Tax Overview in Malaysia

Tax overview for Malaysia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Malaysia · tax year 2025 · changed 25 Jun 2026

Approved by Muhammad Hanis Mat Hussin · 3 Nov 2026

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Key figures: Malaysia, 2025

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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 ↗

The full skill

Malaysian tax system at a glance

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 1967)
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 December (Income 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) days (Income Tax Act 1967, Section 7)
Top marginal personal income tax rate (resident) — 30% % (Income Tax Act 1967, Schedule 1)
Standard corporate income tax rate — 24% % (Income Tax Act 1967, Schedule 1)
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 1967)
Company return deadline (Form C) — Within 7 months after the company's financial year-end (Income Tax Act 1967)

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Approval history

Past review records describe the work recorded at the time. The approval shown at the top of this skill applies to the current text.

MUHAMMAD HANIS MAT HUSSIN, CA-53636
8 Jul 2026 · MY
Historical outcome: approved · Record status: superseded

Issue history

No issues recorded.

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Malaysian tax system at a glance

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 1967)

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 December (Income 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) days (Income Tax Act 1967, Section 7)

Top marginal personal income tax rate (resident) — 30% % (Income Tax Act 1967, Schedule 1)

Standard corporate income tax rate — 24% % (Income Tax Act 1967, Schedule 1)

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 1967)

Company return deadline (Form C) — Within 7 months after the company's financial year-end (Income Tax Act 1967)