Malaysian Non-resident personal income tax rates

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You are considered a non-resident under Malaysian tax law if you stay less than 182 days in Malaysia in a year, regardless of your citizenship or nationality.
Non-resident individual is taxed at a different tax rate on income earned/received from Malaysia.

Below are the income tax rates applicable to non-residents, provided by the The Inland Revenue Board (IRB) / Lembaga Hasil Dalam Negeri (LHDN) Malaysia.

 

Non-resident Tax rate

Types Of Income

Tax Rate %

Business, trade or profession
Employment
Dividends
Rents

26

Public entertainer
Interest

15

Royalty

10

Payments for services in connection with the use of property or installation, operation of any plant or machinery purchased from a non-resident

10

Payments for technical advice, assistance or services rendered in connection with technical management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme

10

Rent or other payments for the use of any movable property

10

 

You will not be taxable if:

  • Employed in Malaysia for less than 60 days
  • Employed on board a Malaysian ship
  • Age 55 years old and receiving pension from Malaysian employment
  • Receiving interest from banks
  • Receiving tax exempt dividends

If taxable, you are required to fill in M Form.

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