11/10/2024
๐ Corporate taxes in Malaysia are levied on taxable revenue earned by a company while conducting business in the country. The self-assessment system (SAS) is used to compute corporate taxes, replacing the manual tax return and payment process. It is essential to remember that taxable profits are not regarded as company expenditures, and tax is payable on these profits.
Taxable gains are classified into two categories โ retained earnings and profit dividends. Retained earnings are profits used to cover expenditures or expand the company, while profit dividends are not included in the Malaysian corporate tax computation.
The standard corporate tax rate in Malaysia is 24%, but there are other rates based on the type of company. For instance, a resident company with a paid-up capital of RM2.5 million or less and a gross income from a business not exceeding RM50 million will have a tax rate of 17% for the first RM600,000.
To reduce your company tax in Malaysia, there are several strategies you can employ, such as taking advantage of available tax incentives, maximizing allowable deductions, and engaging a tax consultant to help you navigate the regulations. Additionally, you can consider restructuring your business to benefit from lower tax rates, such as incorporating a subsidiary in a tax haven country.
Reducing your company tax in Malaysia requires careful planning and ex*****on. With the right strategies in place, you can effectively minimize your tax burden and increase your business profits.
