KUALA LUMPUR (Oct 30): Malaysia's tax regulations are evolving to keep pace with international tax and digital business trends, with the country being poised to become a prime regional hub for multinational corporations, said Ernst & Young Tax Consultants Sdn Bhd (EY).
This, said its Asean tax managing partner Yeo Eng Ping, is boosted by the "rapid transformation of both Malaysia's public transportation and digital connectivity".
According to EY in its Take 5: Budget 2018 Malaysia report, tax is a key consideration in designing a business' strategy for a digital world, as a tax-sensitive business strategy drives innovation, empower customer interactions, redesign operations and protect digital assets.
In the report, EY cited three key disruptors to a company's tax function: digital speed to global market (tax teams must keep up with their own company's rapidly digitising and globalising business lines and operations), smart tax (digitally advanced smart tax is automating the collection process and requires increasingly deeper analysis of massive amounts of data) and digital tax authorities (governments are digitalising their tax administrations and updating tax policy to tackle a virtual and borderless business world).
"The focus on the digital tax function reflects the reality of today's increasingly digital and borderless global landscape. Companies need to develop the right competencies and capabilities as they transform their tax function to be robust and adaptive to new technologies, regulations and business models," said Amarjeet Singh, EY's partner and Malaysia tax leader.
Meanwhile, EY's Malaysia managing partner Datuk Abdul Rauf Rashid said for Malaysia to be a well-developed economy with socioeconomic balance, the country needs to "continue improving her talent base and grow to be a relevant player in the fast-expanding global digital economy".