🇲🇾 Malaysia

Asia
2 residency programs
Territorial taxation
Kuala Lumpur, Malaysia

Countries / Malaysia

Malaysia is a country in Southeast Asia. The country is multi-ethnic and multi-cultural, which plays a large role in its politics. About half the population is ethnically Malay, with large minorities of Malaysian Chinese, Malaysian Indians, and indigenous peoples.

Malaysia has had one of the best economic records in Asia, with GDP growing an average of 6.5 per cent annually from 1957 to 2005. Malaysia's economy in 2014–2015 was one of the most competitive in Asia, ranking 6th in Asia and 20th in the world, higher than countries like Australia, France and South Korea.

The economy has traditionally been fuelled by its natural resources but is expanding in the sectors of science, tourism, commerce and medical tourism. Malaysia has a newly industrialised market economy, ranked third largest in Southeast Asia and 33rd largest in the world

Known for

Fact Sheet

Continent

Asia

Demonym

Malaysian

Calling code

+60

Driving side

Left

Motto

Unity Is Strength (Bersekutu Bertambah Mutu)
Population
30,018,242
Human development index
0.80
Life expectancy
75 years
Gini index
46.20
Unemployment rate
2%
Inflation rate
1.8%
Fertility rate
1.9

Cost of Life

Cost of Living Index
39.12
Rent Index
11.00
Groceries Index
37.58
Restaurant Price Index
22.94
Local Purchasing Power Index
64.49

Residency Programs (2)

Taxation overview

Tax system

Territorial taxation

Countries with a territorial taxation system only levy income tax from local income. Foreign income usually won't be taxed by that country.

Tax rates

Personal Income Tax (PIT)

Progressive tax up to 30% above 2,000,000 MYR (455,114 USD).

From:

  • Malaysian income, if resident
  • Malaysian director's fees, if resident or non-resident
Personal Income Tax (PIT) on foreign income

Not taxable

From:

  • Foreign income, if resident
Personal Income Tax (PIT) for non-residents

Flat tax of 30%.

From:

  • Malaysian income, if non-resident

Non-resident individuals pay tax at a flat rate of 30% with effect from YA 2020 on any income accruing in or derived from Malaysia. Other rates are applicable to special classes of income, eg interest or royalties.

Dividend Tax

Not taxable

From:

  • Worldwide dividends, if resident

Rates Year of Assessment

YA 2020

Tax Treaties (75)

Malaysia has concluded 75 tax treaties (also called double tax agreements, or DTAs) with other countries to avoid or mitigate double taxation. Such treaties may cover a range of taxes including income taxes, inheritance taxes, value added taxes, or other taxes.
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