tax assessment in malaysia
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ADB official terms.
TAX REFORM AND THE SELF ASSESSMENT
1.
INTRODUCTION
1.1
BACKGROUND
Malaysia is physically situated in the centre of Southeast Asia, with Thailand in the north, Singapore in the south, Philippines in the east and Indonesia in the west. It covers an area of about 329,758 square kilometres consisting of
Peninsula Malaysia and the states of Sabah, Sarawak and the Federal Territory of Labuan in the north-western coastal area of Borneo Island. The two regions are separated by about 531.1 kilometres of the South China Sea. The climate is equatorial and is subjected to maritime influence with an average temperature between 21 to 32 degrees Celsius throughout the year.
Malaysia’s population is estimated at 26.13 million in the Year 2005 which consists mainly of the Malays, Chinese, Indian and other races. One of the unique features of Malaysia is its multiracial population, which practices various religions such as Islam, Buddhism, Taoism, Hinduism and Christianity. The
Official language used is Malay or Bahasa Malaysia. However the people are free to use their mother tongue and other languages. English as the second language is widely used in business.
1.2
TAXES – CONTRIBUTION TO THE ECONOMY
Tax revenue is a main source of income for Malaysia. The Malaysian government generally imposes two broad type of taxes, namely the direct and the indirect taxes. Direct taxes contributed about 46 percent of the nation’s total revenue. Indirect taxes, which is administered by the Royal Customs and Excise
Department
ADB official terms.
TAX REFORM AND THE SELF ASSESSMENT
1.
INTRODUCTION
1.1
BACKGROUND
Malaysia is physically situated in the centre of Southeast Asia, with Thailand in the north, Singapore in the south, Philippines in the east and Indonesia in the west. It covers an area of about 329,758 square kilometres consisting of
Peninsula Malaysia and the states of Sabah, Sarawak and the Federal Territory of Labuan in the north-western coastal area of Borneo Island. The two regions are separated by about 531.1 kilometres of the South China Sea. The climate is equatorial and is subjected to maritime influence with an average temperature between 21 to 32 degrees Celsius throughout the year.
Malaysia’s population is estimated at 26.13 million in the Year 2005 which consists mainly of the Malays, Chinese, Indian and other races. One of the unique features of Malaysia is its multiracial population, which practices various religions such as Islam, Buddhism, Taoism, Hinduism and Christianity. The
Official language used is Malay or Bahasa Malaysia. However the people are free to use their mother tongue and other languages. English as the second language is widely used in business.
1.2
TAXES – CONTRIBUTION TO THE ECONOMY
Tax revenue is a main source of income for Malaysia. The Malaysian government generally imposes two broad type of taxes, namely the direct and the indirect taxes. Direct taxes contributed about 46 percent of the nation’s total revenue. Indirect taxes, which is administered by the Royal Customs and Excise
Department