1. Basis of Taxation
Income is taxed on a current year basis. All taxpayers are required to submit tax returns on a self assessment basis. Income tax for resident and non-resident is imposed on income accruing in or derived from Malaysia.
2. Corporate Tax
Income tax for a company resident in Malaysia which has a paid-up capital (PUC) of RM2.5m and less at the beginning of the basis period. The YA 2008 tax rate is 26%. This will be reduced to 25% from YA 2009. However, for a company tax resident in Malaysia with a paid up capital of RM2.5m and less, the lower corporate rate of 20% is applicable on the first RM500,000 of chargeable income. CI in excess of RM500,000 will be subject to the normal corporate tax rate.
3. Withholding tax rate (non-treaty)
|
Non-resident person including a company, a body of persons and corporation |
Dividends |
Nil |
Interest |
15% |
Royalties/know-how |
10% |
Rents (for moveable property) |
10% |
Technical fees |
10% |
Director fees |
28% |
4. Residential individual tax rates
Chargeable income RM Rate of Income Tax (%)
For every ringgit of the first 2,500 0
For every ringgit of the next 2,500 1
For every ringgit of the next 15,000 3
For every ringgit of the next 15,000 7
For every ringgit of the next 15,000 13
For every ringgit of the next 20,000 19
For every ringgit of the next 30,000 24
For every ringgit of the next 150,000 27
For every ringgit exceeding 250,000 28
5. Non-residential individual tax rate 28%
6. Services tax rate 5%
Applicable to any person who carries on business of providing taxable services.
Sales tax rate 10%
Applicable to any person who manufactures taxable goods locally or imported.
7. Estate duty
Abolished from I November 1991.
8. Stamp duty
For share transfer at RM3 per RM1,000 or part thereof.
For conveyance, assignment or transfer of properties:
On the first RM100,000 1%
On the next RM400,000 2%
Thereafter 3%
9. Real Property Gains Tax (RPGT)
Any disposal of chargeable assets after 31 March 2007 is exempted from RPGT. (To clarify)
10. Income tax filing deadlines
Types of Form |
|
Deadlines |
Form BE
Form B |
Residential individual |
30 April of following year
30 June of following year |
Form M |
Non-residential individual |
30 April of following year |
Form C |
Companies |
7 months from date of closing accounts |
Form P |
Partnerships |
30 June of following year |
11. Double Tax Agreements.
Country |
Royalties
% |
Interest
% |
Dividends
% |
Albania, Republic
Argentina *
Australia
Austria
Bahrain
Bangladesh
Belgium
Canada
Chile **
China,People’s Republic
Croatia
Czech Republic
Denmark
Egypt
Fiji
Finland
France
Germany
Hungary
India
Indonesia #
Ireland
Islamic Republic of Iran**
Italy
Japan
Jordan
Kazakhstan**
Korea,Republic
Kuwait
Kyrgyz,Republic
Lebanon
Luxembourg
Malta
Mauritius
Mongolia
Morocco**
Myanmar**
Namibia
Netherlands
New Zealand
Norway
Pakistan
Papua New Guinea
Philippines
Poland
Romania
Russia
Saudi Arabia
-Old agreement *
-New agreement**
Seychelles
Singapore
South Africa
Spain**
Sri Lanka
Sudan
Sweden
Switzerland
Syria**
Taiwan
Thailand
Turkey
United Arab Emirates
United Kingdom
United States of America*
Uzbekistan
Venezuela**
Vietnam
Zimbabwe** |
10
10
Nil or 10
10
8
Nil or 10
10
Nil or 10
10
Nil or 10
Nil or 10
10
Nil or 10
10
10
Nil or 10
Nil or 10
Nil or 10
10
Nil or 10
10
8
Nil or 10
Nil or 10
10
10
10
Nil or 10
10
10
Nil or 8
Nil or 8
10
10
10
Nil or 10
10
5
Nil or 8
Nil or 10
Nil or 10
Nil or 10
10
Nil or 10
Nil or 10
Nil or 10
10
10
8
10
8
5
7
10
10
Nil or 8
Nil or 10
12
10
Nil or 10
10
10
8
10
10
10
10
10 |
Nil or 10
15
Nil or 15
Nil or 15
Nil or 5
Nil or 15
Nil or 10
Nil or 15
15
Nil or 10
Nil or 10
Nil or 12
Nil or 15
Nil or 15
Nil or 15
Nil or 15
Nil or 15
Nil or 15
Nil or 15
Nil or 10
Nil or 15
Nil or 10
Nil or 15
Nil or 15
Nil or 10
Nil or 15
10
Nil or 15
Nil or 10
Nil or 10
Nil or 10
Nil or 10
Nil or 15
Nil or 15
Nil or 10
Nil or 10
Nil or 10
Nil or 10
Nil or 10
Nil or 15
Nil or 15
Nil or 15
Nil or 15
Nil or 15
Nil or 15
Nil or 15
Nil or 15
15
Nil or 5
10
Nil or 10
10
Nil or 10
Nil or 10
Nil or 10
Nil or 10
Nil or 10
10
10
Nil or 15
Nil or 15
Nil or 5
Nil or 10
15
Nil or 10
15
Nil or 10
Nil or 10 |
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil |
1. Approved industrial royalties and interest on approved loans (as defined in each double tax agreement) to non-residents are usually tax exempt.
2.
For Taiwan, double tax relief was given to the Taipei Economic and Cultural Office in Malaysia by way of exemption orders.
* Limited double tax treaty.
** Gazetted DTAs; not yet entered into force.
# Treaty has been gazetted but not entered into force.
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