Corporate Tax Calculator (SME)
Find out if your company qualifies for the SME tax rate, and estimate your annual corporate tax using LHDN’s official tiered structure. Enter your paid-up capital, gross income and chargeable income below.
Corporate Tax Calculator (SME)
Find out if your company qualifies for the SME tax rate, and estimate your corporate tax payable using the official tiered structure.
Estimate for guidance only, based on the standard SME/non-SME tiered corporate tax structure. Some deductions, incentives, and reliefs (e.g. capital allowances, pioneer status) are not modelled here. Confirm your exact position with LHDN or our tax team.
This is an estimate for planning purposes only. For your actual corporate tax computation and Form C filing, our accounting team is ready to help.
What Is the SME Tax Rate and Who Qualifies?
Malaysian Sdn Bhd companies that qualify as an SME enjoy a lower, tiered corporate tax structure instead of the standard 24% rate. To qualify, your company must meet all of these conditions:
- Paid-up capital of RM2.5 million or less (or capital contribution of RM2.5 million or less for an LLP)
- Annual gross income not exceeding RM50 million
- Not controlled by a larger related company (a parent company or group)
- Not an investment holding company
Tiered Tax Rate Structure (YA2026)
- 15% on the first RM150,000 of chargeable income
- 17% on the next RM450,000 (RM150,001 to RM600,000)
- 24% on the remainder above RM600,000
The calculator above works this out automatically from the paid-up capital, gross income and chargeable income you enter. For the full breakdown with worked examples, read Corporate Tax Rate in Malaysia: What Business Owners Need to Know.
Note: Budget 2027 proposes lowering the first two bands to 14% and 16% from YA2027, but this remains a proposal until the Finance Bill is passed — we’ll update this page once it’s confirmed.
Why Is Corporate Tax So Confusing for SMEs?
Many business owners assume the SME rate applies automatically the moment a company registers as a Sdn Bhd — it doesn’t, the eligibility conditions above must be met every year of assessment. We cover the common sources of confusion in Why Is Corporate Tax Filing So Confusing for SMEs?, and what happens if you file late in What Happens If You File Company Tax Late?
FAQ
How do I know if my company qualifies as an SME?
Enter your paid-up capital and gross income into the calculator above — it checks automatically whether you qualify for the SME rate.
I just registered my company — can I use the SME rate in year one?
Yes, as long as the paid-up capital and income conditions are met. Our accounting team can confirm your company’s exact status.