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a)    Residence status
A company is tax resident in Malaysia  if its management and control is exercised in Malaysia. Management and control is normally considered to be exercised at the place where directors’ meetings are held.

b)    Resident Company
All income are tax at 28%. 
With effect from YA 2004 till YA 2006, a resident company with paid-up capital of RM2.5 million or less, is taxed at the following rates: –

Chargeable Income RM  Rate (%)
 On the first  500,000  20
 Balance  ?  28

With effect from the following YA, the tax should be as per below: –
YA 2007    –    First RM500,000.00 at 20% and Balance at 27%
YA 2008    –    First RM500,000.00 at 20% and Balance at 26%
YA 2009    –    First RM500,000.00 at 20% and Balance at 25%
YA 2016 – First RM500,000.00 at 19% and Balance at 24%
YA 2017 to 2018 – First RM500,000.00 at 18% and Balance at 24%

c)    Non-Resident Company

 Royalties  10
 Rental of moveable properties  10
 Technical or management service fees  10  #
 Interest  15
 Dividends  28
 Business and other income  28

# – Only fees for technical or management services rendered in Malaysia are liable to tax.

Where the recipient is resident in a country which has a double tax treaty with Malaysia, the tax rates for specific sources of income may be reduced.

Interest paid to a non-resident by a bank or a finance company in Malaysia or on approved loans is exempt from tax. An approved loan is a loan granted to or guaranteed by the Malaysian government.


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Phone: 603-9281 1588
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