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If you are planning to set up a company in Malaysia, you will need to pay several types of taxes

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  1. Corporate Income Tax: All companies in Malaysia are required to pay corporate income tax on their profits. The standard rate for corporate income tax is 24%, but smaller companies may be eligible for a lower rate of 17% on the first RM 600,000 of their taxable income.
  2. Goods and Services Tax (GST) or Sales and Services Tax (SST): Depending on the nature of your business, you may also need to register for GST or SST, which are consumption taxes. GST was previously implemented in Malaysia but has been replaced by SST since September 2018. SST has two components: Sales Tax and Service Tax, and the rate varies depending on the type of goods or services provided.
  3. Withholding Tax: If your company pays foreign entities for services or royalties, you may need to withhold a portion of the payment and remit it to the Malaysian government as withholding tax.
  4. Employment Tax: If you hire employees in Malaysia, you will need to register with the Inland Revenue Board and deduct and remit their monthly income tax and social security contributions.

It is important to note that the tax laws and rates in Malaysia may change from time to time, so it is advisable to consult a tax professional or the Malaysian Inland Revenue Board for the latest information.

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