Malaysia Personal Income Tax
Detailed personal income tax rates and rules for Malaysia.
Malaysia's personal income tax applies progressive rates from 0% to 30% across multiple brackets. Tax residents are taxed on Malaysian-sourced income only (territorial basis), though foreign-sourced income remitted to Malaysia has been taxable from 2022 for companies, with individual exemption extended. Non-residents are taxed at a flat 30% on Malaysian-sourced income. Various tax reliefs are available including personal relief (RM 9,000), medical insurance (RM 3,000), education (RM 7,000), EPF contributions (RM 4,000), and lifestyle relief (RM 2,500).
| Income Range (MYR) | Tax Rate |
|---|---|
| RM 0 – RM 5K | 0% |
| RM 5K – RM 20K | 1% |
| RM 20K – RM 35K | 3% |
| RM 35K – RM 50K | 6% |
| RM 50K – RM 70K | 11% |
| RM 70K – RM 100K | 19% |
| RM 100K – RM 400K | 25% |
| RM 400K – RM 600K | 26% |
| RM 600K – RM 2.0M | 28% |
| RM 2.0M+ | 30% |
Filing Deadline
April 30 (employment income); June 30 (business income)
Residency Rule
An individual is a tax resident if present in Malaysia for at least 182 days in a calendar year. Residents benefit from progressive tax rates and are eligible for tax reliefs. Non-residents are taxed at a flat 30% without personal reliefs.
Additional Notes
Malaysia introduced a 2% tax on dividend income exceeding RM 100,000 per year from 2025. The government also provides various tax incentives for specific investments including Principal Hub incentives, Multimedia Super Corridor (MSC) status, and tax holidays for manufacturing companies.