Lower company tax rates
Because Sdn Bhd is taxed separately from their owners, and the corporate tax rate is generally lower than the individual tax rate.
Currently, the company tax rate, based on YA2009 to YA2019, for companies (have less than 2.5 million share capital) is as follow:
First RM500,000 chargeable income – 20%
Above RM500,000 chargeable income – 24%
However, maximum tax rate for individual is 28% when chargeable income exceeding RM100k, for YA2018.