Sole Proprietorship Taxes Malaysia

Depending on your nature of business you can register as sole proprietorship partnership limited liability partnership or company.

Sole proprietorship taxes malaysia. The cost of incorporation is much lower. Being a sole proprietor in malaysia has its benefits. For many small scale online businesses in malaysia sole proprietorship single owner or partnership more than one owner is enough and the cheapest option.

If you ve been earning but not declaring your income for tax purposes there are sections to self declare your earnings from previous years. Sole proprietorships and partnerships are the easiest forms of business to be registered hence the most popular forms of business. It requires less paperwork and fewer additional legal formalities.

Corporate income tax in malaysia is applicable to both resident and non resident companies. Sole proprietorship in malaysia. Other taxes paid by a sole proprietorship comprise of self employment taxes social security taxes and property taxes.

While registered companies are subject to corporate tax other types of businesses such as sole proprietorships and partnerships are also liable to income tax. Your tax rate will depend on your income from 0 28. Sole proprietorships in malaysia are charged the income tax on a gradual scale applied to individual income from 2 to 26.

Husband and wife have to fill separate income tax return forms. An important aspect referring to the incorporation of a sole proprietorship here is that foreign persons are not allowed to incorporate this. A sole proprietorship must be registered with the companies commission malaysia the main institution where companies file for registration.

Sole proprietorship malaysia comes with enticing policies where the owner of the company doesn t need to corporate tax. Annual auditing is less complex and doesn t require separate company secretary. The cost evaluation is marginal and way lower when compared with other form of business in this nation.