Definition Of Sme In Malaysia Tax

Sme corporation malaysia 2 at this moment for incentives under the malaysian investment development authority mida and corporate tax under the inland revenue board irb the definition of smes will be based on their respective acts.

Definition of sme in malaysia tax. These include ministries and agencies2 at the federal and state levels including statutory bodies and local authorities regulators as well as financial institutions. The definition of sme used by sme corporation and bank negara malaysia for purposes of granting financial assistance is not found in the act for income tax purposes. Malaysian government targets to raise smes contribution to gdp to 41 and the share of the country s exports from smes to 23 by 2020. The sme definition is applied to all relevant stakeholders implementing sme development initiatives.

Not more than fifty per cent of the paid up capital in respect of ordinary shares of the company is directly or indirectly owned by a related company. The strong sme growth in malaysia can be largely attributed to the new definition for smes which has its one off effect to the growth and promotion of smes in the country. A sme is defined as a company resident in malaysia which has a paid up capital of ordinary shares of rm2 5 million or less at the beginning of the basis period of a ya provided. Generally sme refer to resident companies that has a paid up capital in respect of ordinary shares of rm2 5mil and less effective from ya 2009 the definition of a sme has been re defined as a company resident in malaysia which has a paid up capital of ordinary shares of rm2 5 million or less at the beginning of the basis period of a ya provided.

Definition of sme in fact there is no definition of sme under the income tax act 1967 the act. 2 definition by lhdn lembaga hasil dalam negeri malaysia tax authority sme is defined as a company resident in malaysia which has a paid up capital of rm2 5 million or less and is not related to any company with paid up capital of more than rm2 5 million annual sales turnover not more than rm5 million. In malaysia corporations are subject to corporate income tax real property gains tax goods and services tax gst and etc taxes. Malaysia adopted a common definition of smes to facilitate identification of smes in the various sectors and subsectors.

Sme corporation malaysia sme corp. This has facilitated the government to formulate effective development policies support programmes as well as provision of technical and financial assistance.