Malaysia Corporate Tax Rate 2026 — 15% to 24% Explained

Malaysia's corporate tax system has multiple tiers. Your effective rate depends on company size, paid-up capital, and chargeable income. Understanding the tiers helps you plan and potentially qualify for lower rates.

Tax Rate Tiers 2026

Qualifying Conditions for Lower Rates

• Paid-up capital ≤ RM2.5 million at beginning of basis period
• Not controlled by company with paid-up > RM2.5M
• Does not control company with paid-up > RM2.5M
• For 15% MSME rate: annual revenue ≤ RM50 million

Tax Planning Strategies

• Keep paid-up capital at or below RM2.5M to maintain SME status
• Time income recognition to stay within lower tier thresholds
• Maximise deductions to reduce chargeable income below RM600K
• Claim all available capital allowances in current year
• Utilise brought-forward losses before they expire

Global Minimum Tax (Pillar 2)

From 2025, Malaysia implements the 15% global minimum tax for MNEs with consolidated revenue above EUR 750 million. This affects large multinationals but not typical SMEs.