As gazetted in the Finance (No.2) Act 2023, Malaysia is set to implement the Global Minimum Tax ("GMT") from 1 January 2025. The Malaysian GMT rules are largely adopted from the OECD Global Anti-Base Erosion ("GloBE") Model Rules to align with the global implementation. The GMT rule is aimed at ensuring a top-up tax is imposed on jurisdictions where the Multinational Enterprise ("MNE") Group operates, where the effective tax rate ("ETR") is below 15%. 

The two types of top-up tax being imposed in Malaysia include Domestic Top-Up Tax ("DTT") and Multinational Top-Up Tax ("MTT"). The rule will apply to members of a MNE Group with an annual consolidated revenue of EUR 750 million or more in at least two of the four immediately preceding financial years.

We offer the following services to assist clients in navigating GMT in Malaysia: 

Assessment & Planning

• Impact Assessment
• Safe Harbour Review
• Data & Design Requirements Mapping

Compliance & Implementation

• Reporting & Compliance System Evaluation
• System Implementation
• Preparation & Filing

Training & Advisory

• Documentation & Trainings
• Technical Advisory

For a detailed overview of how BDO can support your organisation in navigating Pillar Two requirements, access our service brochure below.

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Stay up to date with our latest insights on the following: 

• Malaysia Budget 2024 - Finance (No. 2) Bill 2023
• Malaysia Budget 2025 Highlights (Part 2)

You may also click here to visit our BDO Global Pillar Two webpage.

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For expert guidance on GMT Compliance in Malaysia, reach out to our professional tax advisors today. We are here to help you achieve clarity, compliance, and strategic advantages in your global tax planning.