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12 MAR 2024
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12:33 PM

Malaysia Corporate Tax Rates 2024

(Use This Free Tool to Forecast Your Company Tax Payable)

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Overview of company tax in Malaysia

The company tax system is a leading contributor to Malaysia’s economic development and makes up one of the most primary income sources for the country. 

As legislated in the Income Tax Act 1967, corporate tax applies to all companies registered and deriving income from its businesses that operate in Malaysia. The tax assessment system here functions as a self-assessment system (SAS), in which the taxpaying entity is responsible for computing their own chargeable income and tax payable, as well as making payments of any tax balance due. 

A company is liable to pay taxes on taxable profits, which generally fall into 2 categories, namely:

  1. Retained earnings – Profit that a company uses to pay for business expenses or to grow itself. 
  1. Profit dividends – Not considered while calculating corporate tax in Malaysia

Who needs to pay corporate tax?

Corporate tax is levied on resident companies (sole proprietorships and limited liability companies) that earn income:

  • In Malaysia and;
  • From outside Malaysia for insurance companies, transportation services by sea and air, and banking only.

Taxable income for company tax comprises all types of income that can be derived from different business ventures operating in Malaysia. These income include profits/gains from business, rents, royalties, premiums, and such. As for foreign-sourced income, the proper tax treatment varies according to different scenarios.

What is the corporate tax rate for 2024? 

Corporate tax is imposed on the net revenue of a company. Simply put, net revenue is the total amount of income the company makes after deducting direct expenses. 

Common deductible corporate expenses include:

  • Start-up costs
  • Operating expenses
  • Marketing budgets 
  • Salaries and bonuses
  • Contributions for employee medical insurance and retirement fund

See the table below for YA 2023 / 2024 company tax rates:

Chargeable IncomeCorporate Tax Rate (%)
Company with paid up capital not exceeding RM2.5 million and gross business income not exceeding RM50 million
On first RM150,00015%
RM150,001 to RM600,00017%
RM600,001 and above24%
Company other than the above category24% (flat rate)

Get a forecast of your company’s tax payable with our CP204 company tax calculator. It’s quick, easy and free for use anytime. 

The company’s responsibilities while filing for corporate tax in Malaysia

As the tax authority in Malaysia, LHDN has set forth the following procedures that companies must fulfill to file their corporate tax successfully:

  • Submit the tax estimate via e-Filing (e-CP204) or manually (CP204) to the LHDN Processing Center. Effective from Assessment Year 2018, tax estimates must be submitted via e-Filing (e-CP204).
  • Make company tax installment payments (as estimated by the company)
ProcedureNew CompaniesExisting CompaniesTax Form
Submit estimatesWithin the first 3 months from registration30 days before the start of assessment yearCP204
Start paying6th month of the assessment year2nd month of the assessment yearCP207
Payment deadlineMonthly before / by the 15th of the monthCP207
Amend estimates6th, 9th or 11th* month of the assessment year
*w.e.f 2024 onwards

Note: Dormant companies are not required to submit CP204.

  • Submit Form e-C via e-Filing (including dormant companies).
  • Pay the remaining tax (if any) using CP207 before / on the last day of submission of Form e-C (7 months after the closing date of the accounting period).
  • Keep records and account books for 7 (SEVEN) years for LHDN review purposes.

Malaysia Company Tax Estimation Calculator (CP204) 

We’ve developed this free company tax calculator with small businesses (SMEs) in mind with the purpose of benefiting you in a few ways. 

  1. Get accurate tax calculations – All estimations are based on the latest tax rates and regulations. The calculator also minimizes the risk of errors, and subsequently, penalties. 
  1. Save time and effort – The calculator streamlines the tax calculation process so you can focus on other critical aspects of your business. Once you’ve collected the key information needed, simply plug them in and get your final estimate with a few clicks. 
  1. Practice proactive financial planning – By getting a clearer picture of your company tax obligations, you’re able to anticipate and allocate resources accordingly without negatively impacting your day-to-day operations. 

How Does This Calculator Work?

This CP204 tax calculator will help you forecast how much company tax you’ll pay according to the latest tax in a quick and hassle-free way. 

When To Use This CP204 Tax Calculator

  • Once you know your gross annual income
  • You want to work out your total taxable income and the total tax amount payable
Screencap of the business income section - Malaysia Company Tax Estimation Calculator (CP204)

What You’ll Need To Prepare Ahead

  • Your business financial information such as estimated revenue, gross profit / loss margins, total business expenses etc
  • Your business SME status
    • Quick refresher:
      • Paid-up share capital ≤ RM2.5 million, 
      • Gross income (business source) ≤ RM50 million, and 
      • w.e.f 2024 onwards: Direct or indirect company shareholding ≤ 20% by non-citizens of Malaysia
  • Further business expenses breakdown if applicable (disallowed or rental expenses, company owned assets etc)
Screencap of the business expenses section - Malaysia Company Tax Estimation Calculator (CP204)

Get Your Results

And that’s it! You’ll get the estimated total company tax you need to pay as well as a breakdown of your annual taxable income and deductions. What’s more, you can download your results as a PDF for easy sharing / referencing or email it directly to your inbox.

Forecast your company tax payable now with our free CP204 calculator. 

Screencap of the page headline 'CP204 Estimation Tax Calculator'

Stay on top of your corporate tax

The company tax filing process may be complex but it doesn’t have to be impossible. Get in touch with any of our experienced tax agents for holistic support in completing your company income tax filing.

TAGS :company taxcorporate taxincome tax