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Malaysia Tax Incentives for SMEs

Updated:2017-8-14 17:29:39    Source:www.tannet-group.comViews:870

Malaysia companies with income not exceeding RM 2,500,000 per year are considered to be SMEs and eligible for the following incentives:
1) SMEs are taxed at 20% on the first RM 500,000 and at 25% on subsequent balance.
2) Taxes are exempt for newly established companies in the first 5 years.

Small-scale manufacturing companies
Small-scale manufacturing companies incorporated in Malaysia with shareholders’ funds not exceeding RM 500,000 and having at least 60% Malaysian equity are eligible for the following incentives:

1) Newly established companies are granted tax exemption of 100% for a period of five years. In addition, the accumulated loss from the business operation in the first year is eligible for tax deduction in the following year.
2) The investment expenditures are granted 60% tax deductions and the full deductions can be exercised for five years provided that the factories are located in a special area as set forth by the government.

A new private company formed to take over the existing company is eligible for getting tax incentives provided that the mentioned company complies with any of the following criteria:
1) The value added must be at least 15%.
2) The project contributes towards the socio-economic development of the rural population.

For companies which is with income exceeding RM 2,500,000 per year are taxes at 25%

Contact for Malaysia Service
If you have further enquire, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Malaysia Office hotline by 603- 2141 8908 or email to
Add: Unit 6.06, Level 6, Amoda 22, Jalan Imbi, 55100, Kuala Lumpur, Malaysia.

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