Income Tax Act 1967

  • Malaysia adopts a territorial principle of taxation, meaning only incomes which are earned in Malaysia are taxable.
  • Working for more than 60 days but less than 182 days are considered non-tax residents and are subject to a tax rate of 30 percent.
  • Tax residency ( working > than 182 days) ,a progressive personal income tax system table starting at 0 percent, and capped at 30 percent & eligible for tax deduction. Criteria of > 182 days refer ACT can be current year or accumulative.
  • Foreign Worker working in Malaysia for less than 60 days are exempt from filling out taxes.
  • The tax year runs in accordance with the calendar year, beginning on January 1 and ending on December 31. All tax returns must be completed and returned before April 30 of the following year.