Malaysia Income Tax Rate, GST, Corporate TaxIncome Tax Rate, GST, Corporate Tax and Capital Gain Tax in Malaysia for Financial Year 2017-18

 

Income Tax Rate in Malaysia for the Financial year 2017-18 is progressive rate from 0% to 26% and maximum rate is 28%. There is distinction in tax rate for Resident and Non Resident individuals in Malaysia.

 

 

Individual Income Tax Rate in Malaysia for Financial Year 2017-18

Income Slab Tax Rate
Income upto MYR 5,000 0%
MYR 5,000 to MYR 20,000 1%
MYR 20,001 to MYR 35,000 5%
MYR 35,001 to MYR 50,000 10%
MYR 50,001 to MYR 70,000 16%
MYR 70,001 to MYR 100,000 21%
MYR 100,001 to MYR 250,000 24%
MYR 250,001 to MYR 400,000 24.5%
MYR 400,001 to MYR 600,000 25%
MYR 600,001 to MYR 10,00,000 26%
Above MYR 10,00,000 28%

 

Deductions and Tax Credits

If any expenses is incurred for wholly and exclusively in the duties, the employees are allowed to claim deductions.

Subject to limits donations to donations to approved institutions or organisations are deductible.

Interest paid for housing loan will be available only when income is derived from the house.

 

Income Tax Rate for Non Residents in Malaysia

28% for the Income earned by a Non Resident for his income from Malaysian sources unless the person works less than 61 days in a year or if his country of residence has concluded a double taxation agreement with Malaysia.

 

Corporate Tax Rate in Malaysia

24% - Standard Corporate Tax Rate

19% for the first MYR 500,000 then 24% for Residential small and medium sized enterprises with capitalization of less than 2.5 Million

 

Goods and Services Tax (GST) in Malaysia

6% is the Rate of GST in Malaysia

 

Items Exempted from GST in Malaysia

The following items are exempted from GST:

- Residential buildings

- Life insurance

- Private health services

- Private educational services

- Financial services

- Land for agricultural and public use

- Public mass transportation and highway tolls

 

Zero Rated supplies

- Basic essential goods such as rice, fresh fish, meat, chicken, cooking oil and fresh vegetables

- Water for domestic use

- The first 300 kWh of electricity for domestic use

- Exports of goods.

 

Excise Duty in Malaysia

The following items are subject to Excise duties:

- Tobacco

- Beer and liquor

- Motor vehicles

- Playing cards

- Mahjong tiles

 

Capital Gain Tax in Malaysia

Taxable capital gain is only the gains derived from sale of real property or on the alienation of shares in a real property company.

 

Capital Gain tax Rate

- 30% Tax for real property disposed of within 3 years

- 20% Tax for disposal of real property in 4th year

- 15% Tax for disposal of real property in 5th year

- 5% Tax for property disposed of after 6th year or more

 

Withholding Tax Rate in Malaysia

0% for Dividends

15% for Interest

10% for Royalty

 

 

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