Malaysia

Corporate - Taxes on corporate income

Last reviewed - 09 December 2022

For both resident and non-resident companies, corporate income tax (CIT) is imposed on income accruing in or derived from Malaysia. The current CIT rates are provided in the following table:

Type of company	Chargeable income (MYR)	CIT rate for year of assessment (%)
Type of company	Chargeable income (MYR)	2021/2022
Resident company (other than company described below)		24
Resident company: with paid-up capital of 2.5 million Malaysian ringgit (MYR) or less, and gross income from business of not more than MYR 50 million. that does not control, directly or indirectly, another company that has paid-up capital of more than MYR 2.5 million, and is not controlled, directly or indirectly, by another company that has paid-up capital of more than MYR 2.5 million.	On the first 600,000	17
	In excess of 600,000	24
Non-resident company		24

For year of assessment 2022 only, a special one-off tax will be imposed on companies, excluding companies that enjoy the 17% reduced tax rate above, that have generated high income during the COVID-19 pandemic, as follows:

Chargeable income	CIT rate for year of assessment 2022 (%)
The first MYR 100 million	24
In excess of MYR 100 million	33

Petroleum income tax

Petroleum income tax is imposed at the rate of 38% on income from petroleum operations in Malaysia. An effective petroleum income tax rate of 25% applies on income from petroleum operations in marginal fields. No other taxes are imposed on income from petroleum operations.

Local income taxes

There are no other local, state, or provincial government taxes on income in Malaysia.

Malaysia contacts

Jagdev Singh

Tax Leader, PwC Malaysia

+60 3 2173 1469

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