Malaysia

Overview

Last reviewed - 01 July 2020

Malaysia, located in Southeast Asia, is separated by the South China Sea into two non-contiguous regions: the Peninsula Malaysia region bordering Thailand (i.e. West Malaysia) and the Malaysia Borneo region bordering Indonesia and Brunei (i.e. East Malaysia). Malaysia is divided into 13 states and three federal territories, with Kuala Lumpur as the capital and Putrajaya as the seat of the federal government. The official language of Malaysia is Bahasa Malaysia, and the currency is the Malaysian ringgit (MYR).

Over the last 50 years, Malaysia has developed from a primary commodities exporter to a strong industrial base for foreign electrical and electronics multinational corporations. As an oil and gas exporter, Malaysia has profited from higher world energy prices, but the government recognises the need to reduce the dependence on petroleum as the main source of revenue. In the last decade, as it moved up the industry value chain, Malaysia has emerged as an attractive regional hub for services, including financial services, information and communications technology (ICT), and logistics sectors. Malaysia is increasingly being recognised as an innovative international Islamic financial centre. It is also emerging as a springboard or centre for regional expansion into the Association of Southeast Asian Nations (ASEAN) in view of its strategic, central location and multi-lingual ‘Truly Asia’ mix of Malay, Chinese, and Indian populace.

PwC Malaysia has a team of over 2,000 strong in Kuala Lumpur, Pulau Pinang, Ipoh, Melaka, Johor Bahru, and Labuan and has played an integral part in the growth and progress of Malaysia since 1900. Today, PwC Malaysia continues to work with many large multinationals, public sector entities, and Malaysian companies, providing solutions to their complex business issues. PwC Malaysia provides industry-focused assurance, tax, and advisory services for public and private clients in four areas:

  • Corporate accountability
  • Risk management
  • Structuring and M&A
  • Performance and process improvement

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

24

Corporate income tax (CIT) due dates
CIT return due date

Within seven months from the date of closing of accounts.

CIT final payment due date

Last day on expiry of seven months from the date upon which the accounts are closed.

CIT estimated payment due dates

Advance tax is paid by 12 monthly instalments.

Personal income tax (PIT) rates
Headline PIT rate (%)

Residents: 30;

Non-residents: 30

Personal income tax (PIT) due dates
PIT return due date

30 April (without business income) and 30 June (with business income)

PIT final payment due date

30 April (without business income) and 30 June (with business income)

PIT estimated payment due dates

Taxes are collected from employees through compulsory monthly deductions from remuneration by the 15th day of the following month.

Value-added tax (VAT) rates
Standard VAT rate (%)

Sales tax: 10;

Service tax: 6

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 0 / 0 / 0;

Non-resident: 0 / 0 or 15 / 10

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Generally, gains on capital assets are not subject to tax, except for gains arising from the disposal of real property situated in Malaysia, which is subject to RPGT (up to 30%).

Individual capital gains tax rate (%)

Generally, gains on capital assets are not subject to tax, except for gains arising from the disposal of real property situated in Malaysia, which is subject to RPGT (up to 30%).

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.