Removal of foreign source income tax exemption will not discourage FDI

The proposed removal of tax exemption on incomes derived from foreign sources as announced under Budget 2022 should not be taken as a negative move that could discourage foreign direct investments (FDI), said Finance Minister Tengku Zafrul Abdul Aziz.

He said as an open market economy, the attractiveness of the investment ecosystem is not only determined by the incentives, but it also depends on the comprehensiveness of the country’s tax system in accordance with the international tax standards.

The finance minister said this will ensure that the right parties...