Malaysia Corporate Tax Services
Expert Malaysia tax guidance to keep your business compliant and tax-efficient.
Malaysia remains one of Southeast Asia’s most attractive business and tax jurisdictions. With a competitive corporate income tax rate, transparent compliance regime, and government incentives for high-value industries, the country provides a strong foundation for both domestic and international companies.
Terra Advisory Services helps businesses understand Malaysia’s corporate tax system—covering income tax filing, incentives, SST obligations, and cross-border compliance—so you stay efficient and fully aligned with LHDN (Inland Revenue Board of Malaysia) requirements.
Related Services:
Malaysia incorporation · Company Registration
Malaysia Corporate Income Tax Overview
Malaysia imposes corporate income tax on resident and non-resident companies under the Income Tax Act 1967.
As of 2025, the standard corporate tax rate is 24% for resident companies, while qualifying SMEs enjoy a 17% rate on the first RM 600,000 of chargeable income (with the balance taxed at 24%).
Key compliance obligations include:
Filing the Form C (Corporate Tax Return) within seven months of financial year-end.
Submitting estimates of tax payable (CP204) and making monthly instalments.
Preparing audited financial statements in accordance with Malaysian Financial Reporting Standards (MFRS).
Terra Advisory ensures your tax computations, CP204 instalments, and filings are timely, accurate, and optimized to minimize exposure to LHDN penalties.
Related Services:
Company Incorporation Malaysia · Corporate Tax Filing
Tax Incentives & SME Reliefs
Malaysia offers extensive tax incentives through the Malaysian Investment Development Authority (MIDA) to encourage growth across key sectors.
Common incentives include:
Pioneer Status & Investment Tax Allowance (ITA) for promoted activities in manufacturing, technology, and green energy.
Principal Hub Scheme for regional headquarters managing Asia-Pacific operations.
Digital Economy Incentives under MDEC (Malaysia Digital Economy Corporation).
R&D Deductions and Exemptions for approved research projects.
SMEs also benefit from:
Preferential 17% SME rate (up to RM 600,000 chargeable income).
Deductions for capital allowances and automation equipment.
Reinvestment Allowance (RA) for manufacturers expanding capacity.
Our team evaluates your eligibility for incentives and handles MIDA/MDEC applications to ensure maximum savings.
Sales & Service Tax (SST) Compliance
Malaysia replaced GST with Sales and Service Tax (SST) in 2018.
As of 2025, most goods are subject to 10% Sales Tax, while Service Tax applies at 6% for prescribed professional, management, and digital services.
Our SST Advisory Covers:
SST registration for eligible businesses (> RM 500,000 annual taxable turnover).
Preparation and submission of SST-02 returns.
Input and output tax reconciliation and record-keeping.
Review of service scope to prevent over- or under-collection of SST.
Terra Advisory Services helps you stay compliant with Malaysia’s SST framework and avoid interest and late-payment penalties.
Double Taxation Agreements & Cross-Border Planning
Malaysia has over 70 active Double Taxation Agreements (DTAs) to prevent income from being taxed twice between jurisdictions.
Our International Tax Services Include:
Reviewing treaty eligibility and withholding tax relief.
Obtaining Tax Residence Certificates (TRC) from LHDN.
Structuring inbound and outbound investments for tax efficiency.
Transfer pricing documentation and BEPS 2.0 alignment.
Our cross-border tax experts advise on holding structures and intra-group transactions to ensure tax efficiency and regulatory compliance across Malaysia and Singapore.
Related Services:
Cross-Border Tax Planning · Regional Expansion Advisory
Accounting & Compliance Framework
All companies in Malaysia must prepare financial statements under MFRS and file annual returns with the Companies Commission of Malaysia (SSM).
We Provide:
Cloud-based bookkeeping (Xero, QuickBooks, Zoho Books).
Year-end closing and financial statement preparation.
Statutory audit liaison and audit readiness checks.
CP204 and CP204A tax estimate management.
Compliance health reviews to minimize LHDN risk.
Our team ensures your records and filings are fully aligned with LHDN and SSM requirements.
Why Choose Terra Advisory Services for Malaysia Corporate Tax
Deep expertise in Malaysia–Singapore cross-border tax structuring.
End-to-end corporate tax and SST compliance solutions.
Proven experience with SMEs, startups, and regional headquarters.
Transparent advisory with a focus on strategic tax efficiency.
From incorporation to annual compliance, Terra Advisory Services is your trusted partner for navigating Malaysia’s tax landscape.
Book a Consultation to speak with our Malaysia tax specialists.