Malaysia Taxation
Service
Leveraging our expertise in Malaysian tax, we aim to offer comprehensive, one-stop tax services to our clients.
Corporate Income Tax in Malaysia
Malaysia’s economy embraces free enterprise, welcoming foreign ownership without restrictions. It supports profit repatriation and capital importation. Malaysia offers a competitive corporate tax rate, ranging from 15% to 24%. Notably, capital gains remain tax-free.
A company, whether resident or not, is subject to taxation on income earned or received within Malaysia. Residency hinges on the control and management of a company’s affairs within the country.
Our services:
- Registration of a tax file
- Filing of tax estimation (CP204)
- Preparation of tax computation, including analysis of accounts and preparation of income tax schedules
- Filing of tax returns
Personal income tax in Malaysia
Individuals are subject to individual tax in Malaysia for income generated within the country or received within its borders from foreign sources. Resident individuals can remit foreign income to Malaysia tax-free, while non-residents are only taxed on Malaysian earnings. To maximize tax savings, consider seeking advice from tax experts, as tax laws offer potential savings and incentives with intricate implications.
Tax rates vary based on an individual’s residency. Generally, an individual residing in Malaysia for a minimum of 182 days in a calendar year is considered a tax resident. Resident individuals pay taxes on chargeable income at graduated rates ranging from 0% to 30%, starting from the year of assessment in 2020.
Our services:
- Registration of a tax file
- Preparation of individual income tax computation
- Filing of tax returns
Sales and Service Tax (SST) in Malaysia
Sales tax is a one-stage tax applied solely at the importer’s or manufacturer’s level in the supply chain. It’s an ad valorem tax with varying rates depending on the group of taxable goods, although petroleum is subject to a distinct, specific rate.
A service tax is imposed on taxable services delivered by any taxable entity in Malaysia during their business operations.
Presently, goods are taxed at rates spanning from 5% to 10%, while services carry a 6% tax rate.
Our taxation services in Malaysia
Our taxation services in Malaysia
- SST registration and deregistration
- Preparation and bimonthly submission of SST reports
Contact us to discuss in detail.
FAQs for Taxation Services in Malaysia
When a company commences its business activities, it must initiate the tax file registration process. Within three months of commencing operations, the company should file an estimate of its tax payable. Installment payments should begin in the sixth month of the basis period following the commencement of operations. Companies are obliged to submit an income tax return (tax return form) within seven months from the closing date of their accounts.
Resident companies in Malaysia with share capital valued at MYR2.5 million or less and gross income up to RM50 million for the relevant assessment year (YA) benefit from preferential tax rates. They are taxed at 15% on the first MYR 150,000 of income, 17% on the next MYR 450,000, and 24% for income beyond that. In contrast, non-resident companies face a flat tax rate of 24%, irrespective of their capital structure.
Premia TNC has the optimal solutions for all your business needs.
Get in touch today for a FREE consultation.
No hidden costs, no obligations.
Feel free to drop us an email too!
[email protected]
Premia TNC has the optimal solutions for all your business needs.
Get in touch today for a FREE consultation.
No hidden costs, no obligations.
Feel free to drop us an email too!
[email protected]
