Malaysia to retain corporate tax rate until GST introduction: KPMG
KUALA LUMPUR, Oct 20 (Bernama) -- Despite the average global corporate tax rate falling to 22.96% last year from 29.03% in 2000, Malaysia is expected to maintain its current rate until the introduction of the goods and services tax (GST) is firmly under way.
Since 2009, Malaysia's corporate tax rate has stood at 25%.
KPMG Malaysia head of tax Khoo Chin Guan said based on this year's survey, the decrease in direct taxes and increases in indirect taxes have become the established approach to revenue raising in the global arena.
"Governments are increasing their reliance on GST/VAT (value added tax) systems for economically sound reasons," he said in a statement Thursday.
According to KPMG International, a global network of professional firms providing audit, tax and advisory services, the world's average indirect tax rate has been stable for the past three years, hovering at around 15.41%.
Khoo said compared to income taxes, GST or VAT collections are less adversely affected by economic ups and downs, their revenue bases are less mobile, and their real-time collection provides a steadier revenue stream.
However, the Malaysian government is still studying the impact on businesses and the rakyat of introducing GST into the economy, he said.
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