Salary Tax

Hi Can any one tell me what is salary tax in Malaysia ( RM 10K- 15K )?

This should explain … ooklet.pdf

Basically 28% for first 182 days (non-resident)
Switch to resident rates (progressive scale i.e. just high part of salary is more heavily taxed)


non-resident rate 2800 per month
resident rate c. 1500 per month

non resident rate 4200 per month
resident rate c. 2300 per month

tax is viewed on the basis of the tax year (Jan-Dec) so once a person is tax resident, retrospectively the tax payable would just be the tax-resident progressive rate. Tax is always deducted each month and any overpayment is sorted out when the Tax Return is submitted annually in April each year, or on terminating employment and leaving Malaysia.

Do check your offer regarding Pension payments

If you are going to work for a group or sister company that has an office in Malaysia you may be on a Professional Visit Pass, in which case your salary should continue to be paid by your current national office (with sometimes a local COL supplement).  It's like a secondment rather than a local Malaysian employment EP contract.

Thanks my salary will be RM 14K so does it means first 6 months will be reduction of 28% and from 7th month how many percentage of reduction ?

I've given you the rate for 15k and 10k so you can work that out. 

It's a progressive rate tax system so higher earnings attract higher % just on that portion

This will probably explain … ooklet.pdf (Page 7)

Resident rate tax has a tax-free allowance which is RM9k per annum. This has been taken into account in the figures above.

Non-resident rate is flat rate with no tax-free allowance.

The overall annual tax deduction is equalised over the tax year Jan-Dec. when moving from NR to R status and any refund of overpayment is made after annual tax return is completed by employee in April 2019 (and annually thereafter)

New topic