Tax

Tax Alert July (4) 2018

Malaysia’s Commitment in International Tax Standard 

Malaysia’s Participation in Forum of Harmful Tax Practices (FHTP) under the Organization for Economic Cooperation and Development (OECD) Inclusive Framework (IF) – Base Erosion and Profit Shifting (BEPS) Action Plan 5

The Ministry of Finance had announced Malaysia’s commitment and participation in the Forum of Harmful Tax Practices (FHTP) by evaluating certain existing incentives under BEPS Action Plan 5 on 12 June 2018.

FHTP has identified jurisdictions which provide preferential regimes for mobile geographical services activities related to intellectual property (IP) and non-intellectual property (Non-IP). Certain Malaysian incentives such as MSC Malaysia Status, Principal Hub, Biotechnology Industry (BioNexus), Green Technology Services, Treasury Management Centre, Malaysian International Trading Company and Labuan Financial Services have been identified for FHTP evaluation.

Amendments to the legislation related to the selected IP and non-IP incentives are to be gazetted latest by 31 December 2018.

Kindly click here to read the full content of the said announcement.

 

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