Main Types of Taxes in Malaysia

By LnCoadminInformation Sharing, Social

Malaysia’s tax system is divided into two main categories:

–Direct Taxes (administered by LHDN)
–Indirect Taxes (administered by RMCD)

Direct Taxes

Direct taxes are imposed on individuals and businesses based on their income, profit, and assets, including:

-Personal Income Tax (0%–30%) – Based on annual taxable income.

-Corporate Income Tax (15% / 17% / 24%) – Standard rate 24%; SMEs enjoy lower rates.

-Real Property Gains Tax (up to 30%) – Depending on property holding period.

-Stamp Duty (1%–4%) – Applies to property transfers and legal documents.

-Petroleum Income Tax (up to 38%) – Applicable to oil and gas sectors.

Indirect Taxes

Indirect taxes are levied on goods, services, and import/export activities, including:

-Sales Tax (5% / 10%) – Imposed on locally manufactured and imported goods.

-Service Tax (6% / 8%) – Applies to selected service industries such as hotels, insurance, and telecom.

-Import Duty (0%–60%) – Based on the type of goods imported.

-Export Duty (5%–20%) – Levied on specific exported products.

-Tourism Tax (RM10 per night) – Charged to foreign tourists staying in registered premises.

**Data updated on 08.10.2025