Malaysia has committed to amend or abolish its harmful foreign-source income exemption regime in order to avoid being listed as non-cooperative by the EU. The 5 October 2021 update to the non-cooperative list included the addition of Malaysia to the grey list (annex II), which contains jurisdictions that have committed to taking certain actions to address EU concerns and avoid being listed as non-cooperative (annex I). The harmful foreign-source income exemption at issue is contained in paragraph 28 of Schedule 6 of the Income Tax Act 1967, which provides a tax exemption on the income of any person, other than...