Income tax for companies & businesses in Malaysia

It is the duty of each and every company carrying a business license to properly & regularly update accounts and statements. Malaysia’s Income Tax Return Form (ITRF) is the document needed for each and every business (in this case, referred to as the “Taxpayer”) to the Inland Revenue Board of Malaysia, or LHDN Malaysia.

Income Tax for Companies Registered in Malaysia

There are 5 different types of tax return forms that are required in Malaysia for companies:

  1. Form C&R 2009 – Income Tax Return Form for general companies.
  2. Form C1 2009 – Co-orperative Society (further in Company Limited by Guarantees – Type of Business Entities in Malaysia)
  3. Form TC 2009 – Unit/Property Trusts
  4. Form TA 2009 – Trust Bodies
  5. Form TR 2009 – Real Estate Investment Trust / Property Trust Funds

The due date for submitting your ITR form is usually within 7 months AFTER the close of accounting period. Details of the accounting closing date are as followed:

For general companies with Form C&R:

Left column shows “Accounting periods ending” and right (separated by #) shows the “date of general issue“:

  • January – March 2009 # April 2009
  • April – June 2009 # July 2009
  • July – September 2009 # October 2009
  • October – December 2009 # January 2010

For the rest of the Forms:

  • 1st June 2009

Tax Matters

In Malaysia, there are THREE (3) positions who are responsible for Tax Matters of the company:

  1. Company Secretary
  2. Directors
  3. Principle Officer or Managers of the Company

Tax Rates

For the assessment year of 2009:

  1. Companies with paid-up capital of LESS than RM2.5 million (for the first RM500,000) is charged at 20%.
    Subsequent balances are charged at 25%
  2. Companies with paid-up capital of MORE than RM2.5 million is charged at 25%

Please contact us if you have further questions regarding taxation or any other financial information that’s not available on this post.