What Is the Tax Rate for Foreigners Working in Malaysia?

Learn about Malaysia's tax rates for foreigners, including exemptions and non-resident flat tax rates based on duration of stay.

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In Malaysia, the tax rate for foreigners who are employed in the country for less than 60 days is 0%, making them exempt from paying income tax. However, foreigners staying and working for a period ranging from 60 days to 182 days within a year are considered non-residents and are subjected to a flat income tax rate of 30%. It's crucial for foreigners to keep track of their days spent in Malaysia to determine their tax residency status accurately.

FAQs & Answers

  1. What determines tax residency status for foreigners in Malaysia? Foreigners are considered non-residents for tax if they stay and work in Malaysia between 60 to 182 days in a year; less than 60 days exempts them from income tax.
  2. What is the income tax rate for foreigners working in Malaysia over 60 days? Foreigners staying and working between 60 and 182 days in Malaysia are taxed at a flat income tax rate of 30% as non-residents.
  3. Are foreigners exempt from income tax if they work in Malaysia for less than 60 days? Yes, foreigners employed in Malaysia for under 60 days are exempt from paying income tax.

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