#

Ease of Doing Business in

Malaysia

Malaysia Download Profile (1797.5KB, pdf)
Region East Asia & Pacific
Income Category Upper middle income
Population 30,331,007
GNI Per Capita (US$) 10,570
City covered Kuala Lumpur

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 23 22 down
1
78.11 78.18 down
0.07
Starting a Business 112 59 down
53
83.67 89.31 down
5.64
Dealing with Construction Permits 13 13
-
81.10 81.08 up
0.02
Getting Electricity 8 7 down
1
94.34 94.33 up
0.01
Registering Property 40 39 down
1
76.29 76.32 down
0.03
Getting Credit 20 29 up
9
75.00 70.00 up
5.00
Protecting Minority Investors 3 3
-
80.00 80.00
-
Paying Taxes 61 59 down
2
79.20 79.31 down
0.11
Trading across Borders 60 58 down
2
82.38 82.38
-
Enforcing Contracts 42 40 down
2
66.61 66.61
-
Resolving Insolvency 46 45 down
1
62.49 62.49
-

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

61

DB 2016 Rank:

59

Change in Rank:

down2

DB 2017 DTF (% points):

79.20

DB 2016 DTF (% points):

79.31

Change in DTF (% points):

down0.11

Indicator Malaysia East Asia & Pacific OECD high income
Payments (number per year) info_outline 9 22.9 10.9
Time (hours per year) info_outline 164 198.0 163.4
Total tax rate (% of profit) info_outline 40 33.9 40.9
Postfiling index (0-100) info_outline 64.3 59.6 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 1 online 26 25% taxable profit 21.17
Employer paid - Provident fund contributions 1 online variable gross salaries 14.56
Employer paid - Social security contributions 1 online 50 variable gross salaries 1.81
Real estate capital gains 1 5% - 30% capital gain 1.52
Property tax 1 10% annual property value 0.49
Vehicle tax 1 RM 8,545 fixed fee 0.47
Stamp duty 1 depending of the value of transaction transaction value 0.00
GST 2 online 88 6% value added 0.00
Employee-paid - Social security contributions 0 jointly variable gross salaries 0.00 withheld
Totals: 9 164 40.00
  • Taxes by type Answer
    Profit tax (% of profit) 22.7
    Labor tax and contributions (% of profit) 16.4
    Other taxes (% of profit) 0.9
    Answer Score
    Postfiling index (0-100) 64.3
    VAT refunds N/A
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission N/A
    Does a VAT/GST refund process exist per the case study? No
    Restrictions on VAT refund process New VAT/GST system established in 2015
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A No VAT
    Time to obtain a VAT refund (weeks) N/A No VAT
    Corporate income tax audits 93.1
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Likely
    Time to comply with a corporate income tax audit (hours) 5.3 93.1
    Time to complete a corporate income tax audit (weeks) 20.6 35.5
    Administrative appeal process
    First level administrative appeal authority Director General of Inland Revenue (DGIR)
    Is the appeal authority independent? Different auditor
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 12 months

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.