GLOBAL MINIMUM TAX EXPECTED TO HAVE A POSITIVE IMPACT ON MALAYSIA'S FINANCIAL POSITION - MOF

KUALA LUMPUR, Dec 16 (Bernama) -- The implementation of the 15 per cent Global Minimum Tax (GMT) starting next year is expected to have a positive impact on the country’s financial position, according to the Ministry of Finance (MoF).

Deputy Finance Minister Lim Hui Ying stated that the GMT would apply to multinational companies generating annual global revenues of at least 750 million euros (1 euro=RM4.67) that have a subsidiary operating in another country.

"It will continue to attract new and existing investments from multinational companies, while also assuring investors of the country's plans to implement the GMT," she said during the winding up debate on the Measures for the Collection, Administration, and Enforcement of Tax Bill 2024 in the Dewan Negara today.

The Bill was approved with a majority in favour after its third reading.

The Bill aims to implement amendments to improve the administration of direct and indirect taxes, especially in the areas of tax collection, administration, and enforcement.

Lim also said the government has taken note of the proposal to increase the corporate income tax rate for large companies from 24 per cent to 27 per cent, as was done through the implementation of the Prosperity Tax.

"The government agrees that the increase in the income tax rate, such as the implementation of the Prosperity Tax, had a significant impact on the country’s tax revenue collection.

"However, as previously assured by the government, the Prosperity Tax was a one-off measure aimed at enhancing the country’s capacity to deal with the health crisis," she said.

Meanwhile, the Finance Bill 2024 was approved with a majority in favour after its third reading.

During the winding-up debate on the Bill, Lim emphasised that the rise in medical insurance premiums is due to high medical cost inflation and the higher frequency of treatment usage.

She said the increase in medical insurance premiums and medical cost inflation in Malaysia is caused by various factors involving multiple stakeholders.

"Bank Negara Malaysia (BNM) remains committed to ensuring that the public continues to have access to insurance and takaful products at reasonable rates.

"As informed by the Prime Minister (Datuk Seri Anwar Ibrahim) in the Dewan Rakyat last week, several interim and immediate measures are being reviewed and will be announced by BNM," she said.

The Dewan Negara sitting continues tomorrow.

-- BERNAMA