MALAYSIA TAXATION

Resident company

Company with paid up capital not more than RM2.5 million :
On the first RM 600,000 chargeable income –

17%

On subsequent chargeable income –

24%

Company with paid up capital more than RM2.5 million

 

24%

Non Resident Company / branch

For “non-resident” status for Malaysia Sdn Bhd companies, the corporate tax rate will be a flat rate of 24%. “Non Resident” status is deemed for a company with more than 50% shareholding owned by foreigners.

 

Personal Income Tax

Resident

  • Personal Income tax is payable on the taxable income of residents at the progressive rates from 0% to 30% with effective Year of Assessment 2020.

Non-Resident

  • You are non-resident under Malaysian tax law if you stay less than 182 days in Malaysia in a year, regardless of your citizenship or nationality.

 

Types Of IncomeRate (%)
Business, trade or profession
Employment
Dividends
Rents
28-30

(With Effect From Year Assessment 2016)

30

(With Effect From Year Assessment 2020)

Public Entertainer
Interest
15
Royalty10
Payments for services in connection with the use of property or installation, operation of any plant or machinery purchased from a non-resident
Payments for technical advice, assistance or services rendered in connection with technical management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme
Rent or other payments for the use of any movable property