Corporate taxation in Malaysia provides robust incentives for qualifying Small and Medium Enterprises (SMEs). Resident companies with paid-up capital of RM 2.5 million or less, and gross business income not exceeding RM 50 million, enjoy tiered tax rates.
Current SME Tax Tiers:
- First RM 150,000 taxable income: 15%
- RM 150,001 to RM 600,000: 17%
- Remaining balance: 24% standard corporate rate.
Proper tax planning through Form CP204 estimates and accurate management of capital allowances for digital assets ensures you optimize cash reserves while avoiding LHDN penalties for underestimation.
MT
Written by Marcus Tan, CA(M)
Head of Corporate Governance & Accounting
Frontier Management Services provides licensed corporate governance, secretarial custody, and accounting advisory across Malaysia.