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Malaysia
Individual - Taxes on personal income
Last reviewed - 06 December 2023An individual, whether tax resident or non-resident in Malaysia, is taxed on any income accruing in or derived from Malaysia. Resident individuals are also subject to tax on foreign-sourced income received in Malaysia (see the Income determination section).
Personal income tax rates
The following rates are applicable to resident individual taxpayers for year of assessment 2023 onwards:
| 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 | 6 |
| 50,000 | 70,000 | 1,500 | 11 |
| 70,000 | 100,000 | 3,700 | 19 |
| 100,000 | 400,000 | 9,400 | 25 |
| 400,000 | 600,000 | 84,400 | 26 |
| 600,000 | 2,000,000 | 136,400 | 28 |
| 2,000,000 | 528,400 | 30 | |
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 qualified person (defined) who is holding a key position (C-Suite) is taxed at the rate of 15% on income from employment with a company that has been granted a relocation tax incentive under the PENJANA initiative.
Local income taxes
There are no local taxes on personal income in Malaysia.
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