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Tax Rate of Company


Tax Rate of Company | Professional
Tax Rate of Company | Professional

Tax Rate of Company


Year Assessment (YA)


Income is assessed on a current year basis. The YA is the year coinciding with the calendar year, for example, the YA 2023 is the year ending 31 December 2023.


The basis period for a company is normally the financial year ending in that particular YA. For example:


Accounting year end 31 December 2023 (YA 2023)

Accounting year end 30 June 2023 (YA2023)


Malaysia Corporate Tax Rates


The standard corporate income tax rate in Malaysia is 24% for both resident and non-resident companies. However, there are exceptions for certain sectors and companies.   


For example, Small and Medium Enterprises (SMEs) with a paid-up capital of RM2.5 million or less may enjoy a reduced tax rater of 15% and 17%. Additionally, companies operating in certain industries may be eligible for tax incentives and exemptions.   


Year Assessment 2024


  • Company with paid up capital not more than RM2.5 million and gross business income of not more than RM50 million

Chargeable income (MYR)

Percentage

  • On first RM150,000

15%

  • RM150,001 to RM600,000

17%

  • RM600,001 and Subsequent Balance

24%


  • Company other than the above category

Chargeable income (MYR)

Percentage


24%


It's important to consult with a tax professional or refer to the official website of the Malaysian Inland Revenue Board (IRB) for the most accurate and up-to-date information on corporate tax rates in Malaysia.


How Professional can Help


Professional can offer a wide range of services to help individuals and businesses navigate the complexities of the tax system. Here are some of the key ways Professional can help:


1. Tax Preparation and Filing:


  • Accurate Returns: Professional is well-versed in tax laws and regulations, ensuring that your tax returns are prepared accurately and in compliance with all relevant requirements.

  • Timely Filing: They can help you file your returns on time, avoiding penalties and interest charges.

  • Maximizing Deductions and Credits: Professional can identify potential deductions and credits you may be eligible for, helping you minimize your tax liability.


2. Tax Planning and Strategy:


  • Proactive Planning: Professional can help you develop a long-term tax strategy to minimize your tax burden and maximize your after-tax income.

  • Year-Round Guidance: They can provide year-round advice on tax-saving strategies, such as timing of income and expenses, investment decisions, and estate planning.

  • Identifying Opportunities: They can identify opportunities to take advantage of tax breaks and incentives, such as those related to education, retirement savings, and business expenses.


3. Tax Representation and Advocacy:


  • Handling Audits: If you are selected for an audit, Professional can represent you and advocate on your behalf, ensuring that your rights are protected and that you are treated fairly.

  • Resolving Disputes: They can help resolve any tax disputes or disagreements with the tax authorities, minimizing penalties and interest charges.

  • Negotiating Settlements: If necessary, they can negotiate favorable settlements with the tax authorities to minimize your tax liability.


4. Specialized Tax Services:


  • International Taxation: For individuals and businesses with international tax implications, Professional can provide guidance on cross-border tax issues, including foreign income, foreign tax credits, and transfer pricing.

  • Estate Planning: They can help you develop an effective estate plan to minimize estate taxes and ensure a smooth transfer of assets to your heirs.

  • Business Tax Planning: For businesses, Professional can provide guidance on corporate tax returns, payroll taxes, sales taxes, and other business-related tax issues.


By hiring Professional, you can gain peace of mind knowing that your taxes are being handled correctly and that you are taking advantage of all available tax benefits.





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