If we take RM 300,000 as chargeable income , Sdn Bhd need to pay RM 51,000 Tax; whereas for Enterprise need to pay RM 59,150
Sdn Bhd :
RM 300,000 x 17% = RM 51,000
First RM 250,000 = RM 46,900
Next RM 50,000 x 24.5% = RM 12,250
Total = RM 59,150
Difference : RM 8,150
Why Sdn Bbd paying lesser tax compare Enterprise ?
Sdn bhd (SME) tax rate, first RM 600k of chargeable income is tax at 17% , balance is tax at 24%.
Company tax rate :
Enterprise tax rate (resident individual tax payer) is by tiers, ranging from 0% to 30%.
Personal Income Tax Rate :