Tax
From The Report: Malaysia 2014
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This chapter gives an overview of Malaysia’s tax environment, focusing on the regulations and rates that affect businesses and investments. It also features an analysis of the new tax on goods and services that is set to go into effect in 2015.

Articles from this Chapter

Overview

Supportive environment: A general overview on tax regulations and rates for investors
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I. Income Tax Malaysia operates a self-assessment system of income tax. This requires taxpayers to be responsible for computing the correct amount of taxes as the tax returns filed are deemed to be the official notice of assessment. The Inland Revenue Board (IRB) through regular tax audits carries out enforcement. To ensure that the tax audits are carried out in a fair, transparent and impartial manner, the IRB has issued the 2013 tax audit framework that went into effect on April 1, 2013. As of…

Analysis

Exploring new avenues: A new tax on goods and services is set to be introduced
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On October 25, 2013, Malaysian Prime Minister Najib Razak delivered his 2014 budget speech and made a bold announcement that a goods and services tax (GST) of 6% will be effective in Malaysia as of April 1, 2015. GST is considered necessary to tackle the country’s budget deficit and to provide a stable source of revenue to Malaysia and avoid its overdependence on oil and gas revenues. The idea of implementing GST in Malaysia is not new and has been debated several times in the past; however, it…