MP SPEAKS | Withdrawal of foreign-sourced income tax exemption can backfire

MP SPEAKS | Later today, the Finance Bill 2021 will be debated in Parliament. This bill proposed amendments to a number of financial acts, including the Income Tax Act 1967, where the tax exemption on foreign-sourced Income which has been in place since 2004, will be withdrawn.

While we understand and support the need for the federal government to increase its revenue resources, especially during these challenging economic times, the methods by which this revenue is raised must be fair, sustainable and not harmful to the economy in the long run.

Unfortunately, the decision to withdraw this tax exemption may end up being a counterproductive move as the revenue it raises from Malaysia companies and individuals may not be significant and more importantly...