Topic:

"Covid-19: Insights on Malaysian Tax Impact"

Introduction:

Covid-19 pandemic is constantly evolving global health crisis that is creating a huge range of challenges for individuals and businesses around the world. As governments take unprecedented action to prevent the spread of the virus, individuals and businesses are facing an ever-more complex environment to operate within.

Content:

In the short-to-medium term, we are likely to see continuing uncertainty as to when and how the economy will re-open and what economic recovery will look like. Malaysian Government implementation on tax adjustments, incentives and tax relief during this crisis can be a great help in the industry. By influencing incentives, taxes can affect both supply and demand factors. Reducing tax rate for company relocating to Malaysia for example, can increase largest businesses to invest in the country. Reducing marginal tax rates on business income can cause some companies to invest domestically rather than abroad. Also, 100% tax allowance or the capital investment given by the government for those companies who want to relocate in Malaysia is a great assistance especially for those businesses that struggled in finding capital during this crisis. It is clearly too early to develop advice on tax policies for the longer term, but the debate is starting.

Question:

Any other appropriate evaluation or suggestions for betterment in future.

Reference:

https://www.hlb.global/malaysia-tax-and-financial-measures-associated-with-covid-19/