Preparing for a global tax reform

Ernst & Young Tax Consultants Sdn Bhd Malaysia tax managing partner Farah Rosley said: “We should be nimble in our approach to granting tax incentives, as large multinationals may no longer require or prefer a 0% tax rate in Malaysia if they just have to pay a top-up tax elsewhere. Our tax incentives must be carefully tailored based on the requirement of the individual investor."

PETALING JAYA: The proposed global minimum corporate tax (GMT), to curtail tax competition and shifting of profits, is set to benefit Malaysia if it follows international tax developments and does not forgo taxing rights on the profits generated here to other countries.

Initially set to roll out next year, the global tax has been delayed until 2024, according to the Organisation for Economic Co-operation and Development (OECD).