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Article · 6 August 2026 · Academy of Tax Law

Malaysia extends foreign-sourced capital gains exemption into 2026

capital gains taxforeign-sourced incomeMalaysiaexemptioncorporate tax

Malaysia published the Income Tax (Exemption) (No. 3) Order 2024 (Amendment) Order 2026 in the Official Gazette on 29 July 2026. The instrument extends the exemption regime first introduced by the original 2024 Order.

The original exemption shields gains from the disposal of capital assets situated outside Malaysia where those gains are received by companies, limited liability partnerships, trust bodies, and cooperative societies that are resident in Malaysia. Qualifying recipients must satisfy certain conditions, understood to include economic substance requirements, though the source text was truncated before full details were reproduced.

Practitioners advising Malaysian-resident entities on offshore asset disposals should review the amending Order directly to confirm the extended period and any revised conditions.

Primary sources