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Tax in Malaysia

Your personal tax guide for Malaysia

The content in this tax guide is provided by EY.

Going to or leaving Malaysia

Local tax information for Malaysia

Local information Details

Tax authority

The Inland Revenue Board of Malaysia (IRBM)

Website

www.hasil.org.my

Tax year

1 January to 31 December

Tax return due date

30 April (or 30 June if individual has business income)

Is joint filing possible

Yes

Are tax return extensions possible

No

Local tax information for Malaysia

Local information

Tax authority

Details

The Inland Revenue Board of Malaysia (IRBM)

Local information

Website

Details

www.hasil.org.my

Local information

Tax year

Details

1 January to 31 December

Local information

Tax return due date

Details

30 April (or 30 June if individual has business income)

Local information

Is joint filing possible

Details

Yes

Local information

Are tax return extensions possible

Details

No

2020 income tax rates for residents

2020 income tax rates for residents.

Taxable income band MYR Tax rate
0 to 5,000 0%

5,001 to 20,000

1%

20,001 to 35,000

3%

35,001 to 50,000

8%

50,001 to 70,000

14%

70,001 to 100,000

21%

100,001 to 250,000

24%

250,001 to 400,000

24.5%

400,001 to 600,000

25%

600,001 to 1,000.000 26%
1,000,001 to 2,000,000 28%
2,000,001+ 30%

2020 income tax rates for residents.

Taxable income band MYR 0 to 5,000
Tax rate 0%
Taxable income band MYR

5,001 to 20,000

Tax rate

1%

Taxable income band MYR

20,001 to 35,000

Tax rate

3%

Taxable income band MYR

35,001 to 50,000

Tax rate

8%

Taxable income band MYR

50,001 to 70,000

Tax rate

14%

Taxable income band MYR

70,001 to 100,000

Tax rate

21%

Taxable income band MYR

100,001 to 250,000

Tax rate

24%

Taxable income band MYR

250,001 to 400,000

Tax rate

24.5%

Taxable income band MYR

400,001 to 600,000

Tax rate

25%

Taxable income band MYR 600,001 to 1,000.000
Tax rate 26%
Taxable income band MYR 1,000,001 to 2,000,000
Tax rate 28%
Taxable income band MYR 2,000,001+
Tax rate 30%

Non-residents are subject to withholding taxes on certain types of income. Other income is taxed at a rate of 30%.

If a Malaysian or foreign national “knowledge worker” resides in the Iskandar Development Region and is employed in certain qualifying activities by a designated company and if their employment commences on or after 24 October 2009 but not later than 31 December 2015, the worker may apply to be subject to tax at a reduced rate of 15%. The individual must not have derived any employment income in Malaysia for at least three years before the date of the application.

Malaysian professionals returning from abroad to work in Malaysia would be taxed at a rate of 15% for the first five consecutive years following the professional’s return to Malaysia under the Returning Expert Programme (REP).

Employment income received by women who return to the workforce after being unemployed for at least two years as of 27 October 2017 may be exempted from tax for up to 12 consecutive months. An application for the tax exemption can be submitted to Talent Corporation Malaysia Berhad from 1 January 2018 to 31 December 2023.

Expat Tax Guides

Read tax guides for expats provided by EY.

Additional information

The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.

Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

HSBC accepts no responsibility for the accuracy of this information.

This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.

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