Malaysia income tax

Malaysia tax calculator

Enter your income to estimate what you would pay in Malaysia, as an employee or running your own company, and see the best-value cities. Get the full breakdown plus a vetted advisor by email.

How much is income tax in Malaysia?

Malaysia taxes personal income at rates up to 30%. Foreign-sourced income received by residents is exempt to 31 Dec 2036 (conditions). Salary for work performed in Malaysia is Malaysian-source and taxed on the normal scale.

Compiled by MyNomadWorld for Malaysia and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.

Malaysia digital nomad visa

DE Rantau Nomad Pass (Professional Visit Pass, MDEC)

• Income requirement: $24,000/yr (~$2,000/mo) for tech/digital talent; $60,000/yr ($5,000/mo) for non-tech professions
• Initial length: 12 months · renewable
• Max stay: Up to 12 months, renewable once for +12 months (max 24 months)
• Tax on nomad income: Territorial taxation; foreign-sourced income of individuals generally exempt (conditions apply)
• Family / dependents: Yes

Official source: DE Rantau Nomad Pass (Professional Visit Pass, MDEC) · as of 2026

Capital gains, wealth & property tax

• Capital gains: Generally none for individuals; 10% CGT on gains from unlisted shares (from 2024); Real Property Gains Tax up to 30%
• Wealth tax: No net wealth/worth taxes in Malaysia

Inheritance & gift tax in Malaysia

No inheritance, estate, or gift taxes (estate duty abolished 1991) No estate/inheritance tax regardless of heir

Corporate tax & VAT

The standard corporate profits tax is 24%.

How to become a tax resident of Malaysia

Present in Malaysia for at least 182 days in a calendar year (or linked-period/qualifying rules).

Cost of living & lifestyle

Cost of living is about 32% of the US level, with average purchasing power near $40k (PPP). Pick a city below to see its monthly climate and cost.

Banking in Malaysia

You will want a local or multi-currency account for rent, bills and getting paid. See our guide to the best banks in Malaysia.

For receiving income and moving money the day you arrive, Wise lets you hold and convert 40+ currencies and get paid like a local. Open a free Wise account →

Wise link is an affiliate link; we may earn a commission at no cost to you.

Climate & cost by city

Average monthly temperature (°C) and rainfall. Climate: Open-Meteo ERA5; cost of living: World Bank PPP (same-year pairing), omitted where unavailable.

Malaysia tax treaties

Malaysia maintains around 75 double taxation treaties in force. They generally follow the OECD Model Convention and reduce withholding tax on cross-border dividends, interest and royalties, so the same income is not taxed twice when you move, invest or earn across borders. That is a broad network, useful for internationally mobile earners and investors.

Major treaty partners

Chips with a link open the full withholding-tax detail for that treaty pair.

Approximate size of the DTA network; confirm the specific treaty and its terms before relying on it.

Malaysia tax treaty guides

Detailed double-tax-treaty guides (withholding rates on dividends, interest and royalties) are available for 35 of Malaysia's partners:

Albania · Armenia · Azerbaijan · Bangladesh · Bosnia and Herzegovina · China · Egypt · Georgia · India · Indonesia · Iran · Jordan · Kyrgyzstan · Laos · Lebanon · Mauritius · Moldova · Mongolia · Morocco · Myanmar · Namibia · Pakistan · Papua New Guinea · Philippines · Seychelles · South Africa · Sri Lanka · Sudan · Thailand · Turkmenistan · Ukraine · Uzbekistan · Venezuela · Vietnam · Zimbabwe