e-Daftar is an application that facilitates taxpayers through online registration of tax file in Malaysia. Income tax files of companies, employers, individuals, partnership and limited liability partnership (LLP) can be registered via e-Daftar.
e-Daftar is an application that facilitates taxpayers through online registration of tax file in Malaysia. Income tax files of companies, employers, individuals, partnership and limited liability partnership (LLP) can be registered via e-Daftar.
The following entities and accounting firms in Malaysia must file their taxes:
The documentations vary from different categories as discussed below:
OR
Complete list of partners and any required documents like their ID papers.
Tax registration can be done with the help of an auditing firm in Malaysia as it will guide you throughout the process of tax registration and tax filing and inform you about the tax incentives available in Malaysia. However, the tax registration can also be done individually as well because the whole process is smooth and efficient.
After you have filled the forms and attached the required documents, they can be sent via:
After you have completed the application and the submission is accepted online, you will get the reference number in 3-4 working days.
The application status can be examined online by entering your application number in e-Daftar.
In Malaysia, the rates without availing any tax incentives are:
In terms of the income tax system, Malaysia has adopted a unique territorial system of taxation. Any person or company, local and foreign, are subject to income tax for any income accruing in or derived from Malaysia or received in Malaysia. However, certain exemption from income tax is available for certain type of income.
For example, foreign source income received in Malaysia is exempted from income tax as stated in the local tax law except for banking, insurance companies and air/sea transportation companies. Meanwhile, capital gain is not subject to income tax but certain gain may subject to Real Property Gains Tax in Malaysia.
Individual tax have to be paid by the local residents as well as non-residents of Malaysia for income generated from Malaysia. According to the law, generally, a person who has lived in Malaysia for at least 182 days is declared a tax resident in Malaysia.
Petroleum operations business in Malaysia is subject to petroleum income tax, which is about 38% of the total revenue generated through fuel operations and income tax rate of 24% applies to petroleum functions in fields.
In Malaysia, no state, provincial, or local government has imposed taxes on income.
Small companies, as well as auditing firms, if fulfilled certain criterias, would be able to enjoy massive tax incentives in Malaysia. Company incorporated in Malaysia with shareholder’s funds not exceeding RM 500,000 and has at least 60% of Malaysian ownership is eligible for certain tax incentive such as Pioneer Status which company can get a 100% tax exemption for a period of five years so it can thrive in the competitive market.
Another available tax incentive is the Investment Tax Allowance where 60% of the qualifying capital expenditure incurred within five (5) years can be offset against its statutory income. A sole proprietor or partnership is eligible to apply for the incentives provided that a new private limited/limited company is formed to take over the operations/activities of the existing production/activities.
Have more questions regarding the registration of company tax file in Malaysia? Feel free to get in touch with us.