Malaysia

Individual - Taxes on personal income

Last reviewed - 22 January 2020

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 2020:

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 14
70,000 100,000 4,600 21
100,000 250,000  10,900 24
250,000 400,000 46,900 24.5
400,000 600,000 83,650 25
600,000 1,000,000 133,650 26
1,000,000 2,000,000 237,650 28
2,000,000 517,650 30

* Malaysian ringgit

WIth effect from YA 2020, a non-resident individual is taxed at a flat rate of 30% on total taxable income.

A qualified knowledge worker in a specified area (currently only Iskandar Malaysia) is taxed at the concessionary rate of 15% on chargeable income from employment with a designated company engaged in a qualified activity (e.g. green technology, educational services, healthcare services, creative industries, financial advisory and consulting services, logistics services, tourism). Employment must commence between 24 October 2009 and 31 December 2020.

It was proposed in April 2011 that 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.

Local income taxes

There are no local taxes on personal income in Malaysia.