Taxes in Malaysia for Expats: Filing, Rates, IRB (2026)

Taxes in Malaysia for Expats: 2026 Guide

Malaysian taxation: rates, tax residency, IRB number, online filing. Here is everything an expat needs to know to pay taxes in Malaysia without surprises.

Tax residency

You are a tax resident if you spend 182 days or more in Malaysia over 12 months (consecutive or not). Resident status gives access to lower rates and reliefs. Before 182 days, Malaysian income is taxed at a flat 30%.

Tax rates (resident)

| Taxable income (RM/year) | Rate |

|---|---|

| 0 – 5,000 | 0% |

| 5,001 – 20,000 | 1% |

| 20,001 – 35,000 | 3% |

| 35,001 – 50,000 | 6% |

| 50,001 – 70,000 | 11% |

| 70,001 – 100,000 | 19% |

| 100,001 – 400,000 | 25% |

| 400,001 – 600,000 | 26% |

| 600,001 – 2,000,000 | 28% |

| > 2,000,000 | 30% |

Malaysia has one of the lowest top marginal rates in Asia — very attractive for expat managers.

The tax number (IRB / TIN)

Every employee must obtain a Tax Identification Number (TIN) from the Inland Revenue Board (LHDN/IRB). Your employer requests it on hiring and deducts PCB (monthly tax deduction) at source. Our bank account guide helps with related steps.

Online filing

Filing is done on the e-Filing portal (hasil.gov.my), each year before 30 April (non-business filers). Employees whose employer deducted PCB usually have nothing extra to pay, but filing remains mandatory.

Double taxation France – Malaysia

France and Malaysia have a tax treaty: you don't pay twice. Malaysian-source income is taxed in Malaysia; your French income (rental, etc.) remains taxable in France. Consult an accountant for your situation.

Retirees' taxes (MM2H)

MM2H visa holders enjoy attractive exemptions on remitted foreign-source income. See the conditions in our MM2H guide.

👉 Estimate your real purchasing power: see our cost of living guide and our average salary article.

FAQ

When do you become a tax resident in Malaysia?

After 182 days of presence over 12 months. Before that, Malaysian income is taxed at 30%.

What is the maximum tax rate in Malaysia?

30% on income above RM 2 million per year — one of the lowest rates in Asia for high earners.

Do I need to file taxes in Malaysia?

Yes, every year before 30 April via e-Filing, even if tax deducted at source covers the amount due.

Do MM2H retirees pay taxes?

Foreign-source income remitted to Malaysia is exempt for MM2H holders under certain conditions.

👉 Need help settling in? Contact us.