OpenAccountants/Malaysia/Malaysia Corporate Income Tax

Malaysia Corporate Income Tax

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: corporate income tax for Malaysia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Attested by another accountantReviewed by MUHAMMAD HANIS MAT HUSSIN CA-53636· Reviewed Jul 6, 2026

1 accountant attests

Accountant-reviewed general reference. Reviewed by MUHAMMAD HANIS MAT HUSSIN CA-53636as reference material, not for your specific facts. Don't file, pay, or take a position on it without a professional reviewing your situation.

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Key figures — Malaysia, 2025

Every figure is drawn from this Tax Guide and cited to its source.

General framework

Companies are taxed under a single-tier system on income accruing in or derived from Malaysia. Resident SMEs enjoy reduced rates on the first tranches of chargeable income.

Standard corporate income tax rate

24%Income Tax Act 1967, Schedule 1View source ↗

Resident SME rate — first RM150,000 of chargeable income

15%Income Tax Act 1967, Schedule 1

Resident SME rate — RM150,001 to RM600,000 of chargeable income

17%Income Tax Act 1967, Schedule 1

Resident SME rate — chargeable income above RM600,000

24%Income Tax Act 1967, Schedule 1

SME eligibility criteria

Resident company with paid-up ordinary share capital of RM2.5 million or less at the start of the basis period AND gross business income not exceeding RM50 million (plus shareholding/group conditions)Income Tax Act 1967, Schedule 1 / Paragraph 2A-2DView source ↗

Tax base

Income accruing in or derived from Malaysia (territorial); foreign-source income generally exempt unless specifically taxableIncome Tax Act 1967, Section 3

Dividend taxation (corporate level)

Single-tier system — dividends paid by Malaysian companies are not taxed again in the shareholder's hands and carry no withholding taxIncome Tax Act 1967

Domestic top-up tax (QDMTT) under Pillar Two

15% minimum effective rate for in-scope multinational groups, financial years on or after 1 January 2025Income Tax Act 1967 (Finance Act / Multinational Top-up Tax provisions)

General framework

Payments to non-residents attract withholding tax at statutory rates, often reduced under double tax agreements. Companies pay tax in monthly instalments based on an estimate and file annually.

Withholding tax on dividends paid to non-residents

0% (no withholding tax under the single-tier system)Income Tax Act 1967View source ↗

Withholding tax on interest paid to non-residents

15% (may be reduced by treaty)Income Tax Act 1967, Section 109View source ↗

Withholding tax on royalties paid to non-residents

10% (may be reduced by treaty)Income Tax Act 1967, Section 109View source ↗

Withholding tax on technical/service fees to non-residents (Section 4A)

10% (may be reduced by treaty)Income Tax Act 1967, Section 109B

Estimate of tax payable (Form CP204)

Companies must submit an estimate of tax payable not later than 30 days before the start of the basis periodIncome Tax Act 1967, Section 107C

Payment of estimated tax

Paid in monthly instalments (generally 12) by the 15th of each month during the basis periodIncome Tax Act 1967, Section 107C

Annual return filing (Form C)

Within 7 months after the close of the financial year-end (via e-Filing)Income Tax Act 1967, Section 77AView source ↗

Rendered from the canonical facts model · method attested Jul 6, 2026 (covers the method, not the currency of individual figures). General reference only — confirm with a qualified professional before acting.

The full Guide

Corporate tax rates and base

General framework — Companies are taxed under a single-tier system on income accruing in or derived from Malaysia. Resident SMEs enjoy reduced rates on the first tranches of chargeable income.
Standard corporate income tax rate — 24% % (Income Tax Act 1967, Schedule 1)
Resident SME rate — first RM150,000 of chargeable income — 15% % (Income Tax Act 1967, Schedule 1)
Resident SME rate — RM150,001 to RM600,000 of chargeable income — 17% % (Income Tax Act 1967, Schedule 1)
Resident SME rate — chargeable income above RM600,000 — 24% % (Income Tax Act 1967, Schedule 1)
SME eligibility criteria — Resident company with paid-up ordinary share capital of RM2.5 million or less at the start of the basis period AND gross business income not exceeding RM50 million (plus shareholding/group conditions) (Income Tax Act 1967, Schedule 1 / Paragraph 2A-2D)
Tax base — Income accruing in or derived from Malaysia (territorial); foreign-source income generally exempt unless specifically taxable (Income Tax Act 1967, Section 3)
Dividend taxation (corporate level) — Single-tier system — dividends paid by Malaysian companies are not taxed again in the shareholder's hands and carry no withholding tax (Income Tax Act 1967)
Domestic top-up tax (QDMTT) under Pillar Two — 15% minimum effective rate for in-scope multinational groups, financial years on or after 1 January 2025 % (Income Tax Act 1967 (Finance Act / Multinational Top-up Tax provisions))

Withholding tax and corporate filing

General framework — Payments to non-residents attract withholding tax at statutory rates, often reduced under double tax agreements. Companies pay tax in monthly instalments based on an estimate and file annually.
Withholding tax on dividends paid to non-residents — 0% (no withholding tax under the single-tier system) % (Income Tax Act 1967)
Withholding tax on interest paid to non-residents — 15% (may be reduced by treaty) % (Income Tax Act 1967, Section 109)
Withholding tax on royalties paid to non-residents — 10% (may be reduced by treaty) % (Income Tax Act 1967, Section 109)
Withholding tax on technical/service fees to non-residents (Section 4A) — 10% (may be reduced by treaty) % (approx — confirm scope of Section 4A income) (Income Tax Act 1967, Section 109B)
Estimate of tax payable (Form CP204) — Companies must submit an estimate of tax payable not later than 30 days before the start of the basis period (Income Tax Act 1967, Section 107C)
Payment of estimated tax — Paid in monthly instalments (generally 12) by the 15th of each month during the basis period (Income Tax Act 1967, Section 107C)
Annual return filing (Form C) — Within 7 months after the close of the financial year-end (via e-Filing) (Income Tax Act 1967, Section 77A)

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Review status

Accountant-reviewed

Reviewed by a named licensed practitioner against the stated sources, as general reference material.

Accountant-reviewed

Reviewed by MUHAMMAD HANIS MAT HUSSIN CA-53636 · 6 July 2026

Applicable period: 2025

A named accountant reviewed this complete Guide version within the stated scope. It is not a guarantee.

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Malaysia Corporate Income Tax

Source-cited draft: corporate income tax for Malaysia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Attested by another accountantReviewed by MUHAMMAD HANIS MAT HUSSIN CA-53636· Reviewed Jul 6, 2026

Corporate tax rates and base

General framework — Companies are taxed under a single-tier system on income accruing in or derived from Malaysia. Resident SMEs enjoy reduced rates on the first tranches of chargeable income.

Standard corporate income tax rate — 24% % (Income Tax Act 1967, Schedule 1)

Resident SME rate — first RM150,000 of chargeable income — 15% % (Income Tax Act 1967, Schedule 1)

Resident SME rate — RM150,001 to RM600,000 of chargeable income — 17% % (Income Tax Act 1967, Schedule 1)

Resident SME rate — chargeable income above RM600,000 — 24% % (Income Tax Act 1967, Schedule 1)

SME eligibility criteria — Resident company with paid-up ordinary share capital of RM2.5 million or less at the start of the basis period AND gross business income not exceeding RM50 million (plus shareholding/group conditions) (Income Tax Act 1967, Schedule 1 / Paragraph 2A-2D)

Tax base — Income accruing in or derived from Malaysia (territorial); foreign-source income generally exempt unless specifically taxable (Income Tax Act 1967, Section 3)

Dividend taxation (corporate level) — Single-tier system — dividends paid by Malaysian companies are not taxed again in the shareholder's hands and carry no withholding tax (Income Tax Act 1967)

Domestic top-up tax (QDMTT) under Pillar Two — 15% minimum effective rate for in-scope multinational groups, financial years on or after 1 January 2025 % (Income Tax Act 1967 (Finance Act / Multinational Top-up Tax provisions))

Withholding tax and corporate filing

General framework — Payments to non-residents attract withholding tax at statutory rates, often reduced under double tax agreements. Companies pay tax in monthly instalments based on an estimate and file annually.

Withholding tax on dividends paid to non-residents — 0% (no withholding tax under the single-tier system) % (Income Tax Act 1967)

Withholding tax on interest paid to non-residents — 15% (may be reduced by treaty) % (Income Tax Act 1967, Section 109)

Withholding tax on royalties paid to non-residents — 10% (may be reduced by treaty) % (Income Tax Act 1967, Section 109)

Withholding tax on technical/service fees to non-residents (Section 4A) — 10% (may be reduced by treaty) % (approx — confirm scope of Section 4A income) (Income Tax Act 1967, Section 109B)

Estimate of tax payable (Form CP204) — Companies must submit an estimate of tax payable not later than 30 days before the start of the basis period (Income Tax Act 1967, Section 107C)

Payment of estimated tax — Paid in monthly instalments (generally 12) by the 15th of each month during the basis period (Income Tax Act 1967, Section 107C)

Annual return filing (Form C) — Within 7 months after the close of the financial year-end (via e-Filing) (Income Tax Act 1967, Section 77A)