Malaysia

Corporate - Taxes on corporate income

Last reviewed - 01 July 2020

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 (%)
2019/2020
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

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.