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Taxes in Malaysia

Taxes in Malaysia
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Written bymattbakeron 27 June 2011

An individual is taxed on his chargeable income at graduated rates from 2 % to 30% after the deduction of tax reliefs. An individual with chargeable income less than RM2500 is taxed at zero rate. An Expatriate must earn over


RM 5000 p.m to receive a work permit.

Salary Range (per annum) Tax Rate %
2,501 ' 5,0001
5,001 ' 20,0003
20,001 ' 35,0007
35,001 ' 50,00012
50,001 ' 70,00019
70,001 ' 100,00024
100,001 ' 250,00026
> 250,00026

For the first 182 days in Malaysia an Expatriate will be classed as non-resident and will be taxed at 26%. This is refunded at the end of the tax year if an expatriate is subsequently classed as resident.

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Comments

  • Wissing
    Wissing7 years ago(Modified)
    I have understood the tax system like this: If you stay in Malaysia more than 182 days in year one you are tax eligible to Malaysia. From then on you only have to stay 90 days to keep your status as tax eligible to Malaysia. Is that correct?
  • expatraf
    expatraf7 years ago(Modified)
    So... just making sure that I understood it properly... For the first 6 months regardless how much money you make you will pay 28% on tax. After that amount (%) drops according to this chart?
  • jayapalb
    jayapalb8 years ago(Modified)
    I joined in Dec 2015 and first month my company deducted 26% tax. However in Jan 2016 its 28%. Is there any increase in tax rate in Malaysia?
  • Haripriyananduri
    Haripriyananduri11 years ago(Modified)
    I HAVE STARTED WORKING FROM NOV 21 -2012 AND WILL BE STAYING UP T0 mAY 21-2012 WHICH WILL BE MORE THAN 182 DAYS. cAN YOU PLEASE LET ME KNOW WHETHER STILL I HAVE TO PAY 26% TAX TO GOVT .pLEASE HELP ME IN THIS REGARD
  • SabrinaCologne
    SabrinaCologne11 years ago(Modified)
    Hey, could anybody help me with informations about taxes for intern? I would be very glad for some informations. Regards Sabrina

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