Southeast Asia
Malaysia: tax at a glance
A territorial system. Foreign-sourced income of resident individuals is exempt, subject to conditions, through 31 December 2036.
Territorial
Last verified
Ways to relocate to Malaysia
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 30%Progressive, with a top rate of 30% above MYR 2m in chargeable income. Foreign income is exempt for individuals until 2036, if it was taxed abroad.
- Corporate income
- 24%
- Capital gains
- There is no general capital gains tax. Real property gains tax runs up to 30%, and a 10% capital gains tax applies to disposals of unlisted shares, from 2024.
- VAT / SST, with sales tax of 5-10% and service tax of 8%.
- None. Malaysia uses SST instead.
- Dividends (WHT)
- 0%, under the single-tier system. A 2% tax applies to resident-individual dividends above MYR 100k, from YA2025.
- Interest (WHT)
- 15%
- Royalties (WHT)
- 10%
- Social security (employee)
- 11% to the EPF, plus roughly 0.5% for SOCSO and EIS.
- Social security (employer)
- 12-13% to the EPF, plus roughly 1.75% for SOCSO and EIS.
- Wealth tax
- None
- Inheritance / estate
- None. Estate duty was abolished in 1991.
- Property tax
- Local assessment rates, known as cukai pintu, and quit rent, known as cukai tanah.
- Other
- SST, with sales tax of 5-10% and service tax of 8%.
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
A special regime for new arrivals
Foreign-source income received by individuals in Malaysia is exempt through to 31 December 2036 under the current exemption order, subject to conditions. This is an exemption with an expiry date, not a permanent feature of the system. Plan accordingly.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.