response

Tax Case Study: Ketua Pengarah Hasil Dalam Negeri (KPHDN) v Kind Action (M) Sdn Bhd

Tax Case Study: Keysight Technologies Malaysia Sdn Bhd v. Director General of Inland Revenue

Tax Case Study: Medan Prestasi Sdn Bhd v. Ketua Pengarah Hasil Dalam Negeri

Finance Act 2024 Amendments: The Stamp Duty Focus

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