Predicting a cut in Malaysia’s corporate tax rate by 2019, a tax expert said it would be a catalyst for economic growth, and higher productivity and competitiveness.
Ong Guan Heng, executive director of corporate tax at KPMG Tax Services Sdn Bhd, said many countries have resorted to slashing their corporate tax rate and turning to a more broad-based indirect tax to raise revenue.
“If you ask me, anything below 20% is already good for corporations,” Ong told The Edge Financial Daily.
“Of course, it will be a challenge to the tax authorities, especially if the rate is to be pulled down to 20% or below. While growth must not be stunted by the taxes, the government must also consider the delicate balancing act between the fiscal health and the tax regime,” he added.
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