Malaysia Tweaking Tax Breaks to Align With Global Minimum Tax

Malaysia will streamline existing tax incentives and create new non-tax incentives to mitigate the revenue impact of the global minimum tax, Prime Minister Anwar Ibrahim said Friday.

While the global minimum tax will yield new revenue, it also poses a negative risk to the investment climate, Ibrahim said in a speech unveiling the country’s 2025 budget.

Over 140 countries signed onto the Organization for Economic Cooperation and Development’s global minimum tax regime in an October 2021 agreement. The tax aims to create a minimum 15% corporate tax rate around the world as a way to stop countries from competing ...