Generally, all income of companies and individuals sourced from Malaysia is liable to tax. However, income sourced from outside Malaysia and remitted into Malaysia is not taxable except for companies carrying on the business of banking, insurance, air or sea transportation.

The tax rates for companies currently are as follow:

Various incentives have been provided to lower the effective company income tax rate.

Many times, we are approached by business owners requesting us to assist them in structuring a tax efficient group structure. We always advise business owners to seek for our assistance before operations have begun as it is easier to structure a tax efficient group structure before commencing operations. However, for business owners who have commenced business operations, restructuring the group structure becomes even more important, as removing tax inefficiencies can be identified and sorted out early on and the business owners can get down to concentrate and focus solely on developing and growing the business.