WHILE we do not know when the Covid-19 pandemic will be over, international tax rules continue to evolve. On June 5, 2021, the Group of Seven (G7) finance ministers met mask-to-mask in London, and announced the high-level political agreement on global tax reform. Multinational enterprises (MNE) operating in Malaysia may have lower jurisdictional ETR, say 10%, due to the Malaysian tax holiday, although the headline tax rate here is 24%. She may also need to relook and revise the existing Malaysian tax system, with a view to protecting her tax base. Corporates need to assess how these unprecedented international tax reform would affect them from the supply chain, compliance and global effective tax rate perspective.

Source: The Star June 14, 2021 00:38 UTC