Home / 🇲🇾 Malaysia
Malaysia is a country in Southeast Asia. The country is multi-ethnic and multi-cultural, which plays a large role in its politics. About half the population is ethnically Malay, with large minorities of Malaysian Chinese, Malaysian Indians, and indigenous peoples.
Malaysia has had one of the best economic records in Asia, with GDP growing an average of 6.5 per cent annually from 1957 to 2005. Malaysia's economy in 2014–2015 was one of the most competitive in Asia, ranking 6th in Asia and 20th in the world, higher than countries like Australia, France and South Korea.
The economy has traditionally been fuelled by its natural resources but is expanding in the sectors of science, tourism, commerce and medical tourism. Malaysia has a newly industrialised market economy, ranked third largest in Southeast Asia and 33rd largest in the world
Residency Programs (2)
Cost of Life
Taxation overview
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Tax system
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Territorial taxation
Countries with a territorial taxation system only levy income tax from local income. Foreign income usually won't be taxed by that country.
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Tax summary
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Personal income tax (PIT)
- Resident: Progressive tax up to 30% above MYR 2,000,000 ($483,559)
- Non-resident: 30%
Corporate income tax (CIT)
24%
Value-added tax (VAT) (Sales and service tax, SST)
- 10%. Sales tax
- 6%. Service tax
Social security contributions
Employees’ Provident Fund (EPF): The EPF provides for compulsory retirement savings and contributions for all Malaysian citizens and Malaysian permanent residents who are working in Malaysia. It is not compulsory for non-Malaysian citizens and non-Malaysian permanent residents to contribute to the EPF, but they may elect to do so.
- For permanent residents: 13% (below 60 years old), 6.5% (above 60) paid by employer and 11% (below 60), 5.5% (above 60) paid by employee.
- For non permanent residents: MYR 5 ($1) by by employer and 11% (below 60), 5.5% (above 60) paid by employee
Withholding tax (WHT)
- Resident WHT rates: 0% on Dividends, Interests and Royalties
- Non-resident WHT rates: 0% on Dividends, 15% on Interests, 10% on Royalties
Capital gains tax (CGT)
- As Corporation: Not taxable
- As Individual: Not taxable
Generally, gains on capital assets are not subject to tax, except for gains arising from the disposal of real property situated in Malaysia, which is subject to RPGT (up to 30%).
Net wealth/worth tax
Not taxable
Inheritance and Gift tax
Not taxable
Disclaimer: This tax summary is for information only and shall not be construed as tax advice. Every situation is different. Should you consider moving to Malaysia, we highly recommend you liaise with a local tax advisor to confirm your future tax regime.
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Year of Assessment
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YA 2021