Taxation Services in Kuala Lumpur, Malaysia
As one of the most booming economies in Southeast Asia, Malaysia has become one of the top destinations to build and expand businesses. However, when entrepreneurs and investors need to be familiar with the country’s taxation system to operate smoothly.
Essentially, all income incurred in, obtained from, or remitted to the country is liable to tax. The five types of taxes that businesses need to be familiar with are corporate income tax, property tax, goods and services tax, income tax, and withholding tax. Bestar Consulting will help you navigate the taxation system through our various taxation services.
Corporate Income Tax and Planning Services
This tax applies to resident and foreign organizations participating in business activities and generating income within Malaysia. As mentioned, any money incurred in or remitted to the country is taxable; thus, a company gaining profit needs to pay Corporate Income Tax. Depending on the industry and the type of business, the conditions and rates for this tax vary. Generally, this tax is payable through a 12-month installment plan, beginning in the second month of the financial year.
To avoid inconveniences and penalties, Bestar Consulting provides a customized tax compliance service to meet all your business needs. Whether it’s an independent tax compliance review or a special technical request, we will assist you in handling your corporate taxes so you can focus on running your business.
Application of Certificate of Residence in Malaysia
A Certificate of Residence (COR) is an official document issued by the Inland Revenue Board of Malaysia (IRBM) to residents and immigrants of Malaysia to confirm the taxpayer’s residence status for taxation purposes. So, if you decide to move to Malaysia to grow your business, this is something that you should consider.
Since Malaysia has a Double Taxation Agreement (DTA), having this certificate on hand prevents you from being taxed twice while enabling you to claim certain tax benefits.
You can apply for a COR manually by submitting an application form to any branch of the IRBM. Expect the process to take up to 14 business days.
Goods and Services Tax
Since Malaysia doesn’t have Value Added Tax in their system, they’ve replaced it with the Goods and Services Tax (GST). The rate for this tax is 6%, and it comprises both service tax and sales tax. GST is applied throughout every step of the process, from the production phase to the distribution of goods.
Income Tax Filing
Income tax is mandatory for income-generating individuals and organizations. When you earn from Malaysia, a portion of your income will be remitted to the country, where the government will use it to serve the public. That said, it’s important that you properly file your income tax so you can determine if you owe any taxes or if you’re eligible for a tax refund.
Withholding Tax Services
If you’re a business owner looking to start a business in Malaysia, you might encounter withholding tax. To give you a better idea, a withholding tax is a portion of your profit or income withheld from you. At present, the withholding tax rate is 10%. That means 10% of your supposed profit will be given to the government to cover payments like interest, royalty, contract payment, and special income classes.
This is a chargeable stamp duty that is used on certain documents and agreements. It’s used to verify information that can be used as evidence during civil proceedings. The rate of e-stamping varies depending on the nature of the documents, and the values transacted. A document will be stamped within 30 days of either its execution from or arrival to Malaysia. If it has not been stamped during the given timeframe, a penalty will be imposed.
Tax Clearance Application
As the name suggests, Tax Clearance (Surat Penyelesaian Cukai-SPC) is a certified letter from the IRBM that indicates whether the receiver has an outstanding balance of income tax return. Once received, the receiver should settle the balance as indicated in the certificate. This applies to both locals and foreigners.