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.