Taxation

Corporate Tax Rate 2023

Corporate Tax Rate 2023
Details Net Chargeable Income Tax Rate
Company with paid up capital < RM2.5 million First RM150,000

RM150,001 – RM600,000

RM600,000 & above

15%

17%

24%

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

Corporate Tax Rate 2023

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.

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