WHILE we do not know when the Covid-19 pandemic will be over, international tax rules continue to evolve. On June 5, 2021, the Group of Seven (G7) finance ministers met mask-to-mask in London, and announced the high-level political agreement on global tax reform. Multinational enterprises (MNE) operating in Malaysia may have lower jurisdictional ETR, say 10%, due to the Malaysian tax holiday, although the headline tax rate here is 24%. She may also need to relook and revise the existing Malaysian tax system, with a view to protecting her tax base. Corporates need to assess how these unprecedented international tax reform would affect them from the supply chain, compliance and global effective tax rate perspective.
