The Senate has passed a bill to modernise Malaysia’s tax system, introducing digital filing and self-assessment for stamp duty to improve efficiency and compliance.
KUALA LUMPUR: The Senate has passed the Measures for the Collection, Administration and Enforcement of Tax Bill 2025.
The bill aims to strengthen the national taxation system through amendments to five key tax acts.
Deputy Finance Minister Liew Chin Tong said the amendments mandate electronic submission of tax information.
He stated this would reduce compliance costs for taxpayers.
“The measure supports the government’s efforts in modernising public services,” Liew said during the debate’s winding-up.
He added that a Stamp Duty Self-Assessment System will be implemented from 1 January 2026.
This follows the existing Real Property Gains Tax self-assessment model.
The system is designed to improve efficiency through a digital platform, aligning with practices in countries like Singapore and the UK.
On the issue of tax refunds, Liew said the government is committed to speeding up the process.
Up to 30 November, the Inland Revenue Board (IRB) had processed RM14.55 billion in refunds across 3.47 million cases.
This represents a 17.5% increase compared to the RM12.39 billion refunded in 2024.
Liew said the IRB has a strategy to ensure government refund allocations are distributed fairly and orderly.
Regarding broader revenue governance, he said Budget 2026 emphasises prudent and transparent fiscal management.
The focus is on using national revenue for targeted assistance and strategic investments.
The government will continue strengthening revenue generation through its fiscal reform agenda.
This includes addressing leakage by increasing tax compliance and enhancing law enforcement.
Six senators participated in the debate on the bill.
They submitted views on digitalisation, stamp duty, and revenue governance improvements.
