My Corporate Income Tax

---
name: my-corporate-income-tax
description: "Source-cited draft: corporate income tax for Malaysia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/my-corporate-income-tax"
  jurisdiction: "MY"
  tax_year: "2025"
  last_updated: "2026-07-13"
  reviewed_by: "MUHAMMAD HANIS MAT HUSSIN"
---

# Malaysia Corporate Income Tax

## 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](https://taxsummaries.pwc.com/malaysia/corporate/taxes-on-corporate-income))_
- **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](https://taxsummaries.pwc.com/malaysia/corporate/taxes-on-corporate-income))_
- **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](https://taxsummaries.pwc.com/malaysia/corporate/withholding-taxes))_
- **Withholding tax on interest paid to non-residents** — 15% (may be reduced by treaty) %  _([Income Tax Act 1967, Section 109](https://www.hasil.gov.my/en/legislation/withholding-tax/))_
- **Withholding tax on royalties paid to non-residents** — 10% (may be reduced by treaty) %  _([Income Tax Act 1967, Section 109](https://www.hasil.gov.my/en/legislation/withholding-tax/))_
- **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](https://www.pwc.com/my/en/publications/mtb/important-filing-furnishing-dates.html))_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `my-corporate-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/my-corporate-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.