🇲🇾 Moving to Malaysia

• Limit: MYR 5,000/yr ≈ $1,220

A Malaysian tax resident (182 days or more in the basis year) pays scale rates from 0% to 30% on chargeable income and may claim personal reliefs; a non-resident pays a flat 30% with no reliefs. Foreign-source income received in Malaysia by resident individuals is exempt from 1 January 2022 to 31 December 2036, except partnership business income; Malaysian-source employment income is taxed under the scale rates.

Taxed on

Chargeable income of an individual (income from Malaysian sources and, unless exempt, foreign-source income received in Malaysia). Scale for Year of Assessment 2023, 2024 and 2025: 0% on the first RM5,000; 1% on the next RM15,000; 3% on the next RM15,000; 6% on the next RM15,000; 11% on the next RM20,000; 19% on the next RM30,000; 25% on the next RM300,000; 26% on the next RM200,000; 28% on the next RM1,400,000; 30% above RM2,000,000. Non-residents: flat 30%. Top marginal rate shown as ratePercent.

Who it applies to

• Resident for a basis year: physical presence in Malaysia of 182 days or more in the basis year; generally non-resident if present fewer than 182 days (Public Ruling 2/2026 para 4.4, with PR 11/2017 on the full residence rules).
• Resident individuals are eligible for personal tax reliefs under sections 45A to 49 of the Income Tax Act 1967 and are taxed at the scale rates of Schedule 1.

Exclusions

• Non-resident individuals pay a flat 30% on chargeable income and cannot claim personal reliefs.
• Employment income of a non-resident exercised in Malaysia is exempt under paragraph 21 of Schedule 6 where the conditions in PR 2/2026 para 4.6.1 are met, including employment of no more than 60 days in total in the basis year.

Limits

• MYR 5,000 a year (≈ $1,220) · 0% on the first RM5,000 of chargeable income
• MYR 20,000 a year (≈ $4,900) · 1% on the next RM15,000 (RM5,001 to RM20,000)
• MYR 35,000 a year (≈ $8,570) · 3% on the next RM15,000 (RM20,001 to RM35,000)
• MYR 50,000 a year (≈ $12,200) · 6% on the next RM15,000 (RM35,001 to RM50,000)
• MYR 70,000 a year (≈ $17,100) · 11% on the next RM20,000 (RM50,001 to RM70,000)
• MYR 100,000 a year (≈ $24,500) · 19% on the next RM30,000 (RM70,001 to RM100,000)
• MYR 400,000 a year (≈ $98,000) · 25% on the next RM300,000 (RM100,001 to RM400,000)
• MYR 600,000 a year (≈ $147,000) · 26% on the next RM200,000 (RM400,001 to RM600,000)
• MYR 2,000,000 a year (≈ $490,000) · 28% on the next RM1,400,000 (RM600,001 to RM2,000,000); 30% above RM2,000,000

Days in the country

• At least 182 days in basis year (calendar year) · Presence in Malaysia of 182 days or more makes an individual resident; fewer than 182 days generally means non-resident.

Tax residence

Residence follows physical presence in the basis year, not nationality or visa; presence in adjacent basis years can also count in certain situations (PR 2/2026 para 4.4). One condition of the non-resident short-employment exemption: employment in Malaysia not exceeding 60 days in total in a basis year (PR 2/2026 para 4.6.1).

Visas

Visa or work-pass type does not set tax residence; days of presence do.

Other taxes

Foreign-source income received in Malaysia by resident individuals is covered by “Malaysia: exemption for foreign-source income received by resident individuals”. Sales and service tax and social contributions apply separately.

Checked against official sources on 10 Oct 2026Change log

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