Malaysia SME Corporate Tax vs Sole Prop Calculator

Q: What are the Malaysian SME Sdn Bhd progressive corporate tax rates?

Resident MSMEs with paid-up capital up to RM 2.5M pay 15% on the first RM 150,000, 17% on chargeable income from RM 150,001 to RM 600,000, and 24% above RM 600,000.

Q: When does converting from Sole Proprietor / Enterprise to Sdn Bhd save tax?

When annual net business profit crosses roughly RM 150,000–RM 180,000, individual marginal brackets reach 25% while SME Sdn Bhd brackets remain at 15%–17%.

Q: Does this Sole Prop calculation include individual tax relief and rebates?

Yes. The Sole Proprietor estimate applies the RM 9,000 individual relief plus the RM 400 tax rebate when chargeable income is RM 35,000 or below.

Compare progressive SME Sdn Bhd corporate tax (15% / 17% / 24%) against Sole Proprietor / Enterprise individual tax brackets in RM.

Annual Profit Input

Annual Net Business Profit (RM)

SME Sdn Bhd Tier	Rate
First RM 150,000	15%
RM 150,001 – RM 600,000	17%
Above RM 600,000	24%

Sole Prop benchmark applies RM 9,000 individual relief and RM 400 rebate for chargeable income <= RM 35,000.

Sdn Bhd vs Sole Prop Breakdown

SME Sdn Bhd Tax

RM 0.00

SME Effective Rate

0.00%

Sole Prop Tax

RM 0.00

Sole Prop Effective Rate

0.00%

Annual Sdn Bhd Savings

RM 0.00

Recommended Structure

Sdn Bhd (SME)

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Frequently Asked Questions

What are the Malaysian SME Sdn Bhd progressive corporate tax rates?

Resident MSMEs with paid-up capital up to RM 2.5M pay 15% on the first RM 150,000, 17% on chargeable income from RM 150,001 to RM 600,000, and 24% above RM 600,000.

When does converting from Sole Proprietor / Enterprise to Sdn Bhd save tax?

When annual net business profit crosses roughly RM 150,000–RM 180,000, individual marginal brackets reach 25% while SME Sdn Bhd brackets remain at 15%–17%.

Does this Sole Prop calculation include individual tax relief and rebates?

Yes. The Sole Proprietor estimate applies the RM 9,000 individual relief plus the RM 400 tax rebate when chargeable income is RM 35,000 or below.