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Malaysia
Individual - Taxes on personal income
Last reviewed - 14 December 2021An individual, whether tax resident or non-resident in Malaysia, is taxed on any income accruing in or derived from Malaysia.
Personal income tax rates
The following rates are applicable to resident individual taxpayers for YA 2021:
| Taxable income (MYR*) | Tax on column 1 (MYR) | Tax on excess (%) | |
| Over | Not over | ||
| 5,000 | 20,000 | 0 | 1 |
| 20,000 | 35,000 | 150 | 3 |
| 35,000 | 50,000 | 600 | 8 |
| 50,000 | 70,000 | 1,800 | 13 |
| 70,000 | 100,000 | 4,400 | 21 |
| 100,000 | 250,000 | 10,700 | 24 |
| 250,000 | 400,000 | 46,700 | 24.5 |
| 400,000 | 600,000 | 83,450 | 25 |
| 600,000 | 1,000,000 | 133,450 | 26 |
| 1,000,000 | 2,000,000 | 237,450 | 28 |
| 2,000,000 | 517,450 | 30 | |
* Malaysian ringgit
A non-resident individual is taxed at a flat rate of 30% on total taxable income.
A qualified person (defined) who is a knowledge worker residing in Iskandar Malaysia is taxed at the rate of 15% on income from an employment with a designated company engaged in a qualified activity in that specified region.
An approved resident individual under the Returning Expert Programme having or exercising employment with a person in Malaysia would also enjoy a tax rate of 15% for five years on income from an employment.
A non-citizen receiving a monthly salary of not less than MYR 25,000 and holding key positions / C-Suite positions is taxed at a flat rate of 15% for a period of five consecutive years. This incentive is limited to five non-resident individuals employed in each company that has been granted relocation tax incentive under the PENJANA initiative (applications to be received by 31 December 2021, proposed to be extended to 31 December 2022).
Local income taxes
There are no local taxes on personal income in Malaysia.
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