TITLE : TAX ISSUES: A REVIEW AND DISCUSSION OF TAX POLICY.

 
PREFACE                               ix
 
Chapter I MALAYSIA - COMPARABLE TO THE           1
          NEIGHBOURS
 
    * The tax regime or system             3
    * World trends in tax rates            4
    * Malaysian tax strategies for economic development    4
    * Concept of minimum tax     6
    * Malaysian investment incentives - more developed    6
      that most Asean countries
 
Chapter II HOW TAX REFORMS CAN SPUR THE ECONOMY  9
 
    * Purpose and direction 11
    * International trends  11
    * National trends  13
 
Chapter III  BETTER TAX MANAGEMENT CAN LEAD TO     15
             LOWER RATES
 
    * Major characteristics of tax system 17
    * Overall characteristics             17
       - Proportion of direct taxes to indirect taxes
       - Ratio of taxes to GNP              17
       - Number of salary earners vs. sole proprietorships   18
         and partners
       - Company taxation (Non-Petroleum)  20
 
Chapter IV CUT IN REVENUE FROM INDIRECT TAXES    23
 
    * Sales tax                         25
    * Service tax                       25
       - Export/Import duty and surtax         26
       - Export duties                   26
       - Import duties                   26
    * Co-operatives                     27
    * State economic corporations       27
 
Chapter V  TAX SYSTEM REVIEW SHOULD BE A         29
           CO-ORDINATED EXERCISE
 
    * Proposals for tax reform   31
    * Direct taxes     31
        - Overview of tax reform             31
        - Review of corporate taxation       32
 
Chapter VI IMPROVE THE SYSTEM AND UPGRADE        37
           EFFICIENCY
 
    * Corporate tax - administrative reforms  39
        - Imputation system - tax credits only upon      39
          payment of tax
        - Self assessment and paying taxes six months from         40
          commencement date
        - Investment incentives - exempt accounts        41
        - The remittance basis                  41
        - Tin and timber profit taxes           42
 
Chapter VII   SOME SUGGESTIONS FOR OVERHAULING THE  45
              TAX SYSTEM
 
    * Reform of personal taxation          47
        - Reduction in'tax rates                47
        - Administrative aspects                49
        - Employees dequction scheme      49
        - Self assessment for individuals 50
        - Simplifying tax assessments     50
 
Chapter VIII  INDIRECT TAXATION HAS TO BE REFORMED  53
 
    * Introduction                      55
    * Reform of sales tax               55
        - Tax rates                             56
        - Parent and subsidiary companies: sales tax to be         57
          at retail level
        - Essential products - automatic exemption       58
        - VAT (value added tax)                 58
        - Tax audit: income tax and sales tax       58
        - Exemption                          59
        - Raw materials/ ingredients - finished products      59
    * Reform of service tax                59
        - Tax rates                         59
        - Exemption - $500,000              59
        - Administration                    60
        - VAT - value added tax             60
        - Tax audit - income tax and service tax   60
 
Chapter IX   GIVING THE NATIONAL CAR PRIDE OF PLACE   61
 
    * Introduction                        63
    * Road tax                            63
    * Import duties on CKD cars           65
 
Chapter X   SHARE TRANSFER TAX - AREAS THAT       67
            NEED REFORM
 
    * Introduction                         69
        - Tax rate                           70
        - Land in industrial estates: discrimination     70
        - Excessive to normal requirements   71
        - Companies listed on a stock exchange  71
        - Minimum $1 million                 72