Companies operating in Malaysia are required to pay income tax on their profits. The income tax rate for companies is determined by their tax residency status, with resident companies subject to a progressive tax rate system and non-resident companies subject to a flat rate.
Resident companies in Malaysia are subject to a progressive tax rate of 15% on their first RM150,000 of taxable income, for the next RM150,001-RM600,000 of taxable income tax rate will be 17% and 24% on any amount above that. Non-resident companies are subject to a flat tax rate of 24% on all their taxable income.
| Chargeable income | Rate (%) |
|---|---|
|
Company with paid up capital not more than RM2.5 million and gross business income of not more than RM50 million |
|
|
· On first RM150,000 |
15% |
|
· RM150,001 to RM600,000 |
17% |
|
· RM600,001 and Subsequent Balance |
24% |
|
Company other than the above category |
24% |
It is important for companies to comply with the tax regulations in Malaysia to avoid penalties and fines. Consulting with a tax professional can help businesses understand their tax obligations and plan for tax savings.
Source Link : https://www.hasil.gov.my/en/company/tax-rate-of-company/