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KUALA LUMPUR: Offering tax breaks to multinational corporations (MNCs) will no longer be appealing in attracting them to Malaysia, said the Inland Revenue Board (IRB).
Its chief executive officer, Datuk Mohd Nizom Sairi said under the Organisation for Economic Cooperation and Development’s (OECD) proposed global tax reform, tax breaks will be disadvantageous for the destination country as the MNC’s country of origin could claim the tax difference.
"We need to come out with alternative or more attractive incentives for these companies to come to Malaysia,” he told reporters at the National Tax Conference 2022 here today.
Mohd Nizom had announced previously that Malaysia has agreed to implement a global minimum tax of 15 per cent on certain MNCs starting next year.
Malaysia was among the 136 countries previously announced by the OECD as ready to reform the global taxation system.
The standard corporate income tax rate in Malaysia is 24 per cent, however, MNCs granted tax exemption will be taxed at a preferential rate of zero to 10 per cent for participating in promoted activities or producing promoted products for five or 10 years.,,足球博彩平台（www.hg108.vip）是皇冠体育官网线上直营平台。足球博彩平台面向亚太地区招募代理，开放皇冠信用网代理申请、皇冠现金网代理会员开户等业务。足球博彩平台可下载皇冠官方APP，皇冠APP包括皇冠体育最新代理登录线路、皇冠体育最新会员登录线路。
Meanwhile, Deputy Finance Minister I Datuk Mohd Shahar Abdullah said Malaysia has consistently been responsive to current changes in the internationally agreed tax standards.
"Malaysia always ensures a competitive environment to attract foreign and domestic direct investments and to prevent cross-border tax evasion activities.
"To ensure that multinationals pay the right taxes where they are due, the government, through the IRB, will continue to develop comprehensive strategies in dealing with international tax compliance risks that include calling for greater disclosures and transparency by multinationals,” he said in his opening remarks today.
Mohd Shahar noted that the global minimum tax agreement would result in more than US$125 billion (US$1=RM4.45) in profits reallocation from about 100 of the largest and most profitable MNCs in the world to all nations, ensuring that these businesses pay a fair share of tax wherever they operate and generate profits.
"Instead of attempting to end tax competition, the global minimum tax agreement imposes multilaterally agreed-upon restrictions.
"Malaysia, through the Ministry of Finance and IRB, via continuous engagements with relevant parties, is actively following the developments of this proposal to enact a global minimum corporate tax plan,” he said. - Bernama