{"id":4187,"date":"2026-08-04T06:47:14","date_gmt":"2026-08-04T06:47:14","guid":{"rendered":"https:\/\/www.genesisorigo.com\/?page_id=4187"},"modified":"2026-08-04T07:28:27","modified_gmt":"2026-08-04T07:28:27","slug":"msmc-tax-treatment-public-ruling-8-2025","status":"publish","type":"page","link":"https:\/\/www.genesisorigo.com\/zh\/msmc-tax-treatment-public-ruling-8-2025\/","title":{"rendered":"\u9a6c\u6765\u897f\u4e9a\u4e2d\u5c0f\u4f01\u4e1a\u7a0e\uff1aMSMC\u6807\u51c6\u8be6\u89e3"},"content":{"rendered":"
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\u4e3b\u9875<\/a>\/<\/span>\u6587\u7ae0<\/a>\/<\/span>MSMC Tax Treatment<\/span><\/div>\n
Malaysian Tax Explainer · IRB Public Ruling 8\/2025<\/div>\n

SME Tax in Malaysia: Who Qualifies as an MSMC<\/em>?<\/h1>\n

The 15% and 17% preferential tax rates are reserved for companies and LLPs that pass four strict tests — and many businesses fail them without realising. A clear walkthrough of the Inland Revenue Board’s Public Ruling 8\/2025<\/strong>, the definitive guidance on the tax treatment of micro, small and medium companies.<\/p>\n

<\/span>15% \/ 17% SME Rates<\/span><\/span>RM2.5m Capital Test<\/span><\/span>50% Shareholding Chain<\/span><\/span>20% Foreign Cap (YA 2024)<\/span><\/div>\n<\/div>\n<\/section>\n
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\"Mr<\/div>\n
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Explained By<\/div>\n

\u5218\u5c55\u5b89\u5148\u751f<\/h3>\n

FCCA · CA(M) · Chartered Accountant<\/strong> · Principal, CA Low & Co · Founder, Genesis Origo<\/p>\n<\/div>\n

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Official IRB Reference<\/div>\n

Public Ruling No. 8\/2025<\/em> · Micro, Small & Medium Companies<\/h2>\n

Issued by the Director General of Inland Revenue under Section 138A of the Income Tax Act 1967 — setting out the qualifying criteria and every special tax treatment available to MSMCs, including LLPs.<\/p>\n

Published<\/strong> 22 December 2025<\/span>Edition<\/strong> First<\/span>Pages<\/strong> 26<\/span><\/div>\n<\/div>\n

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Download Full PR (PDF)<\/a><\/div>\n<\/div>\n

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Jump to a Concept<\/div>\n
01<\/span>MSME vs MSMC — Two Definitions<\/span><\/a>02<\/span>The Four Qualifying Conditions<\/span><\/a>03<\/span>Gross Business Income Traps<\/span><\/a>04<\/span>The 50% Shareholding Chain<\/span><\/a>05<\/span>The 20% Foreign-Ownership Cap<\/span><\/a>06<\/span>Rates & Special Treatments<\/span><\/a><\/div>\n<\/div>\n<\/div>\n<\/section>\n
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Concept 01<\/p>\n

MSME vs MSMC — Two Different Definitions<\/h2>\n

SME Corp. Malaysia decides whether you are an MSME. The Income Tax Act decides whether you get the tax benefits. They are not the same test.<\/p>\n<\/div>\n

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01<\/div>\n
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Definitions<\/div>\n

The ITA Has No<\/em> MSME Definition<\/h3>\n
PR 8\/2025 · Paragraphs 4 & 5<\/div>\n<\/div>\n<\/div>\n
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SME Corp. Malaysia classifies businesses as micro, small or medium by annual sales turnover or full-time employees<\/strong> — for example, a services business is “small” from RM300,000 to below RM3 million in sales, or 5 to below 30 employees. That classification matters for grants and development programmes.<\/p>\n

The Income Tax Act 1967 takes a completely different route. It never defines an “MSME” at all. Instead, it grants special tax treatment to MSMCs<\/strong> — companies and LLPs that are resident and incorporated (or registered) in Malaysia and that pass the ITA’s own tests on capital, gross income and shareholding.<\/p>\n

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SME Corp. Test<\/div>\n

Turnover or Headcount<\/h4>\n

Sector-based bands on annual sales (up to RM50m manufacturing \/ RM20m services) or employees (up to 200 \/ 75). Must be SSM-registered and not Bursa main-market listed or an MNC\/GLC subsidiary.<\/p>\n

Determines:<\/strong> MSME status for grants & programmes<\/div>\n<\/div>\n
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Income Tax Act Test<\/div>\n

Capital, Income & Shareholding<\/h4>\n

Paid-up ordinary share capital ≤ RM2.5m, gross business income ≤ RM50m, and no disqualifying shareholding links — measured at the beginning of the basis period for each year of assessment.<\/p>\n

Determines:<\/strong> MSMC status for tax benefits<\/div>\n<\/div>\n<\/div>\n
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Why This Matters<\/div>\n
Being an SME Corp. MSME does not entitle you to the 15% rate<\/h5>\n

A business can be a certified MSME for grant purposes yet fail the ITA tests<\/strong> — and equally, a company can fail SME Corp.’s bands but still qualify as an MSMC. Always assess the tax tests separately, every year of assessment.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Watch the Video<\/p>\n

Mr Low’s Flash Review of PR 8\/2025<\/em><\/h2>\n

A quick walkthrough of the MSMC criteria, the shareholding traps in Examples 10, 12 and 15, and the special tax treatments.<\/p>\n<\/div>\n

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