Malaysia
Malaysia: 5 company types, its taxes, banking and business environment, and what it is known for.
Forming a company
Company types in Malaysia
The 5 forms a founder can choose here, each with its own figures. Open one for its sources.
What it is known for
Where Malaysia is in the world’s top 10 on a measure anyone can check, the best rank first. Only the top is shown; a low rank is never stated.
- World’s1stWorld-leading exports Instruments for measuring electricityOscilloscopes, spectrum analysers and other instruments and apparatus for measuring or checking electrical quantities, excluding meters of heading 9028; instruments and apparatus for measuring or detecting alpha, beta, gamma, X-ray, cosmic or other ionising radiationUS$6.3 bn · 18.5% of world exports of 204 exporters · 2024 CEPII BACI, January 2026 release See the top 10
- World’s2ndWorld-leading exports Palm oilPalm oil and its fractions, whether or not refined, but not chemically modifiedUS$15.1 bn · 34.4% of world exports of 143 exporters · 2024 CEPII BACI, January 2026 release See the top 10
- World’s2ndWorld-leading exports Semiconductors, solar cells and LEDsSemiconductor devices (for example, diodes, transistors, semiconductor-based transducers); photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED), whether or not assembled with other light-emitting diodes (LED); mounted piezo-electric crystalsUS$10.6 bn · 7.8% of world exports of 201 exporters · 2024 CEPII BACI, January 2026 release See the top 10
- World’s5thLogistics and freight Container port traffic28.3 million TEU of 118 economies · 2021 World Bank, World Development Indicators See the top 10
- World’s7thResearch and technology High-technology exportsUS$134.8 bn of 123 economies · 2024 World Bank, World Development Indicators See the top 10
A rank is among everything the source reports for that year, so it moves when the source adds or drops economies. Exports include goods passing through for re-export. Nothing here is a recommendation.
Doing business here
Business accounts
Providers whose own published list of countries names Malaysia. A listing means a company formed here may apply, not that it will be accepted.
Not in our records No provider's country list has been read for Malaysia.
EU listings
Two lists a bank checks when it opens an account for a company or its owner.
- EU high-risk third countries (AML)
- Not listed
- EU non-cooperative jurisdictions for tax purposes
- Not listedOfficial EUR-Lex, 52026XG01465, Annex I as of 2026-02-17
Official sites
The authorities’ own sites for Malaysia: where to register, file and check.
Blocs and agreements
The trade arrangements Malaysia belongs to, as each arrangement’s own texts state them: since when, and what each covers. What a membership means for a business is for you to judge.
- ASEAN Free Trade Area (ATIGA)
- Free trade area · since 17 May 2010
Covers goods.
Quote
ASEAN means the Association of Southeast Asian Nations, which comprises Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, Lao PDR, Malaysia, the Union of Myanmar,
- Regional Comprehensive Economic Partnership
- Free trade area · since 18 March 2022
Covers goods, services, investment.
Quote
1 January 2022 Australia, Brunei Darussalam, Cambodia, China, Japan, Lao PDR, New Zealand, Singapore, Thailand, Viet Nam
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership
- Free trade area · since 29 November 2022
Covers goods, services, investment, public procurement.
Quote
any State or separate customs territory may accede to this Agreement, subject to such terms and conditions as may be agreed between the Parties and that State or separate customs territory.
Regional and customs arrangements only, 36 of them; bilateral trade agreements are not yet in our records.
Tax
Company tax
Tax, and what the company owes the registry each year.
- Corporate income tax
- 24%
- Distributions
- Not in our records
- Audit
- Financial statements are required to be audited; companies meeting the qualifying criteria may be exempted from audit (SSM comparison of business entities).
- Small-company relief
- Not in our records
- Annual obligations
- Not in our records
- Annual registry fee
- MYR 150Official The registry or ministry page as of 2026-10-10
Quote
Lodgement of annual return under section 68 of the Act: (a) private company (b) public company 150.00 500.00
Sales and consumption tax
The tax on what the company sells in Malaysia, and when it must register, as the tax authority states it.
- The tax
- SST (Sales and Service Tax)
Quote
Rate of tax is amended to :- 6% (1 Sept 2018 – 29 Feb 2024) 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
- Standard rate
- 8%
Service tax is 8% from 1 March 2024, and 6% for food and beverage, parking, logistics and telecommunications. Sales tax on taxable goods is 10% unless the goods are listed for 5% or exemption; a foreign provider of digital services charges 6%.
Quote
Rate of tax is amended to :- 6% (1 Sept 2018 – 29 Feb 2024) 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
- Other rates
- 6% Service tax on food and beverage, parking, logistics and telecommunications services, and on digital services supplied by a foreign registered person
- 5% Sales tax on goods listed in the Sales Tax (Rate of Tax) Order 2025
Quote
Rate of tax is amended to :- 6% (1 Sept 2018 – 29 Feb 2024) 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
- Registration threshold
- MYR 500,000 · about €109,068
sales value of taxable goods for sales tax; service tax thresholds are set per service group, and a foreign digital service provider registers above RM500,000; 12 months
Quote
Taxable goods manufacturers are required / liable to be registered when; SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for 12 months period
- Voluntary registration
- Yes
A manufacturer of taxable goods below the RM500,000 threshold may register voluntarily under section 14 of the Sales Tax Act 2018.
Quote
Voluntary registration is permitted under Section 14 of the Sales Tax Act 2018, provided that you are engaged in the manufacturing of taxable goods and the total value has not reached the threshold amount of RM500,000.00.
- A foreign company
- The same threshold applies
A person outside Malaysia supplying digital services to consumers registers with the Royal Malaysian Customs Department once the value of those services passes RM500,000, and files for a three-month taxable period. Nothing read states whether a representative must be appointed, and the position for a foreign supplier of services other than digital services is not stated on these pages.
Quote
A Foreign Service provider is liable to be registered if his total value of digital services provided to consumer has exceeded the prescribed threshold of Ringgit Malaysia five hundred thousand.
- Returns filed
- Depends on the business
Quote
Returns must be filed once every two months (according to the taxable period).
- Tax authority
- Registration page read 2026-10-22
Tax calendar
When the main returns and payments fall due in Malaysia, tax year 2025, as the tax authority states it.
- Corporate tax return
- 7 months after the end of the accounting period · each year
a company files Form C within seven months from the date following the close of the accounting period that is its basis period; a return furnished through e-Filing within the following month is treated as on time. The page states no weekend rule. The page is a PDF; its text digest is recorded as a bytes hash.
Quote
Within 7 months from the date ... following the close of the accounting ... period for the year of assessment
- Corporate tax, final payment
- 7 months after the end of the accounting period · each year
the balance of tax (if any) is payable by the same last day as Form C, within seven months from the date following the close of the accounting period; the one-month e-Filing grace period applies to the payment of the balance of tax as well as to the return.
Quote
Within 7 months from the date ... following the close of the accounting ... period for the year of assessment
- Corporate tax, instalments
- 15 February · each month
a company pays the estimated tax in twelve monthly instalments; the due date for each instalment is the 15th day of the calendar month, the first on 15 February and the last on 15 January of the following year; the rule records the first instalment.
Quote
The due date for each installment is the 15th day of the calendar month, as specified under subsection 107C(12) of the ITA.
- Personal income-tax return
- 30 April · each year
an individual with only employment and other income files the return form on or before 30 April of the year following the year of assessment; an individual carrying on a business files Form B by 30 June. A 15-day grace period applies to returns furnished through e-Filing.
Quote
Individuals with Employment Income and Other Income (not carrying on business) before or on April 30th in the year following a year of assessment
- Personal income tax, final payment
- 30 April · each year
the balance of tax is paid on or before 30 April where the return is submitted on paper, or 15 May where it is submitted through e-Filing, in the year following the year of assessment; an individual carrying on a business pays by 30 June (paper) or 15 July (e-Filing). The rule records the paper deadline for a taxpayer without business income.
Quote
30 April if the Tax Return Form is submitted manually (paper form). 15 May if the Tax Return Form is submitted through e-Filing
- Personal income tax, instalments
- Set each year by decree · every two months
an individual who earns income other than employment income pays an estimated tax by instalments (CP500) six times a year commencing from March; the amount and dates are estimated by the Board and notified on the CP500 notice, and each instalment is payable within 30 days. The authority's own CP502 schedule shows the payable dates as 1 March, 1 May, 1 July, 1 September, 1 November and 1 January, which are the dates recorded here.
Quote
Taxpayer who earns other than employment income such as business, rental and royalties must pay the instalment twice a month up to 6 times commencing from March every year.
- VAT return
- Not levied here
Malaysia levies no VAT or GST: the Goods and Services Tax was repealed on 1 September 2018 and replaced by the Sales and Service Tax (SST), administered by the Royal Malaysian Customs Department. The SST-02 return, for each two-month taxable period, and the tax are due not later than the last day of the month following the taxable period. No VAT/GST return exists to state.
Quote
The return must be submitted not later than the last day of the month following the end of the taxable period
- Payroll withholding
- Day 15 of the following month · each month
an employer deducts the monthly tax deduction from remuneration and remits it to the Board on or before the 15th day of the month following the month of deduction. The employer's annual return (Form E) is due 31 March of the following year.
Quote
remit the amount of MTD to the IRBM(HASiL) on or before the 15th day of the subsequent month
Running the company
Running a company here
Not in our records The authorities’ pages on running a company have not been read for Malaysia yet.
Economy and trade
What it exports
Goods Malaysia exported, by product, as a share of its goods exports each year. Exports include goods passing through for re-export. A share describes Malaysia’s own trade; it does not compare places.
| Product (HS heading) | 2022 | 2023 | 2024 | Value, 2024 |
|---|---|---|---|---|
| Electronic integrated circuits HS 8542 | 20.6% | 19.4% | 18.7% | US$76.1 bn |
| Petroleum oils and oils obtained from bituminous minerals, crude HS 2709 | 3.8% | 4.9% | 11.5% | US$46.7 bn |
| Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils HS 2710 | 10.2% | 10.6% | 7.8% | US$31.8 bn |
| Petroleum gases and other gaseous hydrocarbons HS 2711 | 5.6% | 4.9% | 4.2% | US$17 bn |
| Palm oil and its fractions, whether or not refined, but not chemically modified HS 1511 | 4.6% | 3.9% | 3.7% | US$15.1 bn |
| Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528 HS 8517 | 3.0% | 2.8% | 2.7% | US$10.9 bn |
| Automatic data-processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included HS 8471 | 2.1% | 2.0% | 2.7% | US$10.8 bn |
| Semiconductor devices (for example, diodes, transistors, semiconductor-based transducers); photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED), whether or not assembled with other light-emitting diodes (LED); mounted piezo-electric crystals HS 8541 | 2.4% | 3.4% | 2.6% | US$10.6 bn |
| Discs, tapes, solid-state non-volatile storage devices, smart cards and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37 HS 8523 | 1.7% | 1.2% | 1.9% | US$7.8 bn |
| Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in note 11(C) to this chapter; parts and accessories HS 8486 | 1.2% | 1.6% | 1.8% | US$7.4 bn |
Total goods exports, 2024: US$407.6 bn. The ten largest headings are shown.