EXPAT TAX

 

Expats working in Malaysia are taxed based on their residency status:

Tax Rates for Expats

1. Non-Residents (Less than 182 days in Malaysia) – Flat 30% income tax rate.

2. Residents (More than 182 days in Malaysia) – Progressive tax rates:

1. Up to MYR 20,000 – 1%

2. MYR 20,001 - 35,000 – 3%

3. MYR 35,001 - 50,000 – 6%

4. MYR 50,001 - 70,000 – 11%

5. MYR 70,001 - 100,000 – 19%

6. MYR 100,001 - 400,000 – 25%

7. MYR 400,001 - 600,000 – 26%

8. MYR 600,001 - 2,000,000 – 28%

9. Above MYR 2,000,000 – 30%.

Special Tax Incentives

1. Knowledge Workers in Iskandar Malaysia – 15% tax rate on employment income.

2. Returning Expert Programme – 15% tax rate for five years.

3. C-Suite Executives under PENJANA Initiative – 15% tax rate

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more on this at these websites
 

1. Lembaga Hasil Dalam Negeri Malaysia (LHDN) – Malaysia’s official tax authority provides information on tax treatment for residents and non-residents, including income tax rates and filing requirements. Visit here.
    

2. Tax Treatment for Residents & Non-Residents – A detailed PDF guide from LHDN explaining tax residency status, taxable income, and employer obligations. Access the document.
    

3. Expat.com Malaysia Tax Guide – A comprehensive guide covering income tax, corporate tax, property tax, and exemptions for expatriates. Read more.