KUALA LUMPUR: Multinational corporations (MNCs) are knocking on the door of Asean countries' treasury for grants and tax rebates to circumvent the Global Mininum Tax (GMT).
Hence, there is an urgent need for Asean countries to work on an agreement to prevent this, Deputy Investment, Trade and Industry Minister Liew Chin Tong said.
"There are multinationals who are asking different governments to give rebates or cash grants so that they continue to enjoy whatever GMT they have to pay, in order to circumvent the GMT.
"This shouldn't happen and we should be working together. We should talk to each other so that we all resist this pressure to give rebate or cash grant in order for multinationals to enjoy the same tax holiday," he told reporters at the Asean Economic Opinion Leaders Conference 2025 here today.
GMT, arguably the largest tax reform in history, will see large MNCs pay a minimum tax of 15 per cent in every country in which they operate.
Liew reiterated that Asean must unite and tell the multinationals that it needs to collect these taxes for the greater good of its people.
It is also for Asean to emerge as a middle class society, which in turn will be a huge market for all, including the multinationals.
"Also, we need to ensure that when we develop our economy, we are protecting the climate and the environment together.
"There should be no race to the bottom among us. I have high hopes on Asean coming together as a supply chain, as a middle power and as a prosperous middle class society thus an important market," he said.