Malaysia

Corporate - Significant developments

Last reviewed - 14 December 2021

Introduction of one-off cukai makmur of 33%

In order to support the Government’s initiative to assist parties affected by the pandemic, a special one-off tax, “ cukai makmur” or prosperity tax is imposed on non-micro, small and medium enterprises which generate high profits during the period of the pandemic at the rate of 33 percent on the portion of chargeable income in excess of RM100 million for the year of assessment 2022 only.

Foreign-sourced income taxed upon remittance into Malaysia

Foreign-sourced income of all Malaysian tax residents which is received in Malaysia will no longer be exempted with effect from 1 January 2022. The scope of income to be taxed covers all classes of income, including passive income (e.g. dividends, interest, royalties, etc.) There will, however, be a transitional period from 1 January 2022 to 30 June 2022 where foreign-sourced income remitted to Malaysia will be taxed at the rate of 3% on gross income.