±JOIN OUR NEWSLETTER
±Compare Expat Providers
±Expat Focus Partners
±Latest Financial Articles
· Moving Abroad, Before And After Brexit
· Expat Focus Financial Update February 2018
· How To Navigate Brexit When Sending Money Abroad
· Expat Focus Financial Update January 2018
· Top Tips for Buying a Property Overseas in 2018
· Expat Focus Financial Update December 2017
· World Events And Currency: Why Politics Affect An Exchange Rate
· Expat Focus Financial Update November 2017
· What Might Brexit Mean For Expat Finances?
Income TaxBack to top Back to main Skip to menu
Malaysia - Income Tax
Residency for Tax Purposes
In Malaysia, regardless of citizenship, if an individual satisfies any of the following criteria then he / she is considered to be liable for income tax:
1. The individual has been resident in Malaysia for 182 days of the tax year
2. The individual has been resident in Malaysia for less than 182 days of the tax year, but was resident in the country for a total of 182 consecutive days linked to days from the year immediately preceding or following that tax year
3. The individual has been resident in Malaysia for at least 90 days of the current tax year and was resident in Malaysia for at least 90 days in three of the four preceding years
4. The individual will be resident in Malaysia in the year following and has been resident in Malaysia in the three years preceding the one being taxed.
Anybody fulfilling any of these criteria is liable to pay income tax in Malaysia. Individuals who spend less than 182 days per year in the country are classed as non-residents and are subsequently subject to different tax regulations. Retired individuals above the age of 55 are exempt from income tax, as are those receiving a pension from their employment in Malaysia or living off bank interest. Individuals who have less than 60 days employment in the country in a tax year are not liable to pay income tax either.
Even if you are not a Malaysian citizen, if you have a total of more than 60 days employment in the tax year, and if you are resident in the country for more than 182 days, then you are liable to pay income tax as a British expatriate.
Income Tax rates (for 2013)
Chargeable Income - Tax Rate - Cumulative Tax
RM 0 – RM 2,500 0% RM 0
RM 2,501 – RM 5,000 1% RM 25
RM 5,001 – RM 10,000 3% RM 175
RM 10,001 – RM 20,000 3% RM 475
RM 20,001 – RM 35,000 7% RM 1,525
RM 35, 001 – RM 50,000 12% RM 3,325
RM 50,001 – RM 70,000 19% RM 7,125
RM 70,001 – RM 100,000 24% RM 14,325
RM 100,001 and above 26%
The type of form you will have to fill out depends entirely on your source of income. You can now fill out the forms online at www.hasil.gov.my. This website often comes up automatically in Malay, but there is an icon in the top right hand corner of the page which allows you to switch the language to English.
The deadlines for the submission of return forms are as follows:
1. BE Form, for individuals whose income is without business source the deadline is 30th April every year
2. B Form, for individuals whose income includes business source, the deadline is 30th June every year
3. M Form, for a non-resident individual (resident in Malaysia for less than 90 days in the tax year) whose income is without business source, the deadline is 30th April every year
4. M Form, for a non-resident individual (resident in Malaysia for less than 90 days in the tax year) whose income includes business source, the deadline is 30th Jun every year
5. P Form, for a partnership, the deadline is 30th June every year.
UK / Malayisa Double Taxation Agreement
There is a (very lengthy) document which outlines the double taxation agreement established between the UK and Malaysia in 1996. A full copy of this document can be found by clicking on the following link: www.hmrc.gov.uk/taxtreaties/in-force/malaysia.pdf .
The objectives of the DTA are quite simple:
1) to create a favourable climate for foreign investments
2) to make Malaysia’s special tax incentives completely effective for taxpayers of foreign countries
3) to prevent tax avoidance and evasion
4) to obtain more effective relief from double taxation when compared to the relief available under unilateral regulations.
If you have any questions about income tax whilst in Malaysia, the best thing to do is to give the tax office hotline a call. Their information is as follows:
Inland Revenue Board of Malaysia
Tel: 00 60 3 1800-88-2716
Expat Health Insurance Partners
Our award-winning expatriate business provides health benefits to more than 650,000 members worldwide. In addition, we have helped develop world-class health systems for governments, corporations and providers around the world. We want to be the global leader in delivering world-class health solutions, making quality health care more accessible and empowering people to live healthier lives.
AXA - Global Healthcare
As the global healthcare specialists for AXA, the world’s number one insurance brand, we can help you get fast access to expert medical care, whenever and wherever you need it. All our plans include evacuation and repatriation, a second medical opinion service and extra support from a dedicated case manager if you’re diagnosed with cancer. You’ll also have 24/7 support from our caring multilingual team - we’ll always remember you’re a person, not a case number.
At Bupa we have been helping individuals and families live longer, healthier, happier lives for over 60 years. We are trusted by expats in 190 different countries and have links with healthcare organisations throughout the world. So whether you're moving abroad for a change of career or a change of scene, with our international private health insurance you will always be in safe hands.
Cigna has worked in international health insurance for more than 30 years. Today, Cigna has over 71 million customer relationships around the world. Looking after them is an international workforce of 31,000 people, plus a network of over 1 million hospitals, physicians, clinics and health and wellness specialists worldwide, meaning you have easy access to treatment.