🇲🇾 Malaysia
Rich in culture and opportunity, with favorable taxes and a strategic location for business in Asia.
Malaysia Citizenship and Naturalization
Grade:
B-Global Rank: 44
Visa-free Access
154 out of 195 countries
Access to Major Destinations
- European Union
- United Kingdom
- Canada
- United States
- China
- Russia
- Japan
| Category | Details |
|---|---|
Citizenship by Descent |
|
Naturalizations |
|
Spouse Naturalization |
|
Birthright Citizenship |
|
Economic Citizenship (Investment) |
|
Other Provisions |
|
Citizenship by Exception |
|
Taxation Overview
Personal Tax Overview: Malaysia 🇲🇾
Key information about personal taxation in Malaysia
Tax Residency
Normal rule: 182 days
Special rule: No information
Special Tax Regime
No information
| From (MYR) | To (MYR) | Tax 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% |
| 2,000,001 | and above | 30% |
Dividend Tax
2%
The new 2% dividend tax, effective from 1 January 2025, exempts dividends from foreign sources, companies with pioneer status or reinvestment allowances, tax-exempt shipping companies, cooperatives, closed-end funds, Labuan entities, and certain public funds like the Employees Provident Fund (EPF) and Amanah Saham Nasional (ASNB).
Capital Gains Tax
10%
Capital gains are generally exempt from tax in Malaysia, except for real property. The main exemption condition is that the asset must not be real property (land and buildings) or shares in real property companies. Gains from most other assets including stocks, bonds, and other securities are completely exempt from taxation regardless of holding period.
Property Rental Income
30%
Property rental income is taxed at progressive rates (0%-30%) for residents and a flat 30% for non-residents. Landlords can deduct expenses like repairs, insurance, and taxes from their rental income, but not initial costs like advertising or legal fees. Failure to declare rental income may result in penalties.
Property Tax
Yes
Property tax includes Quit Rent (Cukai Tanah), an annual land tax, and Assessment Tax (Cukai Pintu), a local tax based on the annual rental value of the property. Additionally, property transactions are subject to Stamp Duty, and profits from property sales are taxed under the Real Property Gains Tax (RPGT). Rates vary depending on location, property type, and holding period.
Inheritance Tax
No
Malaysia does not impose inheritance, estate, or gift taxes.
Wealth Tax
No
VAT
10%
Sales and Service Tax (SST) of 10% applies to the sale of goods and specific services, replacing the previous Goods and Services Tax (GST) system in Malaysia since September 2018.
CFC Laws
No
