Tax experts see gradual reduction in Malaysia's corporate tax

PETALING JAYA: Tax experts anticipate a gradual reduction in corporate tax in the years to come, once the Government reaps the benefits of the implementation of the goods and services tax (GST).

It had been announced that corporate tax would be trimmed by one percentage point from 25% to 24% in the year of assessment 2016. For Budget 2015, Taxand Malaysia Sdn Bhd chairman Dr Veerinderjeet Singh expected the rate of reduction to remain at one percentage point because a further reduction would reduce the Government’s tax revenue. He explained that the purpose of the one percentage point drop was to ease the burden of companies with their tax bills due to the implementation of the GST as well as the costs of installing the systems.