'%3e%3cpath%20fill='%23eee'%20d='M256%200h256v64l-32%2032%2032%2032v64l-32%2032%2032%2032v64l-32%2032%2032%2032v64l-256%2032L0%20448v-64l32-32-32-32v-64z'/%3e%3cpath%20fill='%23d80027'%20d='M224%2064h288v64H224Zm0%20128h288v64H256ZM0%20320h512v64H0Zm0%20128h512v64H0Z'/%3e%3cpath%20fill='%230052b4'%20d='M0%200h256v256H0Z'/%3e%3cpath%20fill='%23ffda44'%20d='M142%2078a78%2078%200%201%200%2058%20134%2063%2063%200%200%201-30%207%2063%2063%200%201%201%2030-119%2078%2078%200%200%200-58-22m46%2033-11%2024-26-6%2012%2023-21%2017%2026%205v26l20-16%2020%2016v-26l26-5-21-17%2012-23-26%206z'/%3e%3c/g%3e%3c/svg%3e)
Malaysia tax guide 2026
Malaysia taxes residents on a gentle 0-30% ladder and then leaves most wealth alone: individuals pay no capital gains tax outside real property, dividends arrive tax-paid with only a 2% charge above MYR 100,000 a year, and there is no inheritance tax at all. Foreign income brought into the country is exempt until the end of 2036 provided it was taxed where it arose.
- Rate range
- 0% – 30%
- Key allowance
- MYR 9,000 personal allowance; first MYR 5,000 of taxable income at 0%
- Tax year
- Calendar year
- Filing deadline
- 30 April (salary earners) or 30 June (business income) of the following year
Taxes covered
- Income tax30%
Ten steps from 0% to 30%; the top rate starts above MYR 2 million and non-residents pay a flat 30%.
- Dividend tax0% / 2%
Malaysian dividends arrive tax-paid under the single-tier system; only annual dividend income above MYR 100,000 picks up a 2% charge.
- Capital gains tax0%
Individuals pay no capital gains tax on shares or funds; only real property (and shares in property-rich companies) is taxed, at 0-30% by holding period.
- Crypto tax0% / 0–30%
No capital gains tax means passive crypto profits are untaxed; active trading and business-scale mining count as business income at up to 30% — reward treatment is fact-dependent.
- Social security11%
Employees put 11% of pay into the Employees Provident Fund, plus small capped injury and job-loss contributions of under MYR 42 a month combined.
- Inheritance tax0%
Malaysia has no inheritance tax and no gift tax — estates and lifetime gifts pass at 0%.
- Withholding tax10% / 15%
Non-residents face final withholding of 10% on royalties, fees and most other income, and 15% on interest and entertainer income; dividends carry none.
Special regimes
- No capital gains tax for individuals
Share and fund profits are tax-free for individuals — only real property (and shares in property-heavy companies) gets taxed, at 0-30% by holding period.
- Foreign income exemption to 2036
Foreign income a resident brings into Malaysia is exempt until 31 December 2036, provided the 'subject to tax' condition is met — actual foreign tax, or qualifying non-taxation such as source-country exemptions, thresholds or incentives.
- No inheritance or gift tax
Estates and gifts pass tax-free — Malaysia charges 0% whatever the amount.
- Returning expert programme: 15%
Malaysian specialists returning from abroad can lock in a flat 15% on employment income for 5 years.
- Global services hub: 15%
Up to 3 senior non-citizen hires of an approved hub company pay a flat 15%, with a basic salary of at least MYR 35,000 a month.
Recent changes
- 2026-01From assessment year 2026, profit shares from a limited liability partnership above MYR 100,000 are taxed at 2%; the childcare-fee relief of MYR 3,000 now covers children up to age 12, and a MYR 1,000 relief for tourist-attraction and cultural entry fees begins.
- 2025-10Employees Provident Fund contributions became mandatory for foreign employees — 2% from the worker and 2% from the employer.
- 2025-01From assessment year 2025, Malaysian dividend income above MYR 100,000 a year is taxed at 2%; a housing-loan interest relief of up to MYR 7,000 opened for purchase agreements signed 2025-2027.