Tax Advice and Planning in Malaysia

Updated on Thursday 24th November 2022

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Companies established in Malaysia have to comply with the local taxation system; there are several taxes which have to be paid by companies carrying out business activities here; our team of Malaysian legal consultants can offer assistance to foreign investors, who are not accustomed to the rules and regulations of the tax legislation

The list below highlights the main types of services related to tax advice and planning in Malaysia:
  1. Tax preparation: services related to all matters regarding the submissions to the Malaysian tax authorities. We can help you prepare and submit tax returns. In case you need this service in another country, for example in Malta, we can put you in contact with our partners.
  2. Tax planning: adequate solutions for businesses, according to size and the requirements in Malaysia. We can help you streamline activities such as mergers and acquisitions in Malaysia from a taxation point of view. Moreover, we can advise on tax effective financing and re-financing.
  3. Tax reductions: adequate and effective tax reduction for companies, according to double tax treaties, the minimized withholding tax rates for dividends and others.
  4. Offshore taxation: Labuan is an offshore financial center in Asia and our team of lawyers can help you enjoy the zero-tax policies in this location.
Our lawyers can help you with more information about these services and can help you with tailored services that will suit your tax needs while doing business in the country. Tax planning and preparation can be directed towards businesses and individuals alike. We invite you to get in touch with one of our attorneys in Malaysia for an initial consultation on tax matters.

Taxation procedure applicable in Malaysia  

Companies in Malaysia, regardless of their business field, are required to pay their respective taxes to the Inland Revenue Board. Our team of lawyers can offer a wide range of tax services; at the same time, our agents can provide legal advice on the way in which taxes can be minimized in Malaysia, by using legal methods. 

Our lawyers can offer assistance in tax compliance matters; the corporate tax in Malaysia is paid according to a self-assessment system. When filing for corporate tax, it is necessary to calculate the taxes by including all the tax deductions that are available under the Malaysian legal system; also, it is compulsory to prepare company’s documents, attesting the tax level to which the company is liable to. We can also provide information on how the VAT regime applies in the country.

It is important to know that Malaysian authorities provide numerous tax incentives and deductions, mainly available for small and medium-sized companies. 

Our Malaysian consultants can advise foreign investors to what type of incentives their company will qualify to and which are the main advantages on a short or long term. 

We invite you to watch the following video for more information on tax planning in Malaysia


Tax planning in Malaysia 

Tax planning in Malaysia refers to the methods applied by the company’s management, alongside tax experts, who can establish a taxation strategy that can reduce the costs of the business. 

As a general rule, a foreign company operating in Malaysia can benefit of the provisions of the double taxation treaties signed by the state and other contracting states, as long as the company is a direct beneficiary of such an agreement. 

If you are interested in immigration to Malaysia, we advise you to contact our local lawyers. You will be able to benefit from such specialized legal advice regarding the formalities of obtaining a visa. Relocation can be a fairly simple process if you have the necessary visa and also apply for a residence and work permit in this country. Contact us for legal assistance for your situation.

Foreign businessmen who need more information on the taxation services available in Malaysia may contact our law office for assistance on this matter.