Taxes
Malaysia — Tax: Income Tax
Malaysia operates a progressive individual income tax system from 0% to 30% for residents. The first RM5,000 of chargeable income is always tax-free, and every taxpayer receives an automatic RM9,000 personal relief reducing chargeable income before calculation. Taxpayers with chargeable income of RM35,000 or below receive an additional RM400 tax rebate applied directly against the final tax bill. In the progressive structure, each bracket's rate applies only to income within that band, so moving into a higher bracket only affects the additional income above the prior threshold. Non-residents are taxed at a flat 30% on all Malaysian-source income, with no personal reliefs or progressive-rate access.
VerifiedProfessional tax guide — not a government sourcePwC Worldwide Tax Summaries — MalaysiaLast reviewed: 2026-10-18
Key facts
- Progressive resident rates: 0%-30%; first RM5,000 always tax-free.
- Automatic RM9,000 personal relief applies to all taxpayers, reducing chargeable income.
- RM400 tax rebate for chargeable income ≤RM35,000, applied directly to the final tax bill.
- Non-residents: flat 30% on all Malaysian-source income, no reliefs or progressive rates.
Costs
- Non-resident flat tax rate: 30%
- Automatic personal relief: RM9,000
- Tax rebate (chargeable income ≤RM35,000): RM400
Common mistakes
- Assuming non-residents get any personal reliefs — non-residents pay a flat 30% with zero reliefs, unlike residents.