Malaysia To Become Competitive With Company Tax Cuts
Harpal S Dhillon, sub-committee chairman
of the Malaysian Institute of Taxation, has said that there is a 'high
probability' that company tax in Malaysia will be cut from 28 per cent
to about 26 per cent in the forthcoming budget, personal income tax bands
may also be reduced. According to the tax expert a reduction
in company tax will enhance the country's competitiveness against its
regional rivals Singapore and Hong Kong. Harpal also suggested that the
introduction of a goods and services tax would compensate for the loss
in revenue resulting from the tax cut: 'This will help to generate internal
growth in the absence of external growth. This is the trend worldwide:
to reduce corporate tax and enlarge service tax,' he said. Harpal also said that the Labuan Offshore
Financial Services Authority should implement advance tax rulings which
would attract more companies and avoid double taxation issues. .
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