Malaysia Company Tax Rates: SME 15% and 17% Bands, 24% Standard Rate
Last verified: 28 October 2026 against HASiL's company tax rate page. Short answer: For YA 2023 to 2024 (the latest years on HASiL's page), a company with paid-up capital of not more than RM2.5 million and gross business income of not more than RM50 million pays 15% on the first RM150,000, 17% on RM150,001 to RM600,000 and 24% on the rest; other companies pay 24% [HASiL company tax rates].
Talreon is an independent publisher and is not affiliated with LHDN / HASiL (Lembaga Hasil Dalam Negeri Malaysia, the Inland Revenue Board). This page explains the process in our own words; the agency's own website and notices are the final word.
Current SME rates (YA 2023 – 2024)
| Chargeable income | Qualifying company* | Other companies |
|---|---|---|
| First RM150,000 | 15% | 24% |
| RM150,001 to RM600,000 | 17% | 24% |
| Above RM600,000 | 24% | 24% |
*Paid-up capital not more than RM2.5 million and gross business income not more than RM50 million [HASiL company tax rates]. HASiL's page does not list further conditions; check its public rulings before relying on the SME rate. HASiL's page had not yet added a YA 2025 or 2026 heading when we checked.
Earlier rates
| Year of assessment | Qualifying SME | Standard rate |
|---|---|---|
| 2020 – 2022 | 17% on first RM600,000 | 24% |
| 2019 | 17% on first RM500,000 | 24% |
| 2017 – 2018 | 18% on first RM500,000 | 24% |
| 2016 | 19% on first RM500,000 | 24% |
| 2009 – 2015 | 20% on first RM500,000 | 25% |
Source: [HASiL company tax rates].
Worked example (our own arithmetic)
A qualifying company with RM400,000 chargeable income: 15% × RM150,000 = RM22,500, plus 17% × RM250,000 = RM42,500, so RM65,000 in total (an effective 16.25%). At the flat 24% it would be RM96,000.
Filing deadline
Companies file Form e-C within 7 months from the day after their accounting period closes, with a 1-month grace period for e-Filing [HASiL RF Filing Programme 2026].
Comparing a sole proprietorship with a Sdn Bhd? See personal income tax rates, Sdn Bhd registration fees and e-Invoice rules.
Frequently asked questions
What is the SME tax rate in Malaysia?
15% on the first RM150,000 and 17% on RM150,001 to RM600,000 for companies with paid-up capital of not more than RM2.5 million and gross business income of not more than RM50 million; 24% on the balance.
What is the standard company tax rate?
24%.
When must a company file Form C?
Within 7 months after the close of its accounting period, plus a 1-month grace period for e-Filing.
Did the SME rate change recently?
From YA 2023 HASiL lists a 15% band on the first RM150,000; for YA 2020 to 2022 it was 17% on the first RM600,000.
Where to check it yourself
Talreon is not affiliated with LHDN / HASiL (Lembaga Hasil Dalam Negeri Malaysia, the Inland Revenue Board). Figures and steps on this page were checked against the linked pages on 28 October 2026. Read our editorial and review process and figures update log. Spotted something out of date? Email support@talreon.com with the page address.
Change log: 28 October 2026 – first published. Educational information only; not tax, financial or legal advice.