Malaysia will make further reductions in its corporate tax rate, one of the highest in Southeast Asia. "In my view, the best system of corporate tax is to have low rates of tax with as few reliefs and exemptions as possible so as to reduce leakages in the system," Finance Minister Daim Zainuddin told a seminar in Kuala Lumpur.
He said the country could lower taxes without reducing state revenues by eliminating some tax exemptions. He did not elaborate.
Malaysia's corporate tax rate can reach 48% of company earnings. Daim said in October that a 3% tax on earnings of companies making a profit of at least $800,000 (2 million ringgit) would be abolished next year.