Budget 2014: Corporate tax rate reduced to 24%


corporate-tax-rate-24-percentTo support the smooth implementation of GST and to further enhance the competitiveness of Malaysia, the corporate tax rate will be reduced by 1%, from current 25% to 24%, with effect from year of assessment 2016 onwards. This means company tax reduction will be effected only after 1.5 years from the date of GST implementation (1 April 2014).

For SME company with paid up capital up to RM2.5 million, the rates will also be reduced by 1% as follows:


i. 19% on chargeable income up to RM500,000 (reduced from 20%)

ii. 24% on the remaining chargeable income (reduced from 25%).

Effective date: From year of assessment 2016 onwards.