Your numbers
Suggested salary
To pay the least tax, pay yourself a salary of about RM70,000 plus your personal tax reliefs each year. With only the basic RM9,000 relief, that's about RM79,000 a year (RM6,600 a month). Above this, your personal tax jumps from 11% to 19%, higher than the company's 15–17%.
| Yearly profit | Suggested yearly salary | Tax saved vs Enterprise |
|---|---|---|
| Up to RM80,000 | Take it all as salary | Little or none |
| RM100,000 | About RM79,000 | RM840 |
| RM200,000 | About RM79,000 | RM10,243 |
| RM500,000 | About RM79,000 | RM30,741 |
| RM800,000 | About RM200,000 | RM50,710 |
| RM1,000,000 | About RM400,000 | RM56,710 |
If the company would still make more than RM600,000 after your salary, pay yourself more, because company tax rises to 24% above that.
Have more reliefs, such as EPF, spouse, children or insurance? Add them to RM70,000. For example, with RM20,000 of reliefs, a salary of about RM90,000 works best.
Examples
The owner pays themselves a salary of RM6,000 a month from the Sdn Bhd. The rest is taxed in the company and paid out as dividends.
| Yearly profit | Enterprise tax | Sdn Bhd tax | You save |
|---|---|---|---|
| RM100,000 | RM7,690 | RM7,130 | RM560 |
| RM150,000 | RM19,650 | RM14,630 | RM5,020 |
| RM200,000 | RM32,150 | RM22,306 | RM9,844 |
| RM300,000 | RM57,150 | RM40,535 | RM16,615 |
| RM500,000 | RM108,060 | RM77,855 | RM30,205 |
How it's worked out
Enterprise
All profit counts as your personal income and is taxed at personal rates:
| Chargeable income | Rate |
|---|---|
| First RM5,000 | 0% |
| RM5,001 – RM20,000 | 1% |
| RM20,001 – RM35,000 | 3% |
| RM35,001 – RM50,000 | 6% |
| RM50,001 – RM70,000 | 11% |
| RM70,001 – RM100,000 | 19% |
| RM100,001 – RM400,000 | 25% |
| RM400,001 – RM600,000 | 26% |
| RM600,001 – RM2,000,000 | 28% |
| Above RM2,000,000 | 30% |
Sdn Bhd
Your salary is taxed at the personal rates above. The company's remaining profit is taxed at SME rates:
| Company profit | Rate |
|---|---|
| First RM150,000 | 15% |
| RM150,001 – RM600,000 | 17% |
| Above RM600,000 | 24% |
SME rates apply when paid-up capital is RM2.5 million or less and gross income is RM50 million or less. Dividends you then receive are taxed at 2% on the part above RM100,000 a year.
A rough guide only, for a Malaysian tax resident. It assumes RM9,000 personal relief and all company profit paid out as dividends. EPF, SOCSO and other reliefs are not included. A Sdn Bhd also has yearly running costs, so talk to us or your tax adviser with your actual numbers.
Common questions
At what profit does a Sdn Bhd start saving tax?
In our examples, the saving becomes meaningful from about RM150,000 profit a year, around RM5,000. Below RM100,000 it's usually small once you count a Sdn Bhd's yearly running costs.
What salary should I pay myself?
About RM70,000 plus your personal reliefs, which is around RM79,000 a year with only the basic relief. That's where personal tax moves from 11% to 19%. See the suggested salary table above.
Are dividends from a Sdn Bhd taxed?
Dividends are paid from profit already taxed in the company. From YA2025, individuals pay 2% on dividend income above RM100,000 a year.
Saving looks worth it?
Register your Sdn Bhd for RM0 when you appoint us as your company secretary.