FAQs - Taxation

TAXATION

1. Do my company need to open a tax file after formation of the company?

• Yes, opening of a tax file is not automatic after formation of the company

2. When should the company need to open the tax file?

• The company need to open the tax file within 3 months from the data of commencement of business.

3. What is date of commencement of business?

• Date of commencement of business is the date when the company start business, this may not be same with the incorporation date

4. What is the corporate tax rate in Malaysia?

• With effect from year 2008 Malaysia corporate tax rate is 26% whereas for the year 2009 onwards the rate will be 25%. However, company with paid up capital lesser than RM2.5 million can enjoy corporate tax rate of only 20% for the first RM500,000.00 net profits

5. Do I need to open company tax file if my company is not yet in business?

• No. You don't need to so until the company have start business.