What is the Taxation for Foreign Owned Company in Malaysia- An Overview
MalaysiaBizAdvisory provides services and guidance to all foreigners on the taxation matters for the foreign-owned Sdn Bhd company in Malaysia!
Regardless whether it is resident or non-resident company, all Malaysian Private Limited Company (Sdn.Bhd.) needed to appoint a licensed Tax Agent to prepare the tax file to the Inland Revenue Board of Malaysia. Each year, your appointed Tax Agent will prepare the Company’s tax returns for each Year of Assessment (“YA”) based on the information provided by the Company and submit them to the Inland Revenue Board. Under the Income Tax Act (ITA) 1967, the tax return must be submitted within seven (7) months from the date of the closing of the Company’s financial year.
Competent tax agent will prepare all tax returns and income tax computations for you for perusal, comments and approval prior to submission of the returns to the Inland Revenue Board. Tax agent shall advise on the amount of corporate tax to be paid and the dates by which the Company should make the payments. If appropriate, tax agent will assist in claims for refunds, if the tax has been overpaid. Please note, however, that the Company is legally responsible for all payment of tax on time for the company.
Taxation for Foreign Owned Company in Malaysia
Effective from 2016 Year Assessment, the corporate taxation rate apply to Malaysian Sdn Bhd companies of a “resident status” as follows:
Net Profit below RM 500,000 – 19%
Every additional RM 1 – 24%
For “non-resident” status for Malaysia Sdn Bhd companies, the corporate tax rate will be flat rate of 24%. “Non Resident” status is deemed for company with more than 50% shareholding owned by foreigners.
In summary, the Tax Agent’s duties include:
- filing clients’ annual tax returns (duly signed by the taxpayer client)
- communicating with the tax authorities on tax matters relating to his clients.
- visiting the Inland Revenue Board Of Malaysia office on behalf of clients
- representing a client in tax appeal proceedings
Tax agent license under the administrative of Finance Ministry of Malaysia. For your personal income tax return, you can also appoint a licensed tax agent or submit by yourself directly to the Inland Revenue Board yearly.
Depends on the complexity of the filling of the tax papers, here is some guidelines for the fees charged for preparation of taxation for foreign-owned company in Malaysia by the tax agent in Malaysia as follows:-
For Corporate Tax:
Tax agent fee will be based on:
Dormant company – minimum charge starts from RM 1,000
Semi-active company – charge between RM 1,500 to RM 3,000
Active company – charge RM 3,000 and above
For Personal Tax Filing:
Under employment – minimum charge start from RM 500 for tax agent fee
Send your enquiry today to find out if your business nature able to be set up in Malaysia today! We will evaluate your case to best advise you the right option!