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Section 6: Starting a Business

Business Taxes and SST Basics

Tax obligations for businesses

Business taxes you need to know:

Businesses must pay taxes. The type depends on your business structure.

Corporate Tax:

  • For Sdn Bhd companies
  • Rate: 15-24%
  • File annually with LHDN

SST (Sales and Service Tax):

  • Sales tax: On manufactured goods
  • Service tax: On specific services
  • Register if turnover > RM500,000

How to file taxes:

  1. Keep proper records
  2. Prepare financial statements
  3. File with LHDN
  4. Pay tax due

Important numbers:

  • LHDN: 03-8911 1000
  • Website: hasil.gov.my

Frequently Asked Questions

When do I need to register for SST?
When your annual taxable turnover exceeds RM500,000. Voluntary registration is allowed if below threshold.
What expenses can I claim for tax?
Wholly incurred for business: rent, salaries, utilities, marketing, etc. Personal expenses not claimable.
What if I file late?
Penalties apply: 10% fine on tax owed + possible legal action. File on time to avoid penalties.
Do I need a tax agent?
Not mandatory but recommended for Sdn Bhd. Sole proprietors with simple businesses can file themselves.

Last updated: March 2026

Disclaimer: This guide provides general information only. Always verify with official sources for the most current information.