PETALING JAYA: The Malaysian Institute of Certified Public Accountants (Micpa) and Deloitte Malaysia have jointly released a report which shares their thoughts on tax reforms needed for the Malaysian tax landscape.
In a statement, they said the report, titled “Tax Reforms: The Way Forward for the Malaysian Tax System”, aimed to ensure Malaysia moulded a robust tax system to enable the government to continue collecting tax revenue it needed to stimulate economic growth.
“The tax system should also be analysed on the basis of what is best for the tax system, what are the most efficient ways of collecting tax and enhancing the livelihood of the rakyat.
“It is hoped that the proposals in the report will be considered by the government in its tax reform initiatives, as they reflect present business needs and the country’s current economic situation,” said the statement, adding that the proposals were suited for rollout in stages post-pandemic.
The report covered proposals on tax reforms in the areas of corporate tax, personal tax, indirect tax and other taxes.
It also covered international tax areas encompassing realignment with international tax standards and transfer pricing, as well as areas relating to environmental sustainability.
The report also summarised the tax reform processes adopted by other countries. Some notable proposals are summarised as follows:
> Corporate tax – the report discussed the development of tax incentives in Malaysia, their effectiveness, the impact arising from such fiscal incentives, and the need to streamline current tax incentives to optimise returns arising from tax benefits granted to targeted economic activities.
> Indirect tax – the report considered the need for Malaysia to broaden the scope of the sales and service tax, or bring back the goods and services tax within the next five years. The report also weighed in on the differences between both the indirect tax models.
> Environmental sustainability – the report discussed the benefits of a carbon tax and has proposed several green tax incentive reforms already implemented in certain developed countries in Europe which can be adopted in Malaysia.
To view the report, visit https://bit.ly/3oYyINP. ― Bernama