Malaysia - Taxation

Income tax is levied on all individual and corporate income accrued in Malaysia during the previous year. As of 2000, income of resident individuals is taxed at rates ranging from 2% to 29%. Resident and nonresident companies are charged a flat rate of 28%. A 38% income tax is levied on petroleum corporations.

Incentives are available for pioneer industries and for certain capital investments. Capital gains taxes are levied on real estate. Indirect taxes include a general 10% sales tax (5% for more essential items, and 15% for liquor and cigarettes), and a services tax.