Taxes in Malaysia

Taxes in Malaysia
Updated 2011-06-27 14:01

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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