Malaysia

Individual - Taxes on personal income

Last reviewed - 21 July 2021

An 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 RM25,000 and holding key positions / C-Suite positions is taxed at a flat rate of 15% for a period of 5 consecutive years. This incentive is limited to 5 non-resident individuals employed in each company that has been granted relocation tax incentive under PENJANA initiative (applications to be received by 31 December 2021).

Local income taxes

There are no local taxes on personal income in Malaysia.