Executive director of Ernst & Young Tax Consultants Sdn. Bhd., Yeo Eng Ping wrote a great article about the new budget 2008 promoting conducive investment climate. Several points explained include:
1. Corporate tax cut – tax rate will be further reduced to 25% in the year of assessment (YA)2009
2. Single-tier income tax system – Malaysian companies are no longer required to deduct tax on dividends paid to shareholders.
3. Economic development regions – Prime Minister announced the upcoming launches of the East Coast Economic Region, the Sabah Corridor and the Sarawak Corridor.
