MALAYSIA AWAITS OECD ON NEW INDUSTRIES TAXATION

PUTRAJAYA, March 1 (NNN-BERNAMA) Malaysia is looking forward to the introduction of a new tax system for new industries in Organisation for Economic Co-operation and Development (OECD) member countries, which is applicable to the country, said Second Finance Minister Johari Abdul Ghani.

He said Malaysia was eager to learn the tax mechanism for new industries, including for short-stay leasing platform Airbnb and e-hailing services such as Grabcar and Uber.

It is (a) very complex issue, because at this moment, I think even OECD countries didn’t find the method yet on how to tax them… we’ll learn from them and wait for the mechanism that they have and then we will compare, he told reporters after launching the Revenue Day 2018.

Johari said the mechanism has to be right as it is very complex, not only on the method of the taxation, but also as it has something to do with the international law.

Meanwhile, he advised tax agents and advisers to engage with Inland Revenue Board (IRB) officers to enable them to do their job effectively.

They want to look good to their clients. That’s why I suggest (that) any tax agents or advisers who want to do their job effectively for their clients they can straight away engage with IRB.

So, IRB will advice them accordingly. Hence, in the future if anybody want to backdate (tax credits) against their clients they have all (the) supporting documents to show as advised by IRB.

I hope IRB can do more engagements with all tax payers and stakeholders to explain to them the right tax processes and in the next three to four years, I think we can get the best out of our tax system, he added.

On the 1Malaysia People’s Aid (BR1M), Johari said those who failed in their previous applications could make their appeal starting April. NNN-BERNAMA

Source: NAM News Network