Source-cited draft: tax overview for Malaysia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Accountant-authored. Written and published by MUHAMMAD HANIS MAT HUSSIN, an accountant approved on OpenAccountants. Their licence number (CA-53636) is published on their profile, so you can check it against the register yourself. No second accountant has attested to this version yet. General reference material, not advice on your specific facts; don't file, pay, or take a position on it without a professional reviewing your situation.
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Every figure is drawn from this Tax Guide and cited to its source.
Tax administration system
Malaysia operates a self-assessment system administered by the Inland Revenue Board (LHDN / IRBM). Income tax is governed by the Income Tax Act 1967 and is broadly territorial in basis.Income Tax Act 1967
Direct tax authority
Lembaga Hasil Dalam Negeri Malaysia (LHDN) / Inland Revenue Board of Malaysia (IRBM)Income Tax Act 1967View source ↗
Indirect tax authority
Royal Malaysian Customs Department (RMCD)Sales Tax Act 2018 / Service Tax Act 2018
Currency
Malaysian Ringgit (MYR / RM)Income Tax Act 1967
Tax year (Year of Assessment) for individuals
Calendar year, 1 January to 31 DecemberIncome Tax Act 1967
Basis of taxation
Territorial — income accruing in or derived from Malaysia is taxable; foreign-source income remitted to Malaysia is generally exempt for individuals (with exemptions extended), subject to conditions ((approx — confirm scope of foreign-source income exemption))Income Tax Act 1967
Individual tax residence test
Present in Malaysia for at least 182 days in a calendar year (plus alternative linking/90-day tests)Income Tax Act 1967, Section 7View source ↗
Top marginal personal income tax rate (resident)
30%Income Tax Act 1967, Schedule 1View source ↗
Standard corporate income tax rate
24%Income Tax Act 1967, Schedule 1View source ↗
Consumption tax system
Sales and Service Tax (SST) — Malaysia has no VAT/GST (GST was abolished in 2018)Sales Tax Act 2018 / Service Tax Act 2018
Individual return deadline (employment income, Form BE)
30 April following the year of assessment (e-Filing typically extended to 15 May)Income Tax Act 1967View source ↗
Company return deadline (Form C)
Within 7 months after the company's financial year-endIncome Tax Act 1967View source ↗
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Other Malaysia computations in the OpenAccountants Tax Library.