Liable to Malaysian tax when it carries on a business through a permanent establishment in Malaysia and assessable on income accruing in or derived from Malaysia.
| Types of income | Rate (%) |
|---|---|
| Business Rental | 25 |
| Dividend (Franked) Dividend (Single tier)* | 25 0 |
| Entertainer's professional income | 15 |
| Interest | 15 |
| Royalty | 10 |
| Special classes of Income: | |
| 10 |
| 10 |
| 10 |
| Real Estate Investment Trust (REIT) | |
| 10 |
| 25 |
| 10 |
| Effective from 01/01/2007 | |
*With the introduction of the single tier dividend system effective 1.1.2008, all dividends are tax free in the hands of the shareholders.However companies with section 108 credit under the old imputation system are given a transitional period until 31.12.2013 to frank normal dividends so as to enable them to exhaust their section 108 credit.
