TAXATION ON LLP

Tax Treatment of LLP

LLP have a similar tax treatment like Company* where chargeable Income from LLP will be taxed at the LLP level at tax rate of 25% generally. However, LLP with capital contribution of RM2.5 million or less will enjoy a preferential tax rate of 20% on the first RM 500,000 of its chargeable income. Profits paid, credited or distributed to partners in the LLP are exempt from tax. There is no withholding tax on profits paid, credited or distributed to the partners.

* Specific incentives provided to a company do not apply to an LLP.