Southeast Asia

Malaysia tax rates 2026

A territorial system. Foreign-sourced income of resident individuals is exempt, subject to conditions, through 31 December 2036.

Territorial Last verified July 2026

The taxes

Malaysia tax rates
Personal income (top)	30%Progressive, with a top rate of 30% above MYR 2m in chargeable income. Foreign income is exempt for individuals until 2036, if it was taxed abroad.
Corporate income	24%
Capital gains	There is no general capital gains tax. Real property gains tax runs up to 30%, and a 10% capital gains tax applies to disposals of unlisted shares, from 2024.
VAT / SST, with sales tax of 5-10% and service tax of 8%.	None. Malaysia uses SST instead.
Dividends (WHT)	0%, under the single-tier system. A 2% tax applies to resident-individual dividends above MYR 100k, from YA2025.
Interest (WHT)	15%
Royalties (WHT)	10%
Social security (employee)	11% to the EPF, plus roughly 0.5% for SOCSO and EIS.
Social security (employer)	12-13% to the EPF, plus roughly 1.75% for SOCSO and EIS.
Wealth tax	None
Inheritance / estate	None. Estate duty was abolished in 1991.
Property tax	Local assessment rates, known as cukai pintu, and quit rent, known as cukai tanah.
Other	SST, with sales tax of 5-10% and service tax of 8%.

How the system works

Tax system: Territorial
Foreign income: Largely outside scope (territorial)
Taxes by citizenship: No
Exit tax: No
CFC rules: No
CRS: Participating

A special regime for new arrivals

Foreign-source income received by individuals in Malaysia is exempt through to 31 December 2036 under the current exemption order, subject to conditions. This is an exemption with an expiry date, not a permanent feature of the system. Plan accordingly.

Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.