LHDNM – Clarification on Income Tax for Online Businesses

LHDNM – Clarification on Income Tax for Online Businesses

Lembaga Hasil Dalam Negeri Malaysia (LHDNM) has announced that there are no specific provisions regarding the income tax treatment for online businesses in Malaysia, which is treated in the same way as the income tax for offline/conventional businesses.

For online businesses that are run by individuals, their taxable income will follow the individual income tax rates from 0% to 28% (beginning Year of Assessment 2016). For online businesses of companies, the taxable income tax will fall between 19% and 24%.