- Capital gains tax rate 10 30
- Income tax brackets updated
MY
Malaysia
MY · MYS · #66 · 23 cities
Nomad score
62/100
Compare
Top income tax
30.0%
Territorial system
Corporate tax
24.0%
SST
8.0%
standard rate
Tax residency
182 days
75 tax treaties
Malaysia tax profile
Data year: 2026
- Tax system
- Territorial Malaysia taxes income accruing in or derived from Malaysia. Resident individuals and companies are also taxed on foreign-sourced income received in Malaysia, but qualifying foreign-sourced income remitted from 1 January 2022 to 31 December 2036 may be exempt subject to conditions. Non-residents pay a flat 30% on Malaysia-source income. The calendar year is the year of assessment.
- Top PIT rate
- 30.0%
- Corporate tax rate
- 24.0%
- SST
- 8.0%
- Capital gains tax
- 30.0% Individuals: real property gains tax (RPGT) on disposals of Malaysian real property and shares in real property companies, with rates up to 30% for citizens and permanent residents who sell within three years (0% after five years for citizens). Companies, LLPs, co-operatives and trust bodies: capital gains tax at 10% on net gain from 2024 on Malaysian unlisted shares and certain other assets (optional 2% on gross for pre-2024 acquisitions where applicable); foreign capital gains remitted to Malaysia may be taxed at corporate rates unless a temporary exemption applies.
- Social security (employee)
- 11.0%
- Social security (employer)
- 13.0%
- Dividend withholding
- 0.0%
- Interest withholding
- 15.0%
- Royalty withholding
- 10.0%
- Treaty count
- 75
Income tax brackets
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| MYR 0 | MYR 5,000 | 0.0% |
| MYR 5,000 | MYR 20,000 | 1.0% |
| MYR 20,000 | MYR 35,000 | 3.0% |
| MYR 35,000 | MYR 50,000 | 6.0% |
| MYR 50,000 | MYR 70,000 | 11.0% |
| MYR 70,000 | MYR 100,000 | 19.0% |
| MYR 100,000 | MYR 400,000 | 25.0% |
| MYR 400,000 | MYR 600,000 | 26.0% |
| MYR 600,000 | MYR 2,000,000 | 28.0% |
| MYR 2,000,000 | and above | 30.0% |
Special regimes (1)
| Name | Rate/amount | Duration | Status |
|---|---|---|---|
| Labuan International Business and Financial Centre Labuan entities can elect to be taxed at 3% of net audited profits for trading a... | 3.0% | Duration not recorded | Active |
Tax flags
Digital Services Tax
Territorial Exemption
Tax residency
- Days threshold
- 182 days
- Residency rules
- An individual is generally tax resident if present in Malaysia for 182 days or more in a calendar year. LHDN also applies additional day-count and connecting tests across consecutive years. Non-residents cannot claim personal reliefs and do not use the graduated resident rates.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- April 30
- Extension deadline
- May 15
Sources
- LHDN — individual tax rates (accessed Oct 9, 2026) Progressive PIT schedule published for YA 2023–2025 (unchanged for YA 2026 per Budget 2026 feedback)
- LHDN — Budget 2026 tax memorandum (accessed Oct 9, 2026) Confirms resident PIT scale 0–30% and 24% CIT for YA 2026
- PwC Worldwide Tax Summaries — Malaysia (individual PIT) (accessed Oct 9, 2026) PIT bands, non-resident 30% flat, special 15% employment incentives
- PwC Worldwide Tax Summaries — Malaysia (corporate CIT) (accessed Oct 9, 2026) 24% CIT, SME tiered rates, GloBE MTT/QDMTT from 2025
- PwC Worldwide Tax Summaries — Malaysia (withholding) (accessed Oct 9, 2026) Non-treaty WHT 0% dividends, 15% interest, 10% royalties; treaty network listing
- PwC Worldwide Tax Summaries — Malaysia (other taxes) (accessed Oct 9, 2026) SST 8%/6%, RPGT corporate table, EPF rates
- PwC Worldwide Tax Summaries — Malaysia (income determination) (accessed Oct 9, 2026) Foreign income remittance rules, dividend and LLP 2% charges, CGT scope
- Royal Malaysian Customs — digital service tax order 2024 (accessed Oct 9, 2026) Digital services taxed at 8% from 1 March 2024