IRBM able to address revenue leakages under bill amendments

KUALA LUMPUR: The Inland Revenue Board Malaysia (IRBM) is able to address the issues of revenue leakages through the introduction of a new provision under the amendments in the Finance Bill 2021, said the Finance Ministry (MoF) today.

The ministry, in its 2023 Pre-Budget Statement, said the amendments empowered IRBM to request for a taxpayer's bank account information from financial institutions for the purpose of making an application to the court for a garnishee order.

"Also, certain payments made to resident agents, dealers or distributors who are individuals and who have received more than RM100,000 will be subject to a 2.0 per cent withholding tax," it added.

The MoF said, under Budget 2022, several initiatives were introduced to curb elements of revenue leakage or harmful practices that relate to cross-border tax evasion and double non-taxation.

These initiatives included the removal of the tax exemption on foreign-source income received in Malaysia by Malaysian tax residents, the introduction of a Tax Compliance Certificate as a pre-condition for tenderers to participate in government procurement and the implementation of the Tax Identification Number.

-- BERNAMA