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MY · Accounting & Tax

Accounting & Tax
Malaysia

Accounting and tax advisory for your Malaysia Sdn Bhd or Labuan Company, 100% remote. You see every return before we file it, and we keep track of the deadlines with SSM, LHDN and the Labuan authorities for you.

Pathfinder
Malaysia
Corporate Tax15–24%
Service Tax8% / 6%
Tax YearFlexible
Labuan3% on audited trading profits

Last updated: 10/2026

Overview

Why Malaysia?

We look after two structures: the Malaysian Sdn Bhd (standard rate 24%) and the Labuan Company. Labuan is a separate jurisdiction with its own tax law: Labuan trading companies pay 3% on audited profits, provided they meet the substance requirements. For the Sdn Bhd, companies with paid-up capital of up to RM 2.5 million and gross business income of up to RM 50 million pay 15% on the first RM 150,000 of profit and 17% up to RM 600,000.

Service tax has generally been 8% since 1 March 2024, and 6% for some services such as logistics, telecommunications and food and beverage; goods are subject to sales tax. Registration is only mandatory from an annual turnover of RM 500,000. Malaysia has double taxation agreements with countries including Germany and Switzerland.

Strasia Group handles accounting and tax for your company in Malaysia or Labuan: ongoing bookkeeping, SSM annual reports and the LHDN tax return.

What applies to your company in Malaysia and Labuan

Labuan: 3% on audited trading profitsLabuan trading companies pay 3% on audited net profit if they meet the Labuan substance requirements. Pure holding companies (non-trading) are treated separately under Labuan tax law.
SME rates for the Sdn BhdWith paid-up capital of up to RM 2.5 million and gross business income of up to RM 50 million: 15% on the first RM 150,000 of profit, 17% up to RM 600,000, 24% above.
MM2H and a companyCompany formation and the MM2H visa can be combined. MM2H covers long-term residence; residence permission is not work permission. Whether and how you may work in Malaysia is something we clarify before the application.

Our Accounting Process

01

Secretary & Auditor

One-off

Appoint a licensed company secretary and auditor: mandatory for all Sdn Bhd companies.

02

Ongoing Bookkeeping

Ongoing

Monthly recording per MFRS (Malaysian Financial Reporting Standards).

03

Employee Returns

Ongoing

Management of monthly payroll and social security contributions (EPF, SOCSO, EIS).

04

SSM & LHDN Filing

Annual

Filing with SSM (annual return) and LHDN (tax return); we keep track of the deadlines for you.

Frequently Asked Questions

What is the difference between Sdn Bhd and Labuan?
A Sdn Bhd is a Malaysian onshore company (24% tax). A Labuan company is an international structure on Labuan Island (3% on audited profits from trading activity, with substance on site), primarily suitable for international business and as a personal holding company.
What accounting software does Strasia Group use?
We use modern cloud-based accounting software such as QuickBooks and Xero. Documents can be submitted via Google Drive, Dropbox or post. Communication is via WhatsApp, Telegram and email.
Do I need to appoint a local auditor?
Yes. All Sdn Bhd companies must appoint a licensed Malaysian auditor. We help you with selection and coordination.
When is the tax return due in Malaysia?
The annual corporate tax return must be filed within 7 months after the financial year end with the Inland Revenue Board (LHDN). Monthly advance payments are due by the 10th of the following month.
What are the tax benefits of a Labuan Company?
Only under conditions: Labuan trading activity is taxed at three percent on audited profits, provided the Labuan substance requirements are met. Pure investment holding (non-trading) is treated separately under Labuan tax law and may be outside the Labuan tax charge. If the company is managed from Germany, Austria or Switzerland, it may be taxable there, and distributions are usually taxed in the shareholder's country of residence. Labuan is mainly suited to international holding structures and trading companies.
Can Strasia handle bookkeeping fully remotely?
Yes. We handle all bookkeeping, SST returns, annual accounts and tax filing fully remotely; you do not need to travel to Malaysia for it.
What are the tax filing deadlines in Malaysia?
Malaysian companies must file their corporate tax return (Form C) with LHDN (Inland Revenue Board) within 7 months of the financial year end. Estimated tax payments (CP204) are due monthly and must be submitted 30 days before the start of the financial year. SST (Sales & Service Tax) returns are due bi-monthly.

First call about your accounting

Free initial consultation: 60 minutes, no obligation. We quote our own fees in a written offer before any engagement; government fees are shown separately.

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Corporate tax compared

Standard rates on the company’s profit

Malaysia24%

standard rate; SMEs pay 15% on the first RM 150,000 and 17% up to RM 600,000

Hong Kong8.25% / 16.5%

Profits tax, two-tier: 8.25% up to HKD 2 million profit

Singapore17%

Corporate income tax, partial exemptions only for qualifying income

Dubai (UAE)9%

on the part above AED 375,000; 0% below it and on qualifying free-zone income

Labuan3%

on audited net profit from Labuan trading activity, with substance on site

USA21%

federal rate for corporations, plus state tax where due; an LLC is taxed differently

Germany~30%

15% corporate tax plus solidarity surcharge and trade tax

Netherlands19% / 25.8%

19% up to EUR 200,000 profit

France25%

What you pay yourself depends on where you live and where the company is actually managed. As of 22 Oct 2026, sources: IRD · IRAS · FTA (VAE) · LHDN · IRS · Belastingdienst · impots.gouv.fr

Tax Comparison: Malaysia vs. Global Hubs

Corporate Tax15–24%
GST8% / 6% (service tax)
Capital Gains Tax10% (unlisted shares)
1 / 5

Corporate tax rates checked on 22 Oct 2026 (LHDN, IRD, IRAS, FTA, IRS); other figures as of 2026, subject to change. Zero rates apply only to the tax named and under conditions. What you pay yourself depends on your residence and the place of management.

Our Office

Contact our Labuan, Malaysia Team

Tell us what it is about: company formation, accounting and tax, or a visa. You will hear from us within one business day.

Strasia Group · Labuan, Malaysia

Office

Unit B, Lot 49, 1st Floor
Block F, Lazenda Warehouse 3
Jalan Ranca-Ranca
87000 Federal Territory of Labuan
Malaysia

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