Malaysia Taxation
Service
Malaysia Tax Assistance Service
With our expert knowledge and vast experience in Malaysian tax matters, we commit ourselves to deliver a comprehensive suite of tax services to our clientele.
Corporate Income Tax in Malaysia
The economic landscape in Malaysia is characterized by an open-market system with zero limitations on foreign business ownership. The transference of profits and capital inflow are completely unrestricted. Malaysia’s corporate tax rate, ranging from 17% to 24%, is comparably lower than that of most advanced global economies. Companies are taxed on a sliding scale based on their chargeable income, with capital gains being non-taxable.
Whether resident or not, a company is liable for tax on income accrued in or derived from Malaysia or received in Malaysia from overseas. A company is identified as a Malaysian resident if its operational control and management are situated in Malaysia.
Our Tax Assistance Services in Malaysia comprise of:
- 1. Submitting Tax Estimation (CP204)
- 2. Crafting Tax Calculations including the analysis of accounts and formulating income tax schedules
- 3. Filing Tax Returns
- 4. Registration of Tax Files
Personal Income Tax in Malaysia
Individual taxpayers are accountable for paying tax on income accrued in and derived from Malaysia or received in Malaysia from overseas. Income transferred to Malaysia by a resident individual is tax-exempt. A non-resident individual will be taxed exclusively on income generated within Malaysia. Given the availability of potential tax reductions, governmental incentives, and intricate tax implications, it is advisable to seek expert tax advice to optimally declare your income for the highest possible tax savings.
The rate of tax is subject to the individual’s resident status. In general, an individual who spends a minimum of 182 days within a calendar year in Malaysia is considered a tax resident.
A resident individual is taxed on chargeable income following the deduction of personal reliefs at a progressive rate from 0% to 30%, effective from the assessment year of 2020.
Our offered services include:
- 1. Drafting individual income tax computations and filing of tax returns
- 2. Filing of tax returns
- 3. Registration of Tax Files
Sales and Service Tax (SST) in Malaysia
The sales tax is a single-stage levy, imposed at a solitary point in the supply chain, specifically at the import or manufacturers’ level.
The sales tax is a type of ad valorem tax, with different rates assigned to various categories of taxable goods. Petroleum sales tax, in particular, is charged at a distinct rate differing from other taxable commodities.
Service tax is a levy charged and collected on taxable services offered by any taxable entity in Malaysia as part of their business operations.
At present, goods are taxed between 5% to 10%, while services are subjected to a 6% tax.
Our Malaysia Taxation Services encompass:
- SST registration/de-registration
- Compilation of SST reports and bi-monthly (every 2 months) submission of SST returns.
FAQs for Taxation Services in Malaysia
Upon the commencement of business operations, a company needs to register for a tax file. The company must file its estimated tax payable within three months from the start date of the business, with instalments commencing from the sixth month of the basis period from operation initiation. Companies are required to submit an income return (tax return form) within seven months from the account closure date.
Resident companies with share capital valued at MYR2.5 million or less and gross business income of less than RM50 million for the relevant Year of Assessment (YA), can avail of a preferential tax rate of 17% on the first MYR 600,000 of income and 24% on the remaining income. Non-resident companies are taxed at a flat 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]
