Malaysia
South-Eastern Asia · MY · 73 treaties
What is the tax system in Malaysia?
Malaysia operates a territorial tax system. The top personal income tax rate is 30%, and the corporate tax rate is 24%.
Tax profile
| Corporate income tax | 24% |
| Withholding — dividends | 0% |
| Withholding — interest | 15% |
| Withholding — royalties | 10% |
| VAT / GST (standard) | 0% |
| Personal income (top rate) | 30% |
| Capital gains | n/a |
| Tax system | Territorial |
| Residency threshold | 182 days |
| Exit / departure tax | No |
| CFC rules | No |
| Transfer pricing | Strict |
| Digital nomad visa | DE Rantau Nomad Pass |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | Implemented |
Common questions
- What are the tax implications for cryptocurrency in Malaysia?
- Cryptocurrency is taxed specially in Malaysia, with a headline rate of 30%. Long-term gains are exempt.
- How can one obtain residency in Malaysia?
- Residency in Malaysia is considered moderate. Options include a golden visa requiring a minimum investment of $200,000 USD, and a nomad visa.
- Does Malaysia have a tax treaty network?
- Yes, Malaysia has 73 tax treaties.
Tax residency
ModerateWhat makes you a tax resident — and how hard it is to stop being one.
- 182 days or more in the basis year
- less than 182 days but linked to a 182+ day period spanning adjacent years
- 90 days or more in the basis year plus resident/present for 3 of the previous 4 years
- resident for the previous 3 years and resident again in the following year
- deemed resident for certain citizens employed by public services/statutory authority while posted abroad
Malaysia’s residence rules are mainly day-count and look-back/look-forward tests, so leaving can be straightforward if you also avoid linked periods and multi-year continuity. It is harder than a pure 183-day test because residence can continue through adjacent-year linkage and the 3-of-4-years / prior-3-plus-following-year rules.
Source: Inland Revenue Board of Malaysia (LHDN/IRBM)
Tax treaty network (88)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Albania | 0% | 10% | 10% |
| Australia | 0% | 15% | 10% |
| Austria | 0% | 15% | 10% |
| Bahrain | 0% | 5% | 8% |
| Bangladesh | 0% | 15% | 10% |
| Belgium | 0% | 15% | 10% |
| Brunei | 0% | 10% | 10% |
| Bulgaria | — | — | — |
| Cambodia | 0% | 10% | 10% |
| Canada | 0% | 15% | 10% |
| Chile | 0% | 15% | 10% |
| China | 0% | 10% | 10% |
| Croatia | 0% | 10% | 10% |
| Cyprus | — | — | — |
| Czechia | 0% | 12% | 10% |
| Denmark | 0% | 15% | 10% |
| Egypt | 0% | 15% | 10% |
| Fiji | 0% | 15% | 10% |
| Finland | 0% | 15% | 10% |
| France | 0% | 15% | 10% |
| Germany | 0% | 10% | 7% |
| Hungary | 0% | 15% | 10% |
| India | 0% | 10% | 10% |
| Indonesia | 0% | 10% | 10% |
| Iran | 0% | 15% | 10% |
| Ireland | 0% | 10% | 8% |
| Italy | 0% | 15% | 10% |
| Japan | 0% | 10% | 10% |
| Jordan | 0% | 15% | 10% |
| Kazakhstan | 0% | 10% | 10% |
| Kuwait | 0% | 10% | 10% |
| Laos | 0% | 10% | 10% |
| Lebanon | — | — | — |
| Luxembourg | 0% | 10% | 8% |
| Malta | 0% | 15% | 10% |
| Mauritius | 0% | 15% | 10% |
| Mexico | — | — | — |
| Mongolia | 0% | 10% | 10% |
| Morocco | 0% | 10% | 10% |
| Myanmar | 0% | 10% | 10% |
| Netherlands | 0% | 10% | 8% |
| New Zealand | 0% | 15% | 10% |
| Norway | 0% | 15% | 10% |
| Pakistan | 0% | 15% | 10% |
| Philippines | 0% | 15% | 10% |
| Poland | 0% | 10% | 8% |
| Qatar | 0% | 5% | 8% |
| Romania | 0% | 15% | 10% |
| Russia | 0% | 10% | 10% |
| Saudi Arabia | 0% | 5% | 8% |
| Singapore | 0% | 10% | 8% |
| South Africa | 0% | 10% | 5% |
| South Korea | 0% | 15% | 10% |
| Spain | 0% | 10% | 7% |
| Sri Lanka | 0% | 10% | 10% |
| Sweden | 0% | 10% | 8% |
| Switzerland | 0% | 10% | 10% |
| Syria | 0% | 10% | 10% |
| Taiwan | 0% | 10% | 10% |
| Thailand | 0% | 15% | 10% |
| Turkey | 0% | 15% | 10% |
| Turkmenistan | 0% | 10% | 10% |
| Ukraine | 0% | 10% | 8% |
| United Arab Emirates | 0% | 5% | 10% |
| United Kingdom | 0% | 10% | 8% |
| Uzbekistan | 0% | 10% | 10% |
| Vietnam | 0% | 10% | 10% |
| Zimbabwe | 0% | 10% | 10% |
| Bosnia and Herzegovina | 0% | 10% | 8% |
| Estonia | — | — | — |
| Kenya | — | — | — |
| Lithuania | — | — | — |
| Oman | — | — | — |
| Palestine | — | — | — |
| Republic of Serbia | — | — | — |
| Slovenia | — | — | — |
| Tajikistan | — | — | — |
| Hong Kong S.A.R. | 0% | 10% | 8% |
| Kyrgyzstan | 0% | 10% | 10% |
| Maldives | 0% | 10% | 10% |
| Namibia | 0% | 10% | 5% |
| Papua New Guinea | 0% | 15% | 10% |
| San Marino | 0% | 10% | 10% |
| Senegal | 0% | 10% | 10% |
| Slovakia | 0% | 10% | 10% |
| Sudan | 0% | 10% | 10% |
| Venezuela | 0% | 15% | 10% |
| Seychelles | 0% | 10% | 10% |