Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.
Yes we tax in Malaysia
New tax reform: No specific information
New tax treaties:
- Tax treaty between Malaysia and Maldives is under negotiation.
Local tax advisors
No specific information on the local tax advisors.
Local tax administration
Website Tax administration: Click here
There is no definition of Permanent Establishment in Malaysia.
Entities are considered to be resident for tax purposes in Malaysia if their place of management & control is in Malaysia.
Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 24%.
Non-taxable income includes the following:
- Profits from a permanent establishment abroad
Carry forward: Yes, but some restrictions may apply
Carry back: No
Companies should submit the tax return annually.
Companies shall pay monthly advance payments.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Malaysia are the following, subject to the provisions of an applicable double tax treaty, if any.
There is no WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 0%.
The general rate of WHT on interest paid or credited is 15%.
The general rate of WHT on Royalties is 10%.
The general rate of WHT on management fees is 10%.
The general rate of WHT on technical services is 10%.
Capital gains are generally not taxed, except for the capital gain deriving from the sale of real estate, which is subject to a special real estate capital gain.
Standard GST tax rate is 6%
Zero-rated supplies include, subject to certain conditions:
- exports of goods;
- Essential items (rice, sugar, flour,…) ;
- Newspaper and magazines;
- Medical items;
- Goods supplied to custom free zones;
- Certain exported services ;
Exempt supplies include, subject to certain conditions:
- Certain financial services ;
- Transport services;
Note: exempt transactions differ from zero-rated transactions in that the input GST associated with exempt transactions is not deductible.
Certain non-resident companies (which are not required to register and incur Malaysian-GST in the course of their business activities in Malaysia) may apply for a refund.
No other specific information of GST in Malaysia.
The general statute of limitation is 6 years starting at the end of the year in which the tax return had to be filed.
There is no foreign exchange control in Malaysia. Income and capital can be freely repatriated.
There are no thin capitalization rules in Malaysia.
Do not hesitate to share your experience in Malaysia with us in the comments below. Any comments are welcome !