Malaysia's standard corporate income tax (CIT) rate is 24% for both resident and non-resident companies. Small resident companies with paid-up capital of MYR 2.5 million or less benefit from reduced rates (15%/17%/24% brackets). Malaysia has implemented OECD Pillar Two GloBE Rules effective 2025: MTT and QDMTT apply at 15% to multinational groups with consolidated revenue of EUR 750M+. Petroleum income is taxed at 38% (25% effective rate on marginal fields). Capital gains are generally exempt; real property gains taxed separately under RPGT. Sales tax is 10% single-stage; service tax at 8% (6% for reduced-rate services). WHT: resident corporations pay 0/0/0 on dividends/interest/royalties. Non-residents: 0/0-15/10. OECD EATR/EMTR data is not available for Malaysia.
Malaysia Tax Brief
Time of Update 4/05/2026
Malaysia Corporate Income Tax (CIT)
General CIT Rate:
24
CIT Return Due Date:
From the date when the account is closed, within seven months.
CIT Payment Due Date:
The last day after seven months from the date of account closure.
CIT Estimated Payment Due Date:
Prepaid taxes are to be paid in 12 monthly installments.
Malaysia Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0 - 15/10
Malaysia Value-Added Tax (VAT)
General VAT Rate:
10/6
Learn More
Malaysia Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
Generally, capital gains do not require taxation, except for the income generated from the disposal of real properties located in Malaysia, which is subject to RPGT (up to 30%).
Malaysia Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
Composite Effective Marginal Tax Rate:
Additional info
Quick Navigation
TKEG Expat Malaysia Corporate Tax Guide
Malaysia Corporate Income Tax
Malaysia Personal Income Tax (PIT)
Malaysia Capital Gains Tax (CGT)
Malaysia Sales Tax
Malaysia Service Tax
Malaysia Withholding Tax
1.
Malaysia Corporate Income Tax
Malaysia imposes corporate income tax (CIT) at a standard rate of 24% on resident and non-resident companies on income accruing in or derived from Malaysia. Resident companies are also taxed on foreign-sourced income received in Malaysia. Small resident companies with paid-up capital of MYR 2.5 million or less, gross income not exceeding MYR 50 million, and meeting ownership conditions benefit from reduced rates: 0-150,000 MYR at 15%; 150,001-600,000 MYR at 17%; above 600,000 MYR at 24%. Non-resident companies are taxed at a flat 24% CIT rate. Malaysia has implemented the OECD Pillar Two GloBE Rules effective for financial years commencing on or after 1 January 2025: the Multinational Top-up Tax (MTT) and Qualified Domestic Minimum Top-up Tax (QDMTT) apply at 15% to the Malaysian operations of multinational groups with consolidated revenue of EUR 750 million or more. Petroleum income is taxed at 38% (25% effective rate on marginal fields). There are no other local or provincial income taxes on corporations.
References
https://taxsummaries.pwc.com/malaysia/corporate/taxes-on-corporate-income
2.
Malaysia Personal Income Tax (PIT)
Individuals in Malaysia, whether tax resident or non-resident, are taxed on income accruing in or derived from Malaysia. Resident individuals are also subject to tax on foreign-sourced income received in Malaysia. Resident individual income tax rates (year of assessment 2024 onwards): 0-20,000 MYR: 1%; 20,001-35,000 MYR: 150 MYR + 3% on excess over 20,000; 35,001-50,000 MYR: 600 + 6%; 50,001-70,000: 1,500 + 11%; 70,001-100,000: 3,700 + 19%; 100,001-400,000: 9,400 + 25%; 400,001-600,000: 84,400 + 26%; 600,001-2,000,000: 136,400 + 28%; above 2,000,000: 528,400 + 30%. Non-resident individuals are taxed at a flat rate of 30% on total taxable income. Special rates apply for qualifying knowledge workers in designated regions (15%) and Returning Expert Programme participants (15% for five years). There are no local income taxes in Malaysia.
References
https://taxsummaries.pwc.com/malaysia/individual/taxes-on-personal-income
3.
Malaysia Capital Gains Tax (CGT)
In Malaysia, capital gains on assets are generally exempt from tax. However, real property gains tax (RPGT) applies to gains derived from the disposal of real property in Malaysia. The RPGT rate can be as high as 30%, depending on the property and the holding period. The CGT in Malaysia is applicable only in certain cases, primarily focusing on real estate, making it a specific tax that differs from typical capital gains taxes in other countries.
References
https://taxsummaries.pwc.com/malaysia/corporate/taxes-on-corporate-income
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