Worldwide Tax Summaries

Malaysia

Corporate - Taxes on corporate income

Last reviewed - 06 December 2023

For 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 (%)
Type of company	Chargeable income (MYR)	2022	2023
Resident company (other than company described below)		24	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 is not controlled, directly or indirectly, by another company that has paid-up capital of more than MYR 2.5 million, and with no more than 20% of its paid-up capital being owned, directly or indirectly, by a foreign company or non-Malaysian citizen (with effect from year of assessment 2024).	On the first 150,000	17	15
	On the next 450,000	17	17
	In excess of 600,000	24	24
Non-resident company		24	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.