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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 ' 5,000 | 1 |
| 5,001 ' 20,000 | 3 |
| 20,001 ' 35,000 | 7 |
| 35,001 ' 50,000 | 12 |
| 50,001 ' 70,000 | 19 |
| 70,001 ' 100,000 | 24 |
| 100,001 ' 250,000 | 26 |
| > 250,000 | 26 |
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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