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Malaysia
Corporate - Taxes on corporate income
Last reviewed - 07 July 2025For both resident and non-resident companies, corporate income tax (CIT) is imposed on income accruing in or derived from Malaysia. Resident companies are also taxed on foreign-sourced income received in Malaysia. The current CIT rates are provided in the following table:
| Type of company | Chargeable income (MYR) | CIT rate for year of assessment 2025 (%) |
| Resident company (other than company described below) | 24 | |
Resident company:
|
On the first 150,000 | 15 |
| On the next 450,000 | 17 | |
| In excess of 600,000 | 24 | |
| Non-resident company | 24 |
Global minimum tax and domestic minimum top-up tax
Malaysia has implemented the Global Anti-Base Erosion (GloBE) Rules under the OECD’s Two-Pillar Solution. The multinational top-up tax (MTT) applies to Malaysian parent entities of multinational group entities which operates in a low-tax jurisdiction and where the effective tax rate of those entities is less than 15%. A qualified domestic minimum top-up tax (QDMTT) of 15% applies to Malaysian operations of multinational groups, allowing Malaysia to retain taxing rights over undertaxed Malaysian profits. The MTT and QDMTT came into effect for financial years commencing on or after 1 January 2025. The undertaxed profits rule is not adopted at this stage.
For more detailed information and the most recent updates, please visit PwC’s Pillar Two Country Tracker.
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.
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