>  Tax Rates
     
   
Company Tax  
Resident and non-resident companies
26%
Resident companies with paid-up capital of RM2.5 million (US$705,318) and less at the beginning of the basis period for a year of assessment.

- on the first RM500,000 (US$141,064) chargeable income

20%

- on subsequent chargeable income

26%
     
   
Petroleum Income Tax  
Companies and persons carrying on petroleum operations
38%
"Petroleum operations" means searching for, winning or obtaining of petroleum in Malaysia (by drilling, mining, extracting, etc); all operations incidental thereto and sale or disposal of that petroleum; or transportation within Malaysia of that petroleum; but excludes transportation outside Malaysia; refining or liquefing; service involving the supply and used of rigs, derricks, ocean tankers and berges.






   
   
Personal Income Tax
Resident individuals with chargeable income of RM16,667 (US$4,702) and above per annum (after deduction of personal reliefs)
1% - 28%
Non-resident individuals (not entitled to any personal reliefs)
28%
     
   
Withholding Tax
Non-resident persons
Special classes of income (use of moveable property, technical services,
10%
  installation services on the supply of plant and machinery, etc.)  
Interest
15%
Royalty
10%

Contract payment on:
- account of contractor
- account of employee


10%
3%

     
   
 Sales Tax  

Sales tax is imposed on certain imported and locally manufactured goods under the Sales Tax Act, 1972. The tax rate ranges from 5 - 10% for majority of the goods except for food preparations other than alcoholic and non-alcoholic compound preparations (other than those of heading No. 33.02) used for making benerages which falls under the tariff code 2106.90.490 with tax rate of 20%. Sales tax is also imposed on petroleum and petroleum products according to specific rates.

5% - 10%
     
   
Service Tax  
Service tax is imposed on taxable services provided by taxable persons. Services include services provided by professionals (such as lawyers, engineers, architects, surveyors, consultants), advertising firms, private hospitals, insurance companies, communication companies, hotels and restaurants.
5%
     
   
Excise Duty
Duty Rate
Excise duty is levied on imported and locally manufactured goods under the Excise Act, 1976. The goods are listed under the Excise Duties Order, 2004. Goods include;
- Motocars 75% - 105%
- 4Wheel drives 65% - 105%
- Motorcycle 20% - 30%
- Intoxicating liquor RM0.10 + 15% - RM42.50 + 15% per litre
- Cigarettes RM0.15 per stick + 20%
- Playing cards & mahjong tiles 10%
    Source: Malaysian Industrial Development Authority (MIDA)
   
   
> Rates of Capital Allowances
   
   

Capital allowances are given on qualifying capital expenditure. Initial allowances are given only once while annual allowances are given every year by the straightline method. Some of the items accorded allowances are shown below. For plant and machinery, companies are advised to verify with the Inland Revenue Board on the specific items which qualify.

     
   
Initial Allowances  
Industrial buildings 10%
Computer and IT equipment 20%
Environmental control equipment 40%
Heavy machinery & motor vehicles 20%
Plant and machinery 20%
Others 20%
     
   
 Annual Allowances  
Industrial buildings 3%
Computer and IT equipment 40%
Environmental control equipment 20%
Plant and machinery  
Motor vehicles, heavy machinery 20%
Plant and machinery 14%
Others 10%
Sources:
Inland Revenue Board
Royal Malaysian Customs
 
     
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