Tax Rates for Company

Company tax applies to all those companies that are registered in Malaysia. It is applicable on chargeable income that a company derives from its business while operating in Malaysia. Company tax is liable to be paid by the resident company (Sendirian Berhad (Sdn Bhd) and Berhad).

Such companies must be receiving gains or profits while running their businesses in Malaysia. These include:

• Public and Private limited companies
• Business trust
• Partnership
• Limited liability partnership
• A branch of a foreign corporation

Following table will give you an idea about company tax computation in Malaysia.

Paid-up capital up to RM2.5 million or less	Rate (%)
On the first RM600,000 chargeable income	17
On the chargeable income exceeding RM600,000	24
Paid-up capital up to RM2.5 million or less	Rate (%)
Flat rate	24

Notes:

Taxable income for company tax comprises all types of earnings that are usually derived from different business ventures operating in Malaysia. These earnings include profits/gains from business, rents, royalties, premiums, or any other types of earning.

Nevertheless, dividends received by company are not taxable, as all corporations follow the Single-Tier System (STS). Similarly, the capital gain isn’t taxable; however, there are a few exemptions to this rule. These include those capital gains that are obtained through the disposal of a property owned by a corporation.

folder_open   Information on Taxes in Malaysia