More specific tax incentives could be introduced in Budget 2018, aimed at moving businesses up the value chain, said KPMG Tax Services Executive Director, Nicholas Crist.
He said Malaysia’s tax legislation contained a significant number of tax incentives to attract investments into the country, noting that over the recent years, policymakers had been moving away from broad-based tax incentives and introducing more specific incentives.
“Given that there are so many incentives, it would be appropriate to consider whether the time is right for some form of consolidation to make the system simpler to understand,” he told Bernama in an email interview.
Crist said the government had moved in this direction with the introduction of the Principal Hub tax incentive, which replaced three earlier tax incentives for Operational Headquarters, International Procurement Centre and Regional Distribution Centre.
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