Malaysia Company Incorporation with Paul Hype Page
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Corporate Tax in Malaysia

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Corporate Tax
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Corporate Tax Services in Malaysia2021-06-18T13:29:22+08:00

Overview of Corporate Tax System in Malaysia

In Malaysia, companies are taxed based on the territorial tax system. A territorial tax system imposes taxes on individuals and businesses on any income earned within a particular country’s borders. Hence, companies in Malaysia are assessable on any income accrued in or derived from Malaysia.

Income derived from abroad and remitted in Malaysia is tax-exempt unless the company is in the banking, insurance, air transport, or sea transport industries. Domestic dividends are also tax-exempt.

Tax Incentives

Resident SMEs are taxed at 17% on the first RM 600,000 worth of taxable income and at 24% on subsequent earnings.

Popular tax credits and incentives include companies with MSC Status enjoying tax exemptions of up to 5 years.

Malaysia Corporate Tax Rates

The flat corporate tax rate is 24% in Malaysia.

The answer to your corporate tax questions

Malaysia has many tax compliance matters that every Business Owner need to take note of and below here are some tips to keep you moving and achieving your business goals

What is SST? What does it contains?2021-06-04T23:53:36+08:00

Sales and Service Tax (SST) is made up of two separate taxes. There is no VAT and GST has been abolished.

Sales tax is imposed by a registered seller on all goods unless exempted by the Minister of Finance. The standard rates are 5% or 10% depending on class of goods.

Service tax is levied at 6%.

Are capital gains taxed in Malaysia?2021-06-07T18:57:20+08:00

Capital Gains are not taxed in Malaysia other than gains which will be taxed under the real property gains tax.

What is the taxable period for Malaysia2021-06-07T21:25:53+08:00

The Malaysian Tax Year is the calendar year; 1 Jan to 31 December.

What are the tax exemptions for expatriates?2021-06-07T21:25:00+08:00

An expatriate may qualify for tax exemptions if his/her employment period is less than 60 days (about 2 months) or if he/she is not a tax resident in Malaysia. As an expatriate, you are considered a tax resident if you are going to live or has lived in Malaysia for 182 days (about 6 months) or longer.

What is a ‘beneficial owner’ for tax purposes?