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Malaysia has a territorial taxation system whereby residents and non-residents are taxed on their Malaysian-sourced income.
The current types of taxes in Malaysia include: Different types of taxes have different methods of calculation and collection, and each has its own characteristics.
What taxes do you have to pay to open a company in Malaysia?
In Malaysia, the maximum corporate tax rate is 24%.
Starting from tax year 2017, for small and medium-sized resident enterprises established in Malaysia, that is, the paid-up capital is not more than RM2.5 million, and they do not belong to the conglomerate with companies exceeding this limit.
The first RM600,000 of income is subject to a tax rate of 18%, which will be reduced to 17% in 2019, and the tax rate of 24% will be applied to any excess income.
The Malaysian Income Tax Act stipulates that both Malaysian citizens and foreigners are obliged to file tax returns as long as they reside in Malaysia for more than 182 days in a year and have income.
Malaysia's personal income tax rate is 1%-30%, 0 for up to RM5,000 and 30% for more than RM2 million. The tax rate for foreign nationals is fixed at 30%.
Sales tax and service tax are two different types of taxes. The tax threshold starts from an annual turnover of RM500,000 (about RMB800,000) and RM1.5 million for food and beverage suppliers.
Sales tax is levied on items with three tax rates: 0%, 5% and 10%.
Among them, the 0% tax rate is mainly applicable to agricultural products, daily necessities, books, medical supplies and environmentally friendly recycled products, the 5% tax rate is mainly applicable to processed foods and imported semi-finished products, and the 10% tax rate is mainly applicable to industrial products and imported manufactured products.
The service tax rate is 6% and applies to all business services, tourism, transportation, finance, food and beverage, cross-border digital economy services, etc. carried out in Malaysia.
Basic conditions for company registration in Malaysia
The main registration in English is SDN.BHD (which means private limited company, meaning Limited.
The registered shareholders and directors of a Malay company can be a single person, 18 years old, provide a copy of the ID card and passport of the director shareholder, (it is recommended to be a local or a foreigner with a residence permit), and a local registered address.
注：个人股东注册公司无文件需要公证认证；公司股东有一份文件appoint of corporate representative需要做CTC（Certificate True Copy 核证），股东公司的注册文件无需公证认证。
Local registered address.
Generally speaking, a Malaysian company can engage in all legal business activities, but can only choose one or two of the company's main businesses at the time of registration.
The minimum registered capital is RM1 and the maximum is RM10,000.
After the completion of the registration of the Malay company, a secretary company needs to be appointed in accordance with the provisions of the Companies Act for follow-up maintenance.