KUALA LUMPUR: Malaysia inclusion into EU tax watch list is nothing to panic about, says Tan Hooi Beng, International Tax Leader of Deloitte Malaysia. In a statement on Friday, he explained Malaysia adopts a territorial tax regime, where only Malaysian-sourced income is within the ambit of its tax net. As a result of the foreign source income exemption regimes review, the EU considers Malaysia's territorial sourced tax regime harmful. Deloitte’s observationMalaysia should not be hasty in amending its tax regime and should continue its good practice of consulting relevant stakeholders. Accordingly, while revisions to Malaysia's territorial regime will be of interest, the focus of these taxpayers should remain on Pillar Two.
