CORPORATE TAX RATES IN MALAYSIA

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Business Structure	Tax Treatment
Sole Proprietorship	Tax gains or profits made from carrying on a business, trade, vocation or profession under this business structure are considered business income under individual income. Only expenses directly incurred to generate the business income are allowed in calculating chargeable income. Personal expenses such as phone bills, personal car, pre-incorporation expenses are not allowable.
Conventional Partnership	Similar tax treatment as Sole Proprietorship.
Limited Liability Partnership	Similar tax treatment as a private limited company (Sdn Bhd).
Private Limited Company (Sdn Bhd)	Company with paid-up capital not more than RM2.5 million and gross business income not more than RM50 million is eligible for SME Tax Rates. YA 2023 onwards (SME Tax Rates): On the first RM150,000 – 15% From RM150,001 to RM600,000 – 17% Subsequent balance – 24% Companies with paid-up capital of more than RM2.5 million will be taxed at 24%. With effect from YA 2024, if more than 20% of a company’s paid-up share capital is owned (directly or indirectly) by companies incorporated outside Malaysia or by non-Malaysian citizens, the company will not be eligible for SME Tax Rates and will be taxed at 24% instead.
Foreign Company / Branch	Treated as a non-resident for tax purposes. The foreign branch is taxed on income derived from Malaysia.
Regional Office or Representative Office	Not allowed to carry on business in Malaysia and is not subject to tax.