No deduction for book depreciation is allowed although capital allowances are granted. Unabsorbed losses may be carried forward indefinitely to offset against future income. Company Tax A company, whether resident or not, is assessable on income accrued in or derived from Malaysia. Income derived from sources outside Malaysia and remitted by a resident company is not subject to tax, except in the case of the banking and insurance business and sea and air transport undertakings. A company is considered a resident in Malaysia if the control and management of its affairs are exercised in Malaysia.
All individuals are liable to tax on income accrued in, derived from or remitted to Malaysia.
However a non-resident individual will be taxed only on income earned in Malaysia. However, an individual with chargeable income of RM2,500 or less, the tax rate is zero. A further rebate of RM350 is given for his wife where the wife's income is jointly assessed. A wife who is assessed separately will also be entitled to a rebate of RM350 if her chargeable income does not exceed RM35,000. The amount paid in respect of any zakat, fitrah or other Islamic religious dues which are obligatory.