Regional Comprehensive Economic Partnership (RCEP) - Tax Perspective
- ftcimpact
- Aug 16, 2022
- 1 min read
RCEP entered into force on 1 January 2022
Does RCEP around the corner? Are Malaysian companies ready to embrace it? Tax perspective? Export incentive?
RCEP statistics
•Covers a market amounting to US$25.8 trillion or 30% of the world’s gross domestic product (The Edge Markets 2022)
•Malaysia’s about 56% exports are covered by the countries in RCEP (TheStar 2022)
Why RCEP matters from tax perspective?
•Reduction of tariff barriers by anticipation of up to 90 – 93%.
•Expecting more domestic companies to take up the advantages to export to RCEP members?
•
If export:
•Does your company eligible to enjoy the existing export tax incentives?
Types of export tax incentive:
Malaysian International Trading Company (MITC)
Allowance for increased exports (Normal AIE)
Allowance for increased exports (Enhanced AIE)
Promotion of exports expenditure (PoE)
Comments