Malaysia to implement two-pillar approach in taxation

Malaysia’s Finance Minister Zafrul Abdul Aziz announced that the government has agreed to implement the “two-pillar approach” in taxation in 2024 to create a competitive environment for both foreign and domestic direct investment. The approach, which also prevents cross-border tax evasion, is being studied at present. The two-pillar approach refers to the Base Erosion and Profit Shifting (BEPS) 2.0 initiative spearheaded by the Organisation for Economic Co-operation and Development (OECD) and G20. the implementation is consistent with the OECD report on digital identification of taxpayers, Zafrul said.