General

Jurisdiction

Taxation

Taxation that our company are subjected to:

1. Income tax
   
2. Development tax
   
3. Petroleum income tax
   
4. Real Property gains tax
   
5. Indirect tax:

                         A) Sales tax

                         B) Service tax

                         C) Custom Duties

                         D) Others

INCOME TAX

• Based on Malaysian sourced income
  
• 35% tax rate

DEVELOPMENT TAX

• Based on branch profits
  
• 4% tax rate

PETROLEUM

• With participation in exploring, exploiting, obtaining or winning oil onshore Malaysia
  
• Sign production sharing contract (PSC)
  
• tax rate of 38%

REAL PROPERTY GAINS TAX

• Possess any land property in Malaysia
  
• Based on land, buildings, mines and plantations
  
• Rates:

Disposable from date of acquisition	Individual(%)	Company(%)
Within 2 yrs	30	30
Within 3 yrs	20	20
Within 4 yrs	15	15
Within 5 yrs	5	5
> 5 yrs	0	5

 

 

 

 

 

INDIRECT TAX

 A) SALES TAX

• Includes taxable goods manufactured, used or dispose within the country
  
• Include all import goods to Malaysia
  
• All movable goods are not exempted.

B) SERVICE TAX

• Scope is services and sales by hotels, restaurants, coffee houses, private clubs, night clubs, dance halls, massage parlours, health centres, professional and consultancy services
  
• tax rate of 5%

C) CUSTOMS DUTIES

• Based on the importing and exporting of duties
  
• tax rate depend on good weight and value etc.
  
• Apply for exemption to authorities on raw materials for manufacture of goods for export
  
• Able to apply drawback

D) OTHERS

• Include entertainment tax, road tax and property taxes
  
• Collected by State Governments.

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