For those considering moving to Malaysia
There are often a number of factors to consider when contemplating a new domicile. Taxes may be one of them. We can provide you with an overview of the most basic personal taxation rules in Malaysia.
30
Marginal tax rate
182
Tax immigration rule
0
Wealth tax
Overview of personal taxation in Malaysia – updated per 2025
What is required to establish tax residency in Malaysia?
Individuals who stay in Malaysia for 182 days or more during a tax year are considered to have moved there and to be tax residents. The same applies to individuals who stay in Malaysia for more than 182 days spread over two tax years.
Which types of income are taxable in Malaysia?
Both resident and non-resident taxpayers are taxed on income sourced in Malaysia.
What tax rates apply in Malaysia?
Malaysia has a progressive tax system, with rates ranging from 1 to 30%.
Does Malaysia grant tax credit for foreign taxes?
Malaysia grants tax credit for taxes paid abroad, limited to the amount of Malaysian tax payable on the same income, but capped at 50% in the absence of a tax treaty.
Is there wealth tax in Malaysia?
Malaysia does not levy wealth tax.
What is the tax year in Malaysia?
The tax year in Malaysia corresponds with the calendar year.
When must the tax return be filed in Malaysia?
The individual tax return in Malaysia must be filed by 30 April of the year following the tax year.
What is the name of the tax authority in Malaysia?
The name of the tax authority in Malaysia is Inland Revenue Board of Malaysia.
How many countries does Malaysia have tax treaties with?
Malaysia has tax treaties with approximately 70 countries, including Norway.
Contact
Atle Melø
Partner
amelo@melo.no
+47 951 80 979