[TAX, CUSTOMS & TRADE] 2025 SST Expansion: Key Changes and What Businesses Need to Know
Effective from 1 July 2025, the Government will enforce a major expansion of the Sales Tax and Service Tax (SST) regime.
First introduced in Budget 2025 and originally scheduled to take effect on 1 May 2025, the rollout was later deferred. The new implementation date of 1 July 2025 was recently confirmed by the Ministry of Finance in its press release dated 9 June 2025.
This alert provides an overview of the expanded SST framework and highlights key areas that businesses should be aware of.
For any inquiries, please contact Partner Ivy Ling Yieng Ping (il@lh-ag.com).
[SUCCESSION, TRUSTS, ESTATE PLANNING & PRIVATE WEALTH] Establishing a Single Family Office in Forest City SFZ – What You Need to Know
Malaysia’s new Single Family Office (“SFO”) Incentive Scheme is making waves for the ultra-wealthy. It offers a 0% tax rate for up to 20 years, plus exemptions from stamp duty and capital gains tax on the initial transfer of assets into the SFO.
To qualify, you will need two entities: a family investment vehicle and a licensed management company. The minimum asset under management (“AUM”) requirement is RM30 million.
Compared to Singapore and Hong Kong, Malaysia offers lower entry thresholds, generous tax holidays, and strong regulatory support—all within Forest City’s Special Financial Zone (“SFZ”).
In our latest article, we break down the structure, process, and legal considerations for setting up an SFO in Malaysia.
For advice on establishing an SFO in Malaysia, please reach out to Partner Chris Toh Pei Roo (tpr@lh-ag.com), or Associates Jay Fong Jia Sheng (fjs@lh-ag.com) and Soon Jia Ying (jys@lh-ag.com), of Lee Hishammuddin Allen & Gledhill’s Succession, Trusts, Estate Planning & Private Wealth Practice.
[TAX, CUSTOMS & TRADE] Special Alert: Stamp Duty Treatment for Employment Contracts
On 6 June 2025, the Inland Revenue Board of Malaysia issued a Media Statement, following a policy decision by the Ministry of Finance, clarifying the stamp duty treatment for employment contracts executed before and after 1 January 2025.
In our latest alert, we provide a concise summary of the Ministry’s decision.
For further information on Stamp Duty, please contact Associate Jay Fong Jia Sheng (fjs@lh-ag.com) or Partners, Jason Tan Jia Xin (tjx@lh-ag.com) and Chris Toh Pei Roo (tpr@lh-ag.com).
[TAX, CUSTOMS & TRADE] Final Anti-Dumping Duties Imposed on Electrolytic Tinplate from China, Korea, Japan, and India – Ministry of Investment, Trade and Industry Affirmative Final Determination
On 9 May 2025, the Ministry of Investment, Trade and Industry (“MITI”) issued its Affirmative Final Determination in the anti-dumping investigation concerning electrolytic tinplate imported from China, Korea, Japan, and India. This follows a detailed investigation initiated by a petition filed by Perusahaan Sadur Timah Malaysia (Perstima) Berhad on 28 June 2024.
MITI concluded that dumping had occurred and imposed definitive anti-dumping duties ranging from 4.48% to 36.80% across the four countries. This decision is a crucial step in restoring fair trade and protecting the Malaysian tinplate industry from material injury caused by unfair pricing practices.
Perstima was represented by Jason Tan Jia Xin and Yap Xue You of Lee Hishammuddin Allen & Gledhill’s Tax, Customs & Trade Practice.
For further information on Malaysia’s trade remedy laws, or to discuss how we may assist in anti-dumping or countervailing duty proceedings, please contact Partner Jason Tan Jia Xin (tjx@lh-ag.com) or Associate Yap Xue You (yxy@lh-ag.com).
[DISPUTE RESOLUTION] Trade War Tariffs: Can Malaysian Businesses Invoke Force Majeure?
On 2 April 2025, the United States (“US”) government announced extensive global tariffs on imports from various countries, including Malaysia. From the announcement, Malaysian imports into the US will be subject to “reciprocal tariffs” at the rate of 24%. Although implementation of the tariff has been temporarily suspended for 90 days with effect from 9 April 2025 to facilitate negotiations between the US and the affected nations, the potential imposition of tariffs has generated much uncertainty for Malaysian businesses, especially those engaged in ongoing trades with US counterparts.
Amidst this uncertainty, an important question arises: Can these “reciprocal tariffs” amount to a valid force majeure event under Malaysian law, thereby excusing affected businesses from their contractual obligations?
In this alert, we examine the application of force majeure clause under the Malaysian law and discuss whether the imposition of new tariffs amount to a force majeure event. We also highlight several steps that Malaysian businesses should take if they are affected by the potential implementation of these new tariffs.
If you have any queries, please contact Chia Oh Sheng (cos@lh-ag.com), Lim Jun Xian (ljx@lh-ag.com) or Athena Chan Yat Mun (ymc@lh-ag.com).
[TAX, CUSTOMS & TRADE] Protecting Exporters: COA Rules Against Customs’ Imposition of Anti-Dumping Duties on LMWs
Ketua Pengarah Kastam v Sunrise Home Goods (M) Sdn Bhd
On 9 December 2024, the Court of Appeal (“COA”) ruled in favour of Sunrise Home Goods (M) Sdn Bhd (“Taxpayer”), unanimously dismissing the Director General of Customs’ (“Customs”) appeal and upholding the High Court’s decision that Licensed Manufacturing Warehouses (“LMW”) and Licensed Warehouses (“LW”) are exempt or enjoy suspension from the payment of all customs duties for the importation of raw materials, which includes anti-dumping duties, under the Customs Act 1967 (“Customs Act”).
In our latest alert, we provide a concise overview of the key facts, arguments, and legal reasoning underlying the decision.
The Taxpayer was successfully represented by Dato’ Nitin Nadkarni, Ivy Ling Yieng Ping, and Jay Fong Jia Sheng from Lee Hishammuddin Allen & Gledhill’s Tax, Customs & Trade Practice.
For any inquiries, please contact Partner Ivy Ling Yieng Ping (il@lh-ag.com).
[DISPUTE RESOLUTION] Court of Appeal Affirms Foreign Status Alone Does Not Warrant a Stay of Execution
In cases of monetary judgment, can a successful foreign litigant be denied the “fruits” of its litigation simply by reason of its status as a foreign entity? The Court of Appeal recently addressed this question in United Overseas Bank (China) Limited, Chengdu Branch v Siow Kwang Joon @ Siow Kwong Shang, delivering an important decision for cross-border litigants. In short, the Court of Appeal in its oral grounds said “… merely because a successful litigant is overseas does not constitute special circumstances”.
This decision provides clarity and assurance to foreign litigants seeking to enforce its rights in Malaysia, especially in commercial matters involving cross-border guarantees and financial facilities.
In this LHAG Insights, Partner Chia Oh Sheng and Nicola Tang Zhan Ying, along with Chris Lim Yen Hao, discuss the recent Court of Appeal decision.
If you have any query, please contact Associate Chris Lim Yen Hao (chs@lh-ag.com), or Partner Chia Oh Sheng (cos@lh-ag.com) and Nicola Tang Zhan Ying (tzy@lh-ag.com).
[ENERGY, PROJECTS & INFRASTRUCTURE] Watt’s New? Energy Commission Issues EV Charging Guidelines
Recently, the Energy Commission released the Guidelines on Electric Vehicle Charging System to regulate the licensing and technical standards for installation of EV charging stations in Malaysia. This alert breaks down the key highlights of the guidelines.
If you have any queries, please contact authors, Associate Kerryn Toh (ryn@lh-ag.com) or her team Partner, Joyce Ong Kar Yee (oky@lh-ag.com), from the Energy, Projects & Infrastructure Practice.
[TAX, CUSTOMS & TRADE] Federal Court Clarifies Limits of DGIR’s Powers: Estoppel Applies, Double Taxation is Illegal, RPGT Assessments are Final
On 5.3.2025, the Federal Court delivered a landmark decision in Ketua Pengarah Hasil Dalam Negeri v Kind Action (M) Sdn Bhd [2025] CLJU 539, unanimously ruling in favour of the taxpayer. The Court clarified the legal limits of the Director General of Inland Revenue’s (“DGIR”) powers in the context of overlapping tax regimes.
The Federal Court held that:
• The DGIR cannot impose income tax on a transaction already subject to RPGT without first discharging the RPGT assessments — doing so would amount to double taxation, which is illegal.
• Estoppel and legitimate expectation may apply against the DGIR, overturning the long-held position stemming from the Teruntum Theatre case.
• RPGT assessments that have become final and conclusive under Section 20(1)(a) of the RPGT Act 1976 are binding on both the taxpayer and the DGIR.
• Judicial review remains available, particularly where there is clear illegality, even if alternative remedies exist.
This decision re-establishes legal certainty and taxpayer protection — especially in situations involving amended assessments, overlapping tax regimes, or previously settled tax positions.
Dato’ Nitin Nadkarni, Chris Toh Pei Roo, Soon Jia Ying, and Yap Xue You of Lee Hishammuddin Allen & Gledhill’s Tax, Customs & Trade Practice represented the Malaysian Bar, who appeared as Amicus Curiae at the Federal Court.
If you have any inquiries on tax assessments, overlapping tax regimes, or dispute resolution, please contact Partner Chris Toh Pei Roo (tpr@lh-ag.com).
[TAX, CUSTOMS & TRADE] The Discounted 24% Reciprocal Tariff: What Matters and What Doesn’t
24% reciprocal tariffs on Malaysian exports to the US are set in stone for now, unless G2G negotiations alter the course. Manufacturers with substantial exports to the US should independently consider mitigating trade strategies to protect their interests.
If you have any inquiries, please contact Partner Jason Tan Jia Xin (tjx@lh-ag.com).