How is Corporate Income Tax Calculated in Malaysia?
2024-06-11
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 (%) | |
| 2022 | 2023 | ||
| Resident company (other than company described below) | 24 | 24 | |
Resident company:
|
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.
Reference: Worldwide Tax Summaries Online (pwc.com)
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