What is the standard Malaysia corporate tax rate?

Resident companies that do not qualify as SMEs pay a flat rate of 24% on their total chargeable income.

Who qualifies as an SME for preferential corporate tax rates?

A company qualifies as an SME if it is a Malaysian-resident company with paid-up ordinary share capital of RM 2.5 million or less AND gross business income not exceeding RM 50 million for the year of assessment. Companies where more than 50% of shares are held by a related company that does not itself qualify as an SME are excluded.

What are the SME preferential tax rates?

Qualifying SMEs pay 15% on the first RM 150,000 of chargeable income, 17% on the next RM 450,000 (i.e., from RM 150,001 to RM 600,000), and 24% on any chargeable income above RM 600,000.

Is chargeable income the same as accounting profit?

No. Chargeable income is your accounting profit adjusted for non-deductible expenses, capital allowances, and other LHDN adjustments. Enter the LHDN-adjusted figure for an accurate result.

Does this calculator cover withholding tax or Real Property Gains Tax?

No. This tool calculates corporate income tax only. Withholding tax on payments to non-residents and Real Property Gains Tax (RPGT) on property disposals are separate taxes not covered here.

Are pioneer status or investment tax allowance incentives included?

No. MIDA-granted incentives such as pioneer status (full or partial tax exemption) or investment tax allowances reduce chargeable income or tax payable beyond this standard calculation. Apply any incentive adjustments to your chargeable income figure before entering it here.

What about Labuan companies?

Labuan entities are subject to a separate Labuan Business Activity Tax Act regime (typically 3% of net audited profits or a flat RM 20,000). This calculator applies only to standard LHDN corporate income tax for mainland Malaysia companies.

Malaysia Corporate Tax Calculator

Enter your company's chargeable income to calculate Malaysia corporate income tax — SME preferential rates vs standard 24% rate.

Company Details

Chargeable Income (MYR)

Company Type

Standard Resident Company — 24% Paid-up capital > RM 2.5M, or annual revenue > RM 50M

SME — Preferential Rates (15% / 17% / 24%) Paid-up capital ≤ RM 2.5M and annual revenue ≤ RM 50M

Enter chargeable income and click Calculate Tax to see results.

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Summary

Enter your company's chargeable income to calculate Malaysia corporate income tax — SME preferential rates vs standard 24% rate.

How it works

Enter your company's chargeable income for the year of assessment.
Select whether your company qualifies as an SME (paid-up capital ≤ RM 2.5M and annual revenue ≤ RM 50M).
For SMEs, the calculator applies the tiered preferential rates: 15% on the first RM 150,000, 17% on the next RM 450,000, then 24% on the balance.
For standard companies, a flat 24% rate is applied to total chargeable income.
Tax payable, after-tax profit, and effective tax rate are shown instantly.

Use cases

Estimate annual corporate tax liability before year-end planning.
Compare tax burden between SME preferential rates and the standard 24% rate.
Plan dividend distributions and retained earnings based on after-tax profit.
Prepare financial forecasts and investor presentations with accurate tax figures.
Determine if incorporating as an SME-eligible entity produces material tax savings.
Model tax impact of revenue growth crossing the RM 50 million SME threshold.
Cross-check LHDN tax assessments for straightforward single-company scenarios.

Frequently Asked Questions

Last updated: 2026-09-19 · Reviewed by Nham Vu

Malaysia Corporate Tax Calculator

Company Details

Breakdown

SME Bracket Breakdown

Summary

How it works

Use cases

Frequently Asked Questions

Malaysia Corporate Tax Calculator

Use the Malaysia Corporate Tax Calculator

Company Details

Breakdown

SME Bracket Breakdown

Summary

How it works

Use cases

Frequently Asked Questions