Malaysia Corporate Tax Calculator

Summary

This calculator computes Malaysia corporate income tax payable under the LHDN (Inland Revenue Board) rules. Small and Medium Enterprises (SMEs) with paid-up capital of RM 2.5 million or less and annual revenue not exceeding RM 50 million benefit from preferential rates: 15% on the first RM 150,000 of chargeable income, 17% on the next RM 450,000, and 24% on the remainder. All other resident companies pay a flat 24% rate on total chargeable income. The calculator shows tax payable, after-tax profit, and effective rate.

How it works

1. Enter your company's chargeable income for the year of assessment.
2. Select whether your company qualifies as an SME (paid-up capital ≤ RM 2.5M and annual revenue ≤ RM 50M).
3. 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.
4. For standard companies, a flat 24% rate is applied to total chargeable income.
5. 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