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: 2025
- Tax system
- Territorial Territorial system with exceptions. Foreign-sourced income remitted to Malaysia is generally exempt for individuals (exemption for most FSI was extended). Since 2022, some foreign-sourced income may be taxable when remitted.
- Top PIT rate
- 30.0%
- Corporate tax rate
- 24.0%
- SST
- 8.0%
- Capital gains tax
- 10.0% Real Property Gains Tax (RPGT) applies to disposal of real property and shares in real property companies. Rates vary by holding period: 30% (within 3 years), 20% (4th year), 15% (5th year), 10% (6th year onwards) for citizens. Capital gains on unlisted shares taxed at 10% from 2024.
- 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% | -- | Active |
Tax flags
Digital Services Tax
Territorial Exemption
Tax residency
- Days threshold
- 182 days
- Residency rules
- Tax resident if present in Malaysia for 182 days or more in a calendar year. Also resident through various connecting criteria across consecutive years.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- April 30
- Extension deadline
- May 15
Sources
- PwC Worldwide Tax Summaries - Malaysia (accessed Mar 23, 2026) PIT, CIT, SST, withholding rates
- LHDN Malaysia (accessed Mar 23, 2026) Official tax rates