Budget 2026: SME Tax Handbook - Hernancres Group of Companies

Malaysia Budget 2026:
SME Tax Handbook

The Budget 2026 SME Tax Handbook summarises key tax updates and incentives announced in Malaysia’s Budget 2026.

A joint publication by HernanCres, SME Malaysia, and MiNED.

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Key Highlights – Budget 2026

E-Invoicing: Mandatory nationwide rollout by mid-2026 to improve compliance and reduce tax evasion.
Service Tax: Retained at 8%, excluding food & beverage and telecommunication services.
Capital Gains Tax (CGT): Maintained at 10% for unlisted share disposals.
Luxury Goods Tax (LGT): To be imposed at 5%–10% on selected luxury items from 1 Jan 2026.
Carbon Tax arrives in 2026— targeting iron, steel, and energy sectors under Malaysia’s new climate roadmap.
RM3 billion Green Financing boost through the GTFS for solar, hydrogen, and bioenergy projects.
Venture Capital incentives extended 10 years, with dividend exemptions to fuel Malaysia’s innovation ecosystem.
SJPP Guarantee Ceiling raised to RM 60 billion — giving SMEs easier access to credit and growth funding.

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Get Expert GuidanceReady to Plan Ahead?

Need help applying these incentives to your business?

Our team at HernanCres can help you identify eligible tax deductions, plan compliance strategies, and prepare for 2026 with confidence.

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HERNANCRESAbout Us

HernanCres provides a number of services in consultancy, tax and advisory. Whether you require an on-going solution or temporary project-based support you can expect excellent service from our team which draws on both international experience and local expertise.

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HERNANCRESAbout Us

01170160052

[email protected]

OUR LOCATIONWhere to find us?

27-1, Metro Perdana Barat 2,
Taman Usahawan,
52100, Kuala Lumpur.

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Key Highlights – Budget 2026

Download the Budget 2026 SME Tax Handbook

Thank you!