🇲🇾 Malaysia · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
Quick answer
Malaysia's taxes are run by the Inland Revenue Board (LHDN): income tax and, for business, Sales and Service Tax (SST). Malaysia taxes largely on a territorial basis (Malaysian-source income).
Malaysia's taxes are administered by the Inland Revenue Board (LHDN): income tax and, for business, Sales and Service Tax. Malaysia taxes mainly on a territorial basis.
- The Inland Revenue Board (LHDN) administers income tax.
- Malaysia taxes mostly Malaysian-source income.
- Sales and Service Tax (SST) applies instead of a broad VAT.
Step-by-step
- 1
Determine your residency
You are a Malaysian tax resident if you are in Malaysia 182 days or more; residents get progressive rates and reliefs, non-residents a flat rate.
- 2
Register with LHDN
Register with the Inland Revenue Board (LHDN) for an income tax number (TIN).
- 3
Understand the taxes that apply
Identify personal income tax (progressive for residents), the sales and service tax (SST) for businesses, and EPF/SOCSO contributions; foreign-sourced income is largely exempt for individuals, with conditions.
- 4
Have MTD deducted
Employers deduct Monthly Tax Deduction (MTD/PCB) from salaries.
- 5
File your return
File your income tax return via LHDN e-Filing — generally by 30 April (employment) or 30 June (business).
- 6
Pay, keep records and get advice
Pay any balance, keep records, and get advice on reliefs and foreign-income conditions.
Checklist
- Residency determined (182 days)
- Income tax number (TIN) with LHDN
- Applicable taxes identified (personal income tax, SST, EPF/SOCSO)
- Monthly Tax Deduction (MTD/PCB)
- Return filed via e-Filing (30 Apr / 30 Jun)
- Reliefs claimed
- Foreign-income conditions checked
- Records kept
Official authorities
- Inland Revenue Board (LHDN)
National tax authority.
Frequently asked questions
Does Malaysia tax foreign income?
Largely no — Malaysia taxes mostly Malaysian-source income; certain foreign income remitted by residents can be taxable, so check current rules.
Is there VAT in Malaysia?
Malaysia uses Sales and Service Tax (SST) rather than a broad VAT or GST.
Am I a tax resident?
Generally if you are in Malaysia 182+ days in a year; residents get resident tax rates and reliefs.
Official-information aggregation, not legal advice. Always verify on the authority's own site.
Government portals
- MyGovernment Portal — Malaysia government services portal
- Immigration Department of Malaysia — Visas, passes (Employment / DE Rantau) and MM2H
- Inland Revenue Board (LHDN) — Income tax and tax-number registration
- Malaysian Investment Development Authority (MIDA) — Foreign investment and manufacturing/services licensing