Global Minimum Tax (GMT), also known as the Global Minimum Effective Tax Rate (ETR), is a policy agreed upon by over 140 countries under the OECD Inclusive Framework. The purpose of this policy is to ensure that multinational enterprises (MNEs) with consolidated revenues above EUR 750 million pay a minimum tax rate of 15% on their income earned in low-tax jurisdictions. This initiative addresses the challenges posed by the digital economy.
Effective from financial years starting on or after 1 January 2025, Malaysia has incorporated the provisions of the GloBE (Global Anti-Base Erosion) rules, including the Qualified Domestic Top-up Tax (QDTT), into its tax laws, such as the Income Tax Act 1967, Petroleum (Income Tax) Act 1967, and the Labuan Business Activity Tax Act 1990. These provisions mirror the OECD Model Rules and consist of:
- A Multinational Top-up Tax through the Income Inclusion Rule and QDTT for in-scope MNEs starting from 1 January 2025.
- A substance-based income exclusion amount to exempt certain top-up taxes.
- A minimum tax rate set at 15%.
To cushion the effects of the GMT,马来西亚政府 is considering streamlining existing tax incentives, introducing new non-tax incentives, and evaluating the feasibility of strategic investment tax credits. These measures aim to balance the implementation of the GMT while maintaining the competitiveness of the country's business environment.
