Taxation

Malaysia Corporate Tax Rate for Year of Assessment

Posted LnCoadmin
Corporate Tax Rate 2024
Details Net Chargeable Income Tax Rate
Company with paid up capital < RM2.5 million

Gross Business Income < RM50 million

 First RM150,000

RM150,001 – RM600,000

RM600,001 & above

15%

17%

24%
Company with paid up capital > RM2.5 million /
Non-resident companies		 —— 24%

Corporate Tax Rate 2024

Condition to get the 15% lowest tax rate:

  • Must be Malaysian resident company
  • Paid-up capital below RM 2.5 mil
  • Revenue not more than RM 50 mil
  • If the company has a holding company, the holding company need to be SME

 

1. Condition of resident companies:

  • Not more than 20% of its paid-up capital in respect of ordinary shares is being owned by one or more foreign companies, either directly or indirectly.
  • Not more than 20% of its paid-up capital in respect of ordinary shares is being owned by one or more individuals who are non-Malaysian citizens, either directly or indirectly.

*This regulation will come into effect in 2024*

 

2. Holding company:

In a simple word, a holding company refers to a company that has controlling power against the other company by holding over 50% of their shares. For example, Company A obtains over 50% of Company B’s shares, Company A is the holding company to Company B.

Corporate Tax Rate for Year of Assessment

Corporate Tax Rate 2023 – 2024
Details Net Chargeable Income Tax Rate
Company with paid up capital < RM2.5 million

Gross Business Income < RM50 million

 First RM150,000

RM150,001 – RM600,000

RM600,001 & Subsequent Balance

15%

17%

24%
Company with paid up capital > RM2.5 million /
Non-resident companies		 —— 24%

Corporate Tax Rate 2023 – 2024

Corporate Tax Rate 2020 – 2022
Details Net Chargeable Income Tax Rate
Company with paid up capital < RM2.5 million

Gross Business Income < RM50 million

 First RM600,000

RM600,001 & Subsequent Balance

17%

24%
Company with paid up capital > RM2.5 million /
Non-resident companies		 —— 24%

Corporate Tax Rate 2020 – 2022

Corporate Tax Rate 2019
Details Net Chargeable Income Tax Rate
Company with paid up capital < RM2.5 million First RM500,000

RM500,001 & Subsequent Balance

17%

24%
Company with paid up capital > RM2.5 million /
Non-resident companies		 —— 24%

Corporate Tax Rate 2019

Corporate Tax Rate 2017 – 2018
Details Net Chargeable Income Tax Rate
Company with paid up capital < RM2.5 million First RM500,000

RM500,001 & Subsequent Balance

18%

24%
Company with paid up capital > RM2.5 million /
Non-resident companies		 —— 24%

Corporate Tax Rate 2017 – 2018

Corporate Tax Rate 2016
Details Net Chargeable Income Tax Rate
Company with paid up capital < RM2.5 million First RM500,000

RM500,001 & Subsequent Balance

19%

24%
Company with paid up capital > RM2.5 million /
Non-resident companies		 —— 24%

Corporate Tax Rate 2016

Corporate Tax Rate 2009 – 2015
Details Net Chargeable Income Tax Rate
Company with paid up capital < RM2.5 million First RM500,000

RM500,001 & Subsequent Balance

20%

25%
Company with paid up capital > RM2.5 million /
Non-resident companies		 —— 25%

Corporate Tax Rate 2009 – 2015

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