Two-year tax exemption for organisers of international trips, conferences and exhibitions

A new gazette order, P.U. (A) 355, published on 9 October 2026, grants an income tax exemption for the business of promoting or organising incentive trips, conferences and trade exhibitions of international standard held in Malaysia for foreign participants. The exemption runs from year of assessment 2026 to year of assessment 2027.

To qualify, the organiser must be a company incorporated under the Companies Act 2016, or an association or organisation registered under the Societies Act 1966, and must be resident in Malaysia.

The exemption depends on volume. In a basis period, the organiser must bring in at least 1,500 foreign participants for incentive trips, 2,000 for conferences, or 3,000 for trade exhibitions. These numbers are verified by the Ministry of Tourism, Arts and Culture. Foreign participants are individuals who are not Malaysian citizens, but non citizens who are resident in Malaysia do not count.

What is exempted is the statutory income from the qualifying activity, meaning the fees and other payments received, less allowable expenses and capital allowance. Income from other parts of the business is outside the exemption.

Two practical obligations come with it. The organiser must keep a separate account for income from the qualifying activity, and the exemption does not remove the duty to submit tax returns, statements of accounts or any other information required under the Income Tax Act 1967.

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