Corporate Tax In Malaysia

Update Date:2019-5-16 17:08:59 Source:Tannet (Malaysia) Sdn Bhd Views:712

Malaysia Hotline: +603-2141 8908

The corporate tax also can be defined as corporation tax or company tax. Malaysia Corporate tax is imposed on the company's profits or income and the tax rate varies by country. Corporate taxes also affected by operating. In term of  the taxation, both of the Malaysia's resident or Malaysia's non-resident company, all must calculate and submit corporate income tax to the tax bureau.

1. Table of Malaysia Corporate Tax Rate for 2019 as follows:


Taxable Income (RM)

Income tax year ratio of the year 2019 (%)

Malaysia's Residence Company:

The paid-up capital is RM2.5 million or less.

The First RM500,000



Subsequent balance


Do not control or indirectly control another company with paid-up capital exceeding RM2.5 million

More than RM500,000


Not directly or indirectly controlled by another company with paid-up capital exceeding RM2.5 million

Malaysia's Non-Residence Company/Branch Office:


2. Malaysia Company Withholding Tax

Expenditure and expenses for all production and income are allowed to be deducted. However, please note that different types of business and industries have different operating expenses, and IRB may assess based on common industry practices and examine the object of the expenses and their correlation with the income generating activity. Here is list of withholding tax for the Malaysia Company:

a)      Employee salary, allowance, provident fund, social security

b)      Business lease

c)      Commercial insurance

d)      Utility fee, network fee

e)      Promotional gifts and samples

f)       Interest

g)      Donation

h)      Fined

i)       Medical and dental benefits

j)       Visa and business registration

k)      Retirement gratuities and pensions

l)       Death consumption, etc.

3. Year of the Taxation for Malaysia Company

The taxpayer will pay taxes based on the company's fiscal year.

4. The Fined Company

If the tax is not levied before the deadline, a fine of 10% will be imposed on the unpaid amount. If the taxes payable and the fines are not fulfilled within 60 days of the due date, an additional 5% fine will be imposed on the unpaid taxes and fines.

As long as the regulations of the tax bureau are complied with, the company will not impose fines on the company due to late filing of tax returns or late tax payment. Although the company income tax calculation is the same, the withholding tax and some details of each company are different. We will deduct legal taxes based on the type of company and allow each company to pay a reasonable income tax.

For more details on tax calculations for corporate income tax, please contact Tannet Malaysia. Tannet Malaysia can handle and help you because Tannet Malaysia is familiar with tax and other matters of the Tax Bureau and can provide you with a practical solution. For further enquiries, please feel free to call the Tannet Service Hotline at 603-2141 8908 or email Malaysia Company Address: Unit 6.06, Level 6, Amoda 22, Jalan Imbi 55100 Kuala Lumpur.

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