BDCM-B-Week13: Tax Rate of Company and Limited Liability Partnership

Latest tax rate of Company (Sdn Bhd / Berhad) & LLP (Limited Liability Partnership) :

Residence status :

- A company / LLP is tax resident in Malaysia in a basis year, if any time during the basis year, the management and control of its affairs are exercised in Malaysia.

- At least one meeting of the Board of Directors is held in Malaysia concerning the management and control of the company.

Small Medium Enterprise (SME) :

A company / LLP is SME if

a)     Year 2019

                           I.          its share capital not more than RM2.5 million

b)     Year 2020 (Announced from budget 2020)

                           I.          its share capital not more than RM2.5 million, and

                         II.          its turnover(sales) not more than RM50 million

Tips/Comments :

- As last week sharing (Week 12), individual tax rate able to hit a maximum tax rate of 30%. When hit a threshold of more than 17% tax rate, by forming a Company or LLP is a legitimate way of paying lesser tax.

- Always take advantage of remain as SME, enjoy a preferential tax rate of 17% instead of paying 24%.