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 (%)|
|Resident company (other than company described below)||24|
||On the first 600,000||17|
|In excess of 600,000||24|
For year of assessment 2022 only, a special one-off tax will be imposed on companies, excluding companies that enjoy the 17% reduced tax rate above, that have generated high income during the COVID-19 pandemic, as follows:
|Chargeable income||CIT rate for year of assessment 2022 (%)|
|The first MYR 100 million||24|
|In excess of MYR 100 million||33|
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.