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Low Corporate Tax Rate
Malaysia’s standard corporate tax rate is 24%, with a reduced rate of 17% for SMEs on the first RM600,000 of chargeable income. The government provides additional tax incentives for priority sectors including manufacturing, technology, and green industries, making Malaysia competitive within the ASEAN region.
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New Companies Act
The new Companies Act of 2016 has made it easier and more cost-effective to register a company in Malaysia. This law simplifies the registration process and implements other reforms for companies operating in Malaysia, such as allowing the formation of single-member companies and providing audit exemptions for specific types of companies.
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Education and Low-Cost Labor
Malaysia has one of the best workforces in Asia, with lower costs compared to other countries in the region. The government supports human resource development across various industries and has increased the number of public training institutions to meet the growing industry demands and qualifications.
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No Language Barriers
Malaysia is a multilingual country, with Malay as the official language, but English, Mandarin, and Tamil are also widely used. Especially the younger generation of Malaysians can fluently use multiple languages.
Tax Info
Enter Dynamic Page- General CIT Rate
- 24
- CIT Return Due Date
- Within seven months after the end of the accounting period.
- CIT Payment Due Date
- The last day of the seven-month period following the end of the accounting period.
- CIT Estimated Payment Due Date
- Prepaid taxes are to be paid in 12 monthly installments.
- Resident Withholding Tax (Dividend/Interest/Royalty)
- 0/0/0
- Non-Resident Withholding Tax (Dividend/Interest/Royalty)
- 0/0 - 15/10
- General VAT Rate
- 10/8
- General Capital Gain Tax Rate
- Since 1 March 2024 a company pays capital gains tax on disposals of unlisted shares of Malaysian companies (10% of the net gain, or 2% of the gross disposal price for shares acquired before 1 January 2024), on section 15C shares and on foreign capital assets received in Malaysia. Gains on real property in Malaysia are subject to RPGT (up to 30%).
Administrative Regions
- 01 - Johor
- 02 - Kedah
- 03 - Kelantan
- 04 - Melaka
- 05 - Negeri Sembilan
- 06 - Pahang
- 07 - Penang
- 08 - Perak
- 09 - Perlis
- 10 - Selangor
- 11 - Terengganu
- 12 - Sabah
- 13 - Sarawak
- 14 - Kuala Lumpur
- 15 - Labuan
- 16 - Putrajaya
Belonging Jurisdiction
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MY - Malaysia
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