Malaysia Corporate Income Tax Calculator for YA 2020

Assessment of income in Malaysia is done on a current-year basis. It is important to note that the burden of computing tax liabilities accurately is on the company and accordingly, tax payers are expected to compute taxes while obeying taxation laws and guidelines issued by the Malaysian Inland Revenue Board (IRB). Under the self-assessment system, companies are also required to submit a return of income within seven months from the date of closing of accounts. The tax return is deemed to be a notice of assessment and is deemed served on the company on the date the tax return is submitted. Companies may also choose to use 'e-filing’ or online filing of tax returns via the Internet as encouraged by the IRB. At 3E Accounting, we understand that tax compliance is necessary and are here to assist your company in this important task. With our Malaysia corporate income tax calculator, you will be able to get quick tax calculation adjustments that help you to estimate and accurately forecast your tax payable amounts.

 

Malaysia Corporate Income Tax Calculator for YA 2020 and After

On 11 October 2019, YB Lim Guan Eng, the Minister of Finance, unveiled the Malaysian Budget 2020. Certain corporate tax schemes have thus been changed, and/or will change based on budget proposals. Important proposals include:

• SME Chargeable Income Limit Up to RM600,000: To further support the growth of SMEs and to ensure the lower income tax rate benefits only the eligible SME, it is proposed that the chargeable income limit which is subject to 17% tax rate be increased from up to RM500,000 to up to RM600,000. However, with effect from the year of assessment 2020, only companies with a paid-up capital (or capital contribution, for LLPs) of up to RM 2.5 million and annual sales not exceeding RM 50 million will be eligible for this tax treatment.
• Capital Allowance on SVAs Up to RM2,000: It is proposed that SMEs and non-SMEs be able to claim capital allowance on Small Value Assets (SVAs) valued up to RM 2,000 each instead of RM 1,300Furthermore, with effect from the year of assessment 2020, it is proposed that the limit of qualifying capital allowance eligible to be claimed by non-SME be increased from RM13,000 to RM20,000.
• Up to RM15,000 Tax Deduction for Corporate Secretarial Fees: To enhance tax compliance and to ensure good governance while providing flexibility to taxpayers, it is proposed that tax deduction limit on expenses incurred on secretarial fee and tax filing fee be combined and allowed up to RM15,000 each year of assessment. Currently, a taxpayer may claim a maximum amount of RM 5,000 and RM10,000onsecretarial fees and tax filing fees respectively for each year of assessment.
• Tax Deductions on Cost of Listing in Bursa Malaysia: In assisting technology-based companies and Small and Medium Enterprises to grow their businesses by raising additional capital through listing in ACE Market or LEAP Market, it is proposed that tax deduction of up to RM1.5 million be given for the following listing costs: - fees to authorities - professional fees - underwriting, placement and brokerage fees

 

How It Works

1. About This Malaysia Corporate Income Tax Calculator: This corporate income tax calculator will work out tax rates, obligations and projected tax payables.
2. When to Use This Calculator:
   1. Once you know your company total taxable income.
   2. When your company wants to calculate the income tax return.
3. What You Will Need: Company’s profit / chargeable income of your company for the tax calculation.