Global Daily Tax News, Malaysia Gazettes Transfer Pricing Regime Amendments, (Sep 3, 2026)

Malaysia has published in its Official Gazette the Income Tax (Transfer Pricing) (Amendment) Rules 2026.

The amendments have retroactive effect from the 2023 year of assessment.

The amendment newly defines the term "Multinational Enterprise Group" to mean "a group of associated enterprises that have business establishments in two or more jurisdictions."

Importantly, the legislation enables taxpayers to seek corresponding adjustments domestically, where an adjustment is made to a related-party's assessment.

The following provision is added to the Rules, in a new subrule (1A) to Rule 13:

"An adjustment made under subrule (1) in respect of an assessment made on any person in a controlled transaction may be reflected by an offsetting adjustment on the assessment of the other person in the controlled transaction, upon request by that other person and subject to the approval of the Director General.".