'Red tape mars Malaysia's attractive tax incentives'
Red tape and delays mar Malaysia's otherwise attractive tax incentives, according to PricewaterhouseCooper (PWC) Taxation Services.
Red tape and delays mar Malaysia's otherwise attractive tax incentives, according to PricewaterhouseCooper (PWC) Taxation Services.
Its senior executive Jennifer Chang warned that while we continue to stumble over implementation woes, other nations once way behind us - like Singapore - are playing catch up, and copying our tax incentives.
"For example, the application process - it looks good on paper but when you apply, it takes a long time," she told the audience at a session dubbed, ‘A SWOT analysis of Malaysia: Taking a realistic view of the country’.
She related that some of their clients have had to wait for three years just to get approval for tax exemption requests, even though the quantum is low.
Chang opined that we must make sure our tax incentives application and implementation process are hassle-free, or risk turning away investors.
'Make it faster and quicker'
The PWC executive also said that once incentives have been granted, tax authorities should also not conduct audits on investing firms, as well as reverse the tax incentives already given.
Speaking at the session which is part of the CEO Forum 2013 held in Kuala Lumpur today, Chang noted that Malaysia is still among the top 15 of the easiest places in the world to pay taxes, and is number 10 when it comes to investment incentives.
She argues that while we are not a tax haven and cannot rank with countries that lower their tax rates to attract foreign money, Malaysia still has a relatively low effective tax rate, with incentives lessening the taxation impacts.
However, she claimed that other countries are “actively copying us”.
“We cannot stand still, but must act and reinvent our successful model to continue being competitive, as competing countries - most notably our neighbours - are beginning to catch up, if not outstrip us outright,” Chang stressed.
Editor’s note: In a letter sent to Malaysiakini , Jennifer Chang alleged she was “misquoted” and her statements taken out of context. Malaysiakini has denied this and has addressed her claims.
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