Why Choose KS Chia & Associates for Your Tax Consultancy Needs?
KS Chia & Associates has been helping Malaysian businesses across various industries since 2003. We understand the unique challenges faced by startups and SMEs, and we are dedicated to providing the comprehensive support you need to achieve your goals. Our team of highly trained tax agents can guide all aspects of taxation, including business, personal, indirect, and other tax services.
As one of the leading tax consultants in Malaysia, we offer a complete range of tax services covering both tax compliance and advisory. Our dedicated team helps Sendirian Berhad, Sole Proprietorship, Partnership, and individuals in all areas of tax legislation, so that you have peace of mind that your tax affairs are up to date and complete.
Our taxation services include:
Preparation and filing of tax returns for companies, limited liabilities partnerships, partnerships and individuals, including advice on tax liability and due date for payment.
Preparation and filing of real property gain tax return
Providing advice on the minimisation of tax liabilities and tax planning opportunities for all types of entity
Preparation of deferred tax computation
Acting on your behalf in discussions with the tax authorities.
Application for Certificate of Residence
Advice on other related tax matters
Contact us today at +603 6258 3692 for a free consultation and see how we can take your business further.
REQUEST PRICING FOR TAX CONSULTANCY SERVICES
What are the Common Taxes in Malaysia?
There are various types of taxes in Malaysia. Understanding these taxes is very important for the potential tax advantages to your business.
Corporate Tax
In Malaysia, corporate income tax is levied on the profits of companies registered in the country. The Income Tax Act 1967 governs this tax and applies to all companies for income derived from Malaysia. This includes income from various sources such as business profits, dividends, interest, rent, royalties, and more.
Personal Income Tax
The personal income tax system applies to Malaysian residents (those who stayed at least 182 days in Malaysia during a calendar year). The tax is levied on various income sources, including:
- Salaries and wages
- Business income
- Dividends, interest, and discounts
- Rental income, royalties, and premiums
- Pensions and annuities
- Employment benefits like company cars, loans, or bill payments
Malaysia’s personal income tax uses the progressive tax rate structure, which means that the tax rate increases as the total taxable income rises. For reference, the current tax rate brackets and corresponding rates can be found on the Inland Revenue Board of Malaysia (IRBM) website.
Stamp Duty
Stamp duty in Malaysia is a tax levied on various legal documents used in financial transactions, including real estate transfers, business transfers, loan agreements, share transfers, and other legal documents. Unlike a flat sales tax, the rate depends on the type of document (fixed duty) or the value of the transaction it represents (ad valorem duty).
There are two types of stamp duty:
- Fixed Duty – A fixed fee charged for specific documents, like individual insurance policies or copies of agreements.
- Ad Valorem Duty – A variable cost based on the transaction value reflected in the document. This applies to documents like property sales agreements and loan agreements.
Real Property Gains Tax
Real Property Gains Tax (RPGT) is a tax levied on the profits generated from the disposal of real estate in Malaysia. This tax applies to both individuals and businesses. RPTG is only applicable when a property is sold at a gain. Hence, if the disposal results in a loss, no tax is payable.
The tax is calculated based on the “chargeable gain,” which is the difference between the disposal price (selling price) and the acquisition price (purchase price). The applicable tax rate depends on the holding period, which is the duration between the property’s acquisition and disposal. Generally, shorter holding periods incur higher tax rates.
Sales & Services Tax (SST)
Malaysia’s Sales and Service Tax (SST) is a consumption tax with two parts:
- Sales Tax – This refers to tax applied to locally made and imported goods.
- Service Tax – This type of tax is charged on taxable services rendered in Malaysia.
Businesses exceeding a threshold (typically RM500,000 annually) supplying taxable goods and services in Malaysia must register for SST.
What are the Different Tax Services in Malaysia?
Managing and maintaining tax compliance can be challenging. Fortunately, a variety of tax services are available to help individuals and businesses navigate the country’s tax system.
Tax Compliance and Advisory Services
These services ensures that businesses and individuals meet their tax filing obligations and pay the correct amount of tax. These services may include tax registration, filing returns, and managing tax audits.
Corporate Tax Compliance Services
These services specifically focus on helping companies comply with corporate income tax regulations. This may involve calculating taxable income, preparing tax returns, and managing communication with the IRBM.
Sales and Services Tax (SST) Services
With the recent implementation of SST, specialised tax services assist businesses with registering for SST, calculating and collecting tax, and filing SST returns.
Personal Tax Services
These services cater to individuals, helping them with filing personal income tax returns, claiming deductions and exemptions, and managing tax obligations.
