Public Trust In Tax 2025: Asia And Beyond - Malaysia's Global Standing

By Karina Imran

KUALA LUMPUR, Dec 18 (Bernama) -- Malaysia has emerged as a notable global performer in public trust in the tax system, underpinned by exceptionally strong confidence in the accounting profession and steady gains from digitalisation, according to findings by the Association of Chartered Certified Accountants (ACCA).  

ACCA Head of Tax and Business Law Jason Piper, a global author of the Public Trust in Tax 2025: Asia and Beyond, said the most striking result for Malaysia is the level of trust placed in professional accountants, the highest recorded worldwide at 79 per cent.

He described accountants in Malaysia as "anchors of trust" within the tax ecosystem. 

"As the tax system becomes more complex with e-Invoicing, this trust is a national economic asset. 

"It means taxpayers are looking to professionals to help them get compliance right, which ultimately benefits the national revenue base," he told Bernama.

Public Trust in Tax 2025: Asia and Beyond is a major new report by ACCA, International Federation of Accountants (IFAC), Chartered Accountants Australia and New Zealand (CA ANZ) and the Organisation for Economic Co-operation and Development (OECD).

Piper noted that accountants serve as "trust intermediaries", as they are the most trusted source of information, bridging the gap between complex tax laws and taxpayers.

"For a tax system to function efficiently, especially during reforms like e-Invoicing, taxpayers need that trusted layer of professionals to ensure compliance is accurate and ethical," he said.

According to the findings, 60 per cent of Malaysians view the Inland Revenue Board (LHDN) as playing a "balanced" role, providing service and support alongside enforcement. This contrasts with many Western or Latin American countries, where tax authorities are often feared primarily as enforcers.

This, he said, is largely driven by digital engagement, noting that Malaysia’s investment in digital tax infrastructure is paying off as compliance becomes easier and digital trust improves.

As the government looks to broaden the tax base, Malaysian sentiment has remained resilient, supported by 51 per cent of respondents agreeing that tax revenues are spent for the public good.

"While this leaves room for improvement, it is significantly higher than in Western Europe, where net agreement often dips much lower due to scepticism about public service delivery.

"This suggests the 'fiscal contract' — the deal where citizens pay tax in exchange for services — remains intact in Malaysia, but it must be protected through visible returns on investment for the taxpayer," he said. 

At the same time, Piper said Malaysian taxpayers are willing to support 'green taxes' to drive sustainable outcomes.

This gives the government a mandate to be bold with environmental, social and governance-related tax policies, knowing the public is generally supportive of using fiscal tools to combat climate change, he added. 

Moving forward, Piper said Malaysian policymakers should capitalise on digital trust and continue to treat taxpayers as partners in funding society, rather than merely subjects of taxation.

They should also leverage the strong public trust in the accounting profession, alongside greater transparency, to help address corruption concerns.

-- BERNAMA