Kuala lumpur: 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).
According to BERNAMA News Agency, 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. Piper noted that this trust is a valuable national economic asset, especially as the tax system grows more complex with technologies like e-Invoicing. He explained that this confidence means taxpayers are looking to professionals to help them get compliance right, which ultimately benefits the national revenue base.
The 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 emphasized that accountants serve as "trust intermediaries," bridging the gap between complex tax laws and taxpayers. He highlighted the importance of trusted professionals in ensuring that compliance is accurate and ethical, particularly during tax system reforms like e-Invoicing.
The report also reveals that 60 per cent of Malaysians view the Inland Revenue Board (LHDN) as playing a "balanced" role, providing service and support alongside enforcement. This perception contrasts with many Western or Latin American countries, where tax authorities are often feared primarily as enforcers. Piper attributed this perception to digital engagement, noting that Malaysia's investment in digital tax infrastructure is yielding positive results as compliance becomes easier and digital trust improves.
As Malaysia's government seeks to broaden the tax base, public sentiment has remained resilient. The report states that 51 per cent of respondents agreed that tax revenues are spent for the public good. Piper noted that while there is room for improvement, this level of agreement is significantly higher than in Western Europe, where scepticism about public service delivery often leads to lower net agreement. This suggests that Malaysia's 'fiscal contract'-the understanding that citizens pay tax in exchange for services-remains intact but must be sustained through visible returns on taxpayer investment.
Piper also pointed out that Malaysian taxpayers are willing to support 'green taxes' to drive sustainable outcomes. This provides the government with a mandate to implement environmental, social, and governance-related tax policies, knowing the public is generally supportive of using fiscal tools to address climate change.
Moving forward, Piper advised Malaysian policymakers to capitalize on digital trust and continue treating taxpayers as partners in funding society, rather than merely subjects of taxation. He also recommended leveraging the strong public trust in the accounting profession, alongside greater transparency, to help address corruption concerns.