Malaysia Hotline: +603- 2141 8908
Small and Medium Enterprises(SMEs)
Effective from the Year Assessment 2009, for the purpose of
imposition of income tax and tax incentives, the definition of SMEs is reviewed
as a company resident in Malaysia with a paid up capital of ordinary shares of
RM2.5 million or less at the beginning of the basis period of a year of
assessment whereby such company cannot be controlled by another company with a
paid up capital exceeding RM2.5 million. SMEs are eligible for a reduced
corporate tax of 20% on chargeable incomes of up to RM500,000. The tax rate on
the remaining chargeable income is maintained at 25%.
Small Scale Manufacturing Companies
Small scale manufacturing companies incorporated in Malaysia
with shareholders' funds not exceeding RM500,000 and having at least 60%
Malaysian equity are eligible for the following incentives:
i. Pioneer Status with income tax exemption of 100% of the
statutory income for a period of five years. Unabsorbed capital allowances as
well as accumulated losses incurred during the pioneer period can be carried
forward and deducted from the post pioneer income of the company; or
ii. Investment Tax Allowance of 60% on the qualifying
capital expenditure incurred within five years. This allowance can be offset
against 100% of the statutory income for each year of assessment. Any
unutilised allowances can be carried forward to subsequent years until fully
utilised.
A sole proprietorship or partnership is eligible to apply
for this incentive provided a new private limited/limited company is formed to
take over the existing production/activities.
To qualify for the incentive, effective 2 March 2012, a
small-scale company has to comply with the following criteria:
i. The value-added must be at least 25%; and
ii. The managerial, technical and supervisory (MTS) ratio
must be at least 20%
The company shall carry out the manufacture of products or
participate in activities listed as promoted products and activities for
small-scale companies
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my