Information Sharing

[Attention Malaysian Citizens!] What Is Tax Residency Status?

It’s not about your passport — it’s about how long you stay in Malaysia each year!

FAQs

Tax Resident: Higher Income, Higher Tax
  • Tax rates are progressive, ranging from 0% to 30% depending on individual income levels
  • Eligible for tax reliefs and rebates
  • Required to file Form B / Form BE
Non-Tax Resident: Flat Tax Rate
  • Flat rate of 30% 💸 (regardless of income level)
  • Not eligible for tax reliefs or rebates
  • Required to file Form M

**Stayed 60 days or less in a year? You may be exempt from tax altogether!

  1. You stayed in Malaysia for 182 days or more during the year.
  2. Stayed less than 182 days, but linked to a period of 182 consecutive days in the preceding or following year
    👉 The short-stay period must be due to valid reasons (e.g., work, studies, illness,  overseas travel/visits ≤14 days)
  3. Stayed more than 90 days in a year, and was a tax resident or stayed over 90 days in at least 3 of the preceding 4 years
  4. Did not stay in the country during the year, but was a tax resident in the 3 preceding years and the following year

If you’re a Malaysian citizen and meet either of the following:

  1. Employed by the government or a statutory authority
  2. Working or studying abroad under full sponsorship by your employer

You may still be automatically considered a Malaysian tax resident, even if not physically in the country.

**Last Updated on 21.07.2025