Removal of the tax exemption on foreign source income will not discourage FDI

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KUALA LUMPUR: The proposed removal of the tax exemption on income from foreign sources as announced in the 2022 budget should not be seen as a negative measure that could discourage foreign direct investment (FDI), said the finance minister Tengku Datuk Seri Zafrul Abdul Aziz(Photo).

He said that as an open market economy, the attractiveness of the investment ecosystem is not only determined by incentives, but also depends on the completeness of the country’s tax system in accordance with tax standards. international.

The finance minister said this would ensure the right parts are taxed, as well as a fair distribution between jurisdictions,

He added that this will also put an end to tax evasion and tax evasion.

“We are sending the message that we do not tolerate such practices,” he said today during the Invest Malaysia 2021 Virtual Round 2.

Tengku Zafrul pointed out that other countries such as Hong Kong and Singapore have removed or amended their laws in order to comply with international standards.

As part of the 2022 budget, the government has proposed to impose a tax on income from foreign sources and collected in Malaysia from January 1, 2022.Bernama


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