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Malaysia Corporate Income Tax Guide - Tax Rate

Resident companies in Malaysia are generally taxed at a rate of 24% of their chargeable income. Small and medium enterprises (SMEs) have lower tax rates of 15% for the first RM150,000 of chargeable income, 17% for income between RM150,001 to RM600,000, and 24% for income over RM600,000. To qualify as an SME, a company must have paid-up capital of less than RM2.5 million, not be owned by another company with over RM2.5 million capital, and have gross income under RM50 million. Starting in 2024, SMEs must also have less than 20% ownership by foreign companies or individuals.

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48 views1 page

Malaysia Corporate Income Tax Guide - Tax Rate

Resident companies in Malaysia are generally taxed at a rate of 24% of their chargeable income. Small and medium enterprises (SMEs) have lower tax rates of 15% for the first RM150,000 of chargeable income, 17% for income between RM150,001 to RM600,000, and 24% for income over RM600,000. To qualify as an SME, a company must have paid-up capital of less than RM2.5 million, not be owned by another company with over RM2.5 million capital, and have gross income under RM50 million. Starting in 2024, SMEs must also have less than 20% ownership by foreign companies or individuals.

Uploaded by

Muhammad Syazwan Ahmad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Malaysia Corporate Income Tax Guide

Tax rate
Resident companies are taxed at the rate of 24%.
For small and medium enterprise (SME), the first RM150,000 Chargeable
Income will be tax at 15% , RM150,001 to RM600,000 Chargeable Income will be
tax at 17% and the Chargeable Income above RM600,000 will be tax at 24%.
The SME company means company incorporated in Malaysia with a paid up
capital of ordinary share of not more than RM2.5 million. It must not owned by or
owned a company having paid up capital of more than RM2.5million directly or
indirectly. In addition, it must have a gross income from source or sources
consisting of a business of not exceeding RM50 million.
Effective from YA 2024, to qualify for the reduced tax rate, an additional condition
is imposed in which not more than 20% of the paid-up capital in respect of
ordinary shares / total contribution of capital at the beginning of the basis period
for a YA is directly or indirectly owned / contributed by a company or companies
incorporated outside Malaysia or an individual or individuals who are not
Malaysian citizen.

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