KUALA LUMPUR (March 2): Malaysia’s tax revenue is projected to increase in 2026, underpinned by steady wage growth, stronger corporate earnings and improved tax compliance. Individual income tax revenue is expected to rise 9.4% year-on-year (y-o-y) to RM49.07 billion, while corporate income tax collection is projected to grow 6.5% y-o-y to RM103.35 billion. For 2025, the estimated collection for individual income tax stands at RM44.86 billion, while corporate income tax is projected at RM97.03 billion. Sales tax collection is forecast at RM26.6 billion in 2026, with service tax revenue projected at RM33 billion. Higher corporate earnings, particularly in the services and manufacturing sectors, along with the phased implementation of e-invoicing beginning August 2024, are also expected to lift corporate tax revenue, reduce leakages and strengthen compliance.

Source: The Edge Markets March 02, 2026 03:40 UTC