News & Insights/Malaysia Regulatory & Tax Updates (2026)
Regulatory & Tax3 min read
Malaysia

Malaysia Regulatory & Tax Updates (2026)

Malaysia's 24% corporate tax rate, SST indirect tax framework, and broad foreign ownership permissions make it a practical and accessible jurisdiction — with the Sdn. Bhd. remaining the go-to incorporation vehicle.

Corporate Tax

The standard corporate tax rate is 24%. SME rates of 15% and 17% are available for qualifying companies, though these are not available where foreign ownership exceeds 20%.

Indirect Tax

Malaysia operates a Sales and Service Tax (SST) regime. Sales Tax ranges from 5% to 10% depending on the category of goods; Service Tax ranges from 6% to 8%.

Ownership

100% foreign ownership is permitted in most sectors, making Malaysia one of the more open markets in Southeast Asia for foreign direct investment.

Structures

The Sdn. Bhd. (Sendirian Berhad, or private limited company) remains the standard and most widely used incorporation vehicle for both local and foreign-owned businesses.