Income Tax Tables in Malaysia for 2022-2024

In Malaysia, there are different rules and procedures for tax registration, payments and applicable exemptions, depending on whether the tax registration is done by an individual, a company or an employer. 

An individual may register for a Tax Identification Number (TIN) electronically through the government’s My Tax Portal. However, individual citizens and permanent residents aged 18 and above are automatically registered through data obtained from the National Registration Department. 

Companies, limited liability partnerships, trust bodies and cooperative societies are required to furnish the Income Tax Return Form (ITRF) (including Form E). In line with the digitalization of the tax service, the use of electronic services (e-Services) has been mandated with effect from 1 September 2023.

The taxation system is administered by one of the main revenue collecting agencies of the Ministry of Finance Malaysia, the Inland Revenue Board of Malaysia (IRBM) (Lembaga Hasil Dalam Negeri Malaysia).

The Income Tax Act 1967 provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding tax brackets and tax rates, for effective tax planning and to remain compliant with Malaysian tax laws.

Here you will learn about:

• headline tax rates
• personal income tax (PIT) rates 
• Employee Provident Fund (EPF) contributions
• real property gains tax (RPGT) rates for individuals
• corporate income tax (CIT) rates 
• real property gains tax (RPGT) rates for corporations
• capital gains tax (CGT) rates for corporations
• withholding tax rates for residents and non-residents
• goods and services tax (GST) rates

Headline Tax Rates in Malaysia

Personal Income Tax (PIT) Tables in Malaysia FY 2024

Income tax is charged for every year of assessment on the income of an individual that is derived in Malaysia or received in Malaysia from outside the country. Where an individual’s total taxable income exceeds the threshold, they are required to register for an income tax file. The scope of taxation will depend on the individual’s residence status.

Income derived from outside Malaysia and received in Malaysia is tax exempted.

Non-resident individuals are taxed at a flat rate of 30% on total taxable income.

Personal Income Tax Due Dates

Employees' Provident Fund (EPF) Contributions

The Employees’ Provident Fund is a compulsory pension scheme. It manages retirement savings and encompasses compulsory contributions made by Malaysian citizens and permanent residents working in Malaysia.

Real Property Gains Tax (RPGT) Rates for Individuals in Malaysia

Capital gains on disposals of real properties are subject to RPGT in Malaysia as tabulated below:

Corporate Income Tax Rates in Malaysia FY 2024

Corporate Income Tax Due Dates

Real Property Gains Tax (RPGT) Rates for Corporations in Malaysia

Real property gains tax (RPGT) is charged, for corporations, on any gains made from the disposal of property. This can be any land situated in Malaysia and include an interest, an option, or other right in or over such land. It can also include shares in a real property company (RPC) which is a controlled company holding property or shares in another RPC, where the total defined value is not less than 75% of its total tangible assets.

However, with the implementation of capital gains tax (CGT) from 1 January 2024, RPGT will not apply to a company, limited liability partnership, trust body or co-operative society (other than a Labuan entity) on the gains from disposal of shares in a RPC which are subject to CGT.

Capital Gains Tax for Corporations in Malaysia

Corporations in Malaysia, whether companies, limited liability partnerships (LLPs), co-operative or trust bodies, are required to pay capital gains tax. The rates vary depending on whether these are gains from:

• shares in unlisted companies incorporated in Malaysia
• shares in a foreign incorporated company that derives value from property in Malaysia
• the disposal of all types of capital assets outside Malaysia that is remitted into Malaysia

However, certain exemptions are provided, for example, gains as described above which are made on or after 1 January 2024 until 29 February 2024.

Withholding Tax Rates for Residents and Non-Residents in Malaysia

Withholding tax (WHT), with different tax brackets, apply to: 

• resident corporations 
• resident individuals 
• non-resident corporations
• non-resident individuals for residents and non-residents in Malaysia. 

The tax rates may vary depending on whether the WHT applies to dividends, interest, royalties or special classes of income. However, as Malaysia has double taxation treaties (DTTs) with various countries, a taxpayer may benefit from the provisions of these DTTs.

Goods and Services Tax Rates in Malaysia