The government will set up a collaborative working group of experts to provide input and gather technical views from the industry in addressing mounting concerns among business communities pertaining to the application of withholding tax.

Second Finance Minister, Datuk Seri Johari Abdul Ghani, said currently this working group, comprising representatives from government, associations and key accounting firms, was developing a set of guidelines to provide clarity regarding the implementation and technical aspect of withholding tax.

"Among others, the guidelines will help to amplify the policy intention of the law, which is to develop our domestic services sector, build more local talents and ensure that cross border activities are not detrimental to the development of our domestic services," he said at the National Tax Conference 2017 here Tuesday.

He said the government wanted to create a culture among companies to always use the services provided by Malaysian entities as a starting point.

Johari said the government would also consider providing exemption on a case-by-case basis, as various business chambers and company representatives sought for tax exemptions.

-- BERNAMA