MALAYSIA CORPORATE TAX

Expand your Singapore business into Malaysia and enjoy the tax benefits. Find out more about corporate tax in Malaysia and how you can tap on the Market Readiness Assistance (MRA) grant to set up your Malaysian entity today.

Malaysia Corporate Tax Business Expansion2024-03-14T15:25:32+08:00

CORPORATE TAX IN MALAYSIA

Malaysia has one of the lowest corporate tax rate of 24%, attracting many businesses and entrepreneurs to set up a company in the country.

Here is a checklist of documents required to file your corporate tax in Malaysia.

Malaysia corporate tax specialists

Download the full Malaysia corporate tax checklist.

MALAYSIA CORPORATE TAX SYSTEM

Companies are taxed based on a territorial tax system in Malaysia. With this system, taxes are imposed on individuals and businesses on any income earned within the country’s borders. Malaysian companies are assessable on any income accrued in or derived from Malaysia.

Malaysia corporate tax rate

MALAYSIA TAX INCENTIVES FOR BUSINESSES

To encourage more investors and businesses to set up in Malaysia, the government has initiated a few tax incentives. Singapore companies expanding into Malaysia can enjoy these tax benefits, including the MRA grant.

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BUSINESS EXPANSION INTO MALAYSIA

Aside from the corporate tax, some other reasons why Singapore business owners are looking for business expansion into Malaysia are listed below.

  • 300% reduction in operational cost
  • 6X more consumers than Singapore
  • 0% corporate tax rate in Malaysia for selected industries
  • S$100,000 funding by Singapore government via the MRA grant

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CHECK YOUR TAX PAYABLE

Enter your chargeable income to generate the net tax payable for local SMEs and non-local company or branch.

Local SME
First RM 600K (17%)
Remaining amount (24%)
Net tax payable
Effective tax rate
Non-Local Company/Branch
Amount above RM 0 (24%)
Net tax payable
Effective tax rate

OUR MALAYSIA CORPORATE TAX SERVICES

We’re specialised in handling corporate taxation in Malaysia, ensuring that your tax compliance meets the standards required for corporate tax submissions and tax filings, while advising you on tax exemptions and incentives.

Types of corporate tax services
  • Keeping you updated with Malaysia’s corporate tax regulations and compliance requirements
  • Monitoring the statutory deadlines and meet the compliance filing deadlines
  • Preparation and filing of your estimated chargeable income
  • Preparation and reviewing tax provision calculations
  • Oversees the process of reviewing Form B and Form P

CORPORATE TAX FAQs

Based on our experiences with clients, here are the top 5 questions that are frequently asked.

What is SST?2022-07-07T11:45:36+08:00

Sales and Service Tax (SST) compromises of two taxes – sales tax and service tax. The 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?2022-07-07T11:45:16+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 in Malaysia?2022-07-07T11:45:04+08:00

The Malaysian tax year is the calendar year – 1 January to 31 December.

How does Malaysia corporate tax rate compare against other countries?2022-07-07T11:44:43+08:00

Most countries have a higher corporate tax rate than that of Malaysia. For example, in China, India, and Pakistan, the corporate tax rate is at 25%, 34.61%, and 31% respectively, as compared to 24% in Malaysia.

How does tax administration in Malaysia work?2022-07-07T11:44:21+08:00

Tax administration in Malaysia is based on the concepts of  paying, self-assessing, and filing. Monthly salary deductions are made for individuals with an employment income; they may also be made through installments for individuals with a business income. 

Taxpayers are to compute their own taxes and submit the ITRF to the IRB. The ITRF is to be accompanied by the payment for the balance of the income tax to be paid so as to meet any shortfall in the monthly payments or a claim for repayment if there is an overpayment.

Contact Malaysia tax specialists

Got other questions on Malaysia corporate tax?

Drop us a message through our contact form.

MALAYSIA CORPORATE TAX ARTICLES

Get insights on the Malaysia corporate tax landscape so you understand the exemptions that you can have for your business and more.

THE GOOD WORDS

Hear directly from our clients to learn more about the good work done.

REGIONAL PRESENCE, GLOBAL REACH

With strong presence in Malaysia, and other key Asian markets, we’re effective in planning and advising corporate taxation.

Paul Hype Page & Co. regional offices

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our Malaysia corporate taxation services today.

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