Tiong Nam hopes to see a reduction in corporate income tax rate for enhanced regional competitiveness in the Budget 2023, among others.
KUCHING (Oct 4): Tiong Nam Logistics Holdings Bhd (Tiong Nam) hopes to see a reduction in corporate income tax rate for enhanced regional competitiveness in the Budget 2023, among others.
Managing director Ong Yoong Nyock in a statement hoped for reduced corporate income tax below the 24 per cent tax rate currently, which would enhance Malaysia’s competitiveness as an investment destination.
“Currently, our regional peers such as Singapore, Thailand, and Indonesia have more attractive rates of between 17 per cent to 22 per cent,” Ong said.
“A reduction in corporate income tax will allow businesses to retain more profits for reinvestment into operations and innovation, while the increased foreign investments will also benefit the economy as well as Tiong Nam and the logistics industry.”
Tiong Nam also hopes that tax returns on overpaid corporate taxes can be expedited.
“An improvement in the duration involved for processing tax refunds will enhance businesses’ ability to manage their cash flow and allocate capital more efficiently.”
Clearer guidelines on the applicable treatment for taxable goods and services, in particular the logistics and deliveries sector, would also be beneficial to companies such as Tiong Nam.
Ong noted that this will help prevent potential issues of accounting complications and over/under provisions of taxes, and make the whole process more efficient overall.
Additionally, Tiong Nam urged for more tax incentives for business expansions and investments, which would help spur more economic activity and technology advancement.
“This includes additional incentives for investments into sustainable and green assets.
“For instance, Tiong Nam is currently building a new RM200 million mega-warehouse for Mercedes-Benz’s Regional After Sales Logistics Centre, slated to be operational in 2024, which will be rated under the Green Building Index and eligible for green tax incentives.
“Increasing the availability and scope of similar green incentives will draw more interest of domestic and multinational investors, hastening the growth of sustainable investments in the country.”