Malaysia
Asia
Malaysia has a comprehensive tax system with progressive individual income tax rates from 0% to 30%, a flat corporate tax rate of 24%, and Sales and Service Tax (SST). The tax year in Malaysia runs from January 1 to December 31, with individual tax returns due by April 30th. Malaysia offers various tax reliefs and deductions including those for education, medical expenses, and home ownership.
How Taxation Works in Malaysia
Understand the basics of Malaysia's tax system, who pays tax, and how rates apply to individuals and businesses.
Tax System
Malaysia uses a self-assessment tax system where taxpayers calculate and report their own tax obligations. The LHDNM administers tax collection and enforcement. Tax returns are filed annually, and taxpayers must pay their tax liability by the deadline.
Residents
Tax residents are taxed on worldwide income. Non-residents are taxed only on Malaysia-sourced income. Companies are taxed on Malaysian-sourced income. Withholding tax applies to certain payments to non-residents.
Non-Residents
Tax residents are individuals who reside in Malaysia for 182 days or more in a tax year, or are Malaysian citizens or permanent residents. Residents are taxed on worldwide income. Non-residents are taxed at a flat 30% on Malaysia-sourced income.
Individuals
Malaysia has a progressive income tax system with rates from 0% to 30% for resident individuals. Non-residents are taxed at a flat 30%. Various personal reliefs, deductions, and exemptions are available to reduce taxable income.
Businesses
Corporate tax is 24% for resident corporations. SMEs with paid-up capital not exceeding RM2.5 million benefit from a partial exemption on the first RM600,000 of statutory income. SST applies to sales and services at 10% and 8% respectively.
Tax Residency
Malaysia taxes residents on worldwide income and non-residents on Malaysia-sourced income. Residency is determined by 182+ days presence.
Progressive Tax Rates
Malaysia uses a progressive income tax system with rates from 0% to 30% for resident individuals.
SST vs GST
Malaysia replaced GST with SST (Sales and Service Tax) in 2018. Sales Tax is 10% on manufactured goods; Service Tax is 8% on specified services.
EPF Contributions
The Employees Provident Fund (EPF) is a mandatory savings scheme. Both employer and employee contribute to EPF, and contributions are tax-deductible.
Current Tax Information
Calendar Year (January 1 – December 31) tax slabs, rates, thresholds, and key deductions for Malaysia.
| Rate | Threshold | Notes |
|---|---|---|
| 0% | Up to RM 5,000 | Chargeable income |
| 1% | RM 5,001 – RM 20,000 | Chargeable income |
| 3% | RM 20,001 – RM 35,000 | Chargeable income |
| 5% | RM 35,001 – RM 50,000 | Chargeable income |
| 6% | RM 50,001 – RM 70,000 | Chargeable income |
| 7% | RM 70,001 – RM 100,000 | Chargeable income |
| 8% | RM 100,001 – RM 150,000 | Chargeable income |
| 9% | RM 150,001 – RM 200,000 | Chargeable income |
| 10% | RM 200,001 – RM 250,000 | Chargeable income |
| 11% | RM 250,001 – RM 300,000 | Chargeable income |
| 12% | RM 300,001 – RM 350,000 | Chargeable income |
| 13% | RM 350,001 – RM 400,000 | Chargeable income |
| 14% | RM 400,001 – RM 450,000 | Chargeable income |
| 15% | RM 450,001 – RM 500,000 | Chargeable income |
| 16% | RM 500,001 – RM 550,000 | Chargeable income |
| 17% | RM 550,001 – RM 600,000 | Chargeable income |
| 18% | RM 600,001 – RM 650,000 | Chargeable income |
| 19% | RM 650,001 – RM 700,000 | Chargeable income |
| 20% | RM 700,001 – RM 750,000 | Chargeable income |
| 21% | RM 750,001 – RM 800,000 | Chargeable income |
| 22% | RM 800,001 – RM 850,000 | Chargeable income |
| 23% | RM 850,001 – RM 900,000 | Chargeable income |
| 24% | RM 900,001 – RM 950,000 | Chargeable income |
| 25% | RM 950,001 – RM 1,000,000 | Chargeable income |
| 30% | Above RM 1,000,000 | Chargeable income; non-residents taxed at flat 30% |
Standard Deduction
RM 9,000 basic personal relief for individual taxpayers. Additional reliefs for married couples, children, education, medical expenses, and EPF contributions.
Major Deductions
- Personal Relief
RM 9,000 basic personal relief for individual taxpayers.
- Married Couple Relief
Additional RM 6,000 relief for married couples.
- Child Relief
RM 1,000 per child (up to a maximum number of children).
- Education Relief
RM 5,000 per child for education expenses.
- Medical Expenses
Deduction for medical expenses not covered by insurance.
- EPF Contributions
Employee and employer contributions to the Employees Provident Fund are deductible.
- Life Insurance Premiums
Deduction for premiums paid on life insurance policies.
Tax Credits
- Reinvestment Allowance
Allowance for companies reinvesting in qualifying activities.
- Pioneer Status
Tax exemption for companies with pioneer status in qualifying industries.
- Investment Tax Allowance
Allowance for qualifying investments in certain industries.
Important Dates
Key deadlines for Malaysia tax filing, payments, and important milestones.
Tax Year Start
Malaysian tax year follows the calendar year (January 1 – December 31).
Individual Tax Filing Deadline
Deadline for individuals to file income tax returns.
Business Tax Filing Deadline
Deadline for businesses to file income tax returns.
Tax Year End
End of the Malaysian tax year.
Government Resources
For the most accurate and up-to-date information, visit the official government tax authority. Below are the most useful official portals, forms, and support resources for Malaysia taxpayers.
Lembaga Hasil Dalam Negeri Malaysia (LHDNM)
Official Malaysian tax authority — tax filing, payment, and guidance.
https://www.hasil.gov.my
e-Filing System
Online platform for filing individual and corporate income tax returns.
https://www.e-filing.hasil.gov.my
SST Registration
Sales and Service Tax registration and compliance portal.
https://www.hasil.gov.my
Tax Rate Tables
Current individual and corporate income tax rates and brackets.
https://www.hasil.gov.my/en/tax-rates
Popular Malaysia Calculators
Estimate your tax liability with our free Malaysia calculators. All calculations run locally in your browser — no data is collected.
Frequently Asked Questions
Quick answers to common questions about Malaysia taxation, filing requirements, and using our calculators.
What is the income tax rate in Malaysia?
Progressive rates from 0% to 30% for resident individuals. Non-residents are taxed at a flat rate of 30%.
What is the SST rate?
Sales Tax: typically 10%. Service Tax: 8%.
Who is a tax resident in Malaysia?
An individual who resides in Malaysia for 182 days or more in a tax year, or is a Malaysian citizen or permanent resident.
What is the corporate tax rate?
24% for resident corporations on taxable income. SMEs with paid-up capital not exceeding RM2.5 million benefit from partial exemption.
What is the tax filing deadline?
April 30th for individuals, June 30th for businesses.
Trust & Transparency
Last Updated
2025-06-15
Educational Disclaimer
The tax information and calculators on this page are for educational and informational purposes only. They do not constitute professional tax advice. Tax laws are subject to change. Always consult a qualified tax professional for advice specific to your situation.
Calculation Methodology
Tax calculations follow the Malaysian Income Tax Act 1967 and LHDNM regulations. Progressive rates are applied to chargeable income after reliefs and deductions. SST rates are applied as per the Sales Tax Act 2018 and Service Tax Act 2018.
Data Sources
- Lembaga Hasil Dalam Negeri Malaysia (LHDNM)
- Malaysian Budget 2024
- LHDNM Tax Circulars
Privacy-First
All calculations are performed locally in your browser. No personal data is collected, stored, or transmitted to any server. Your financial information never leaves your device.
