![]() On the proposed 15 per cent Global Minimum Tax (GMT), Chow expected relevant measures would be announced in Budget 2023, but implementation would take place no earlier than 2024 to provide time for deliberation and feedback from stakeholders before it comes into operation.Īccording to him, GMT is in line with international tax developments to combat revenue leakages and profit-shifting activities, and will allow Malaysia the first right to charge top-up taxes on revenue from entities located in Malaysia that are paying taxes below the threshold of 15 per cent. ![]() "A transitional framework should also be considered,” he said. "Feedback would also need to be sought from stakeholders so that this matter is duly deliberated before the authorities decide on the implementation. Newly-minted Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, who succeeded Ismail following the 15th general election on Nov 19, 2022, will present a revised Budget 2023 on Feb 24, 2023.Īsked if a carbon tax would be introduced in the upcoming budget, Chow shrugged off the possibility, saying the relevant government authorities need to study the carbon pricing mechanism and set an appropriate carbon tax rate to drive the national climate goals of achieving net-zero emissions. Under Budget 2023 tabled on Oct 7, 2022, by the former government, the income tax for the chargeable income band of between RM50,001 to RM100,000 was reduced by two ppt for the year of assessment 2023 - from 13 per cent to 11 per cent for the RM50,001-RM70,000 band, and from 21 per cent to 19 per cent for the RM70,001-RM100,000 band.įormer prime minister Datuk Seri Ismail Sabri Yaakob’s administration also raised the tax for those in the chargeable income bracket of between RM250,001 and RM400,000 from 24.5 per cent to 25 per cent. "As such, I would expect the respective tax cut of two ppt and tax increase of 0.5 ppt to be maintained,” he told Bernama via email recently. "Helping to combat the cost of living and improving the country’s fiscal position are the important focus of the current government. President Chow Chee Yen said the purpose of the tax reduction is to help the M40 with the rising cost of living and increase their disposable income, while the tax increase on the T20 is to alleviate the reduction in revenue collection caused by the tax cut. KUALA LUMPUR: The Chartered Tax Institute of Malaysia (CTIM) does not anticipate any new tax to be introduced in the upcoming Budget 2023 but expects the government to maintain the two-percentage point (ppt) income tax cut for the middle-income group (M40) and 0.5-ppt tax rise for the high-income earners (T20) proposed in the previous budget.
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