Tax Update-1998 Budget Issues

Income Tax

  To help ease the burden of the private sector, the Minister of Finance has proposed in the Finance Bill that the rate of income tax imposed on companies be reduced from 30% to 28%.

Consequently, the tax rate for trust bodies, executors of estates of deceased persons who died domiciled outside Malaysia and receivers has also been reduced from 30% to 28%.

The current rate of tax for a non-resident individual of 30% remains unchanged. Similarly, there is no change to the current tax rates for resident individuals.


The chart below compares Malaysia's proposed corporate income tax rate with those of other countries in the region.

 

Comparative Corporation Tax Rates

 
 

Map

 

 

 

 
 

*

The standard corporate tax rate is 25%. Different rates may apply for prescribed industries and priority projects.
 

**

Graduated rates of tax apply, ranging from 10% to 30%.


The above amendment is to be effective from year of assessment 1998.

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