{"id":102052,"date":"2022-09-12T11:55:22","date_gmt":"2022-09-12T11:55:22","guid":{"rendered":"https:\/\/www.expatinfodesk.com\/?page_id=102052"},"modified":"2023-11-30T14:22:42","modified_gmt":"2023-11-30T14:22:42","slug":"tax-for-ex-pats-in-malaysia","status":"publish","type":"page","link":"https:\/\/www.expatinfodesk.com\/destinations\/kuala-lumpur\/tax-for-ex-pats-in-malaysia\/","title":{"rendered":"Tax for ex-pats in Malaysia"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row type=&#8221;container&#8221; padding_top=&#8221;&#8221; padding_bottom=&#8221;&#8221; el_class=&#8221;three-top-tips&#8221; css=&#8221;.vc_custom_1599875304748{margin-left: 0px !important;border-right-width: 0px !important;padding-right: 0px !important;padding-left: 0px !important;border-right-color: #ffffff !important;}&#8221;][vc_column width=&#8221;2\/3&#8243;][vc_column_text]<\/p>\n<p class=\"western\">Tax is a topic that we all prefer to ignore. However, as an ex-pat, it&#8217;s necessary to understand how the tax laws in Malaysia affect you.<\/p>\n<h3 class=\"western\">Need to know<\/h3>\n<ul>\n<li>\n<p class=\"western\">The Malaysian tax year runs from 1 January to 31 December.<\/p>\n<\/li>\n<li>\n<p class=\"western\">Tax returns are to be lodged by 30 April.<\/p>\n<\/li>\n<li>\n<p class=\"western\">The tax authority is the IRBM, <a href=\"https:\/\/www.hasil.gov.my\/en\/\">The Inland Revenue Board of Malaysia<\/a>.<\/p>\n<\/li>\n<li>\n<p class=\"western\">For tax purposes, you are a resident if you have lived 182 days in a calendar year in Malaysia.<\/p>\n<\/li>\n<li>\n<p class=\"western\">You can use an <a href=\"https:\/\/www.imoney.my\/calculator\/income-tax-calculator\">income tax calculator<\/a> to estimate your taxes.<\/p>\n<\/li>\n<li>\n<p class=\"western\">Consult the <a href=\"https:\/\/www.hasil.gov.my\/en\/\">Inland Revenue Board of Malaysia website<\/a> for all tax-related queries and which form you need to file.<\/p>\n<\/li>\n<li>\n<p class=\"western\">It\u2019s often advisable to employ a reputable tax agent to assist you with your tax return and any tax-related queries.<\/p>\n<\/li>\n<\/ul>\n<h3 class=\"western\">What taxes apply to ex-pats?<\/h3>\n<p class=\"western\">The amount of tax payable in Malaysia depends on your residence status and the kind of visa you have.<\/p>\n<ul>\n<li>\n<p class=\"western\">Holders of the MM2H visa, Malaysia My Second Home, pay no tax on their earnings. This visa is a government initiative to attract foreign investors and promote Malaysia as a safe and positive country to live in for foreigners.<\/p>\n<\/li>\n<li>\n<p class=\"western\">If you qualify as a resident in Malaysia, you will pay the same amount of tax as Malaysians.<\/p>\n<\/li>\n<\/ul>\n<p class=\"western\">Taxable income of RM 50,001 to RM 70,000 pay 13% tax<\/p>\n<p class=\"western\">Taxable income of RM 70,001 to RM 100,000 pay 21% tax<\/p>\n<p class=\"western\">Taxable income of RM 100,001 to RM 250,000 pay 24% tax<\/p>\n<p class=\"western\">Taxable income of RM 250,001 to RM 400,000 pay 24.5% tax<\/p>\n<p class=\"western\">With over RM 2,000,001 paying 30% tax<\/p>\n<ul>\n<li>\n<p class=\"western\">Non-residents are taxed at a flat 30% on all income.<\/p>\n<\/li>\n<\/ul>\n<h3 class=\"western\">Goods and Services Taxes in Malaysia<\/h3>\n<p class=\"western\">The GST in Malaysia is known as Sales and Services tax SST and is 10 % on most goods and services.<\/p>\n<p class=\"western\">SST is reduced to 6 % for <span style=\"color: #000000;\"><span style=\"font-size: medium;\">restaurants, hotels and accommodations, car hire, domestic flights, insurance, credit cards, legal and accounting, business consulting, electricity, pay-TV, and digital supplies.<\/span><\/span><\/p>\n<p class=\"western\"><span style=\"color: #000000;\">SST is reduced to 5 % for food and petrol and building materials.<\/span><\/p>\n<p class=\"western\"><span style=\"color: #000000;\">The SST is payable by the consumer in the price of the goods or services.<\/span><\/p>\n<h3 class=\"western\">Capital Gains Tax<\/h3>\n<p class=\"western\">If you decide to sell a property, business, or residential, you will be subject to tax on any profit.<\/p>\n<p class=\"western\">In case your home sells at a loss, no tax will be payable.<\/p>\n<h3 class=\"western\">In Conclusion<\/h3>\n<p class=\"western\">No one looks forward to tax time. Completing one&#8217;s tax form is a stressful chore for most people, especially, when tax rules change each year. Therefore, it is advisable to consult a reputable tax agent who knows the ins and outs and can save you the most money.<\/p>\n<p>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/3&#8243; el_class=&#8221;city-side-bar&#8221;][vc_row_inner el_class=&#8221;sidebar-section-one&#8221;][vc_column_inner][vc_custom_heading text=&#8221;Top Tips&#8221; font_container=&#8221;tag:h4|font_size:24|text_align:left|color:%23ffffff&#8221; google_fonts=&#8221;font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:400%20regular%3A400%3Anormal&#8221;][vc_separator color=&#8221;#ffffff&#8221; type=&#8221;full_width&#8221; thickness=&#8221;1&#8243; up=&#8221;&#8221; down=&#8221;&#8221;][vc_column_text]<\/p>\n<table class=\"table table-condensed sidebar-section-one-table\" style=\"height: 332px;\" width=\"922\">\n<tbody>\n<tr>\n<td class=\"number\">01<\/td>\n<td>Do not drink tap water. It may be safe in some regions, but best to stay on the safe side and only drink bottled water or fill your reusable at your hotel.<\/td>\n<\/tr>\n<tr>\n<td class=\"number\">02<\/td>\n<td>Respect the dress code. For women, bring along a scarf. If you intend on visiting any of the beautiful mosques, you will need to cover your hair. Entry to the mosque will not be allowed if you are not dressed respectably. Shorts and short skirts won&#8217;t be allowed.<\/td>\n<\/tr>\n<tr>\n<td class=\"number\">03<\/td>\n<td>Respect the culture. Even though Malaysia is a liberal country in regards to dress, it is still advisable to dress more modestly. Super short shorts and revealing tops will get you some unwanted attention.<\/td>\n<\/tr>\n<tr>\n<td class=\"number\">04<\/td>\n<td>Download the Grab application for booking your ride. Grab is an alternative to taxis and the Southeast Asian equivalent of Uber.<\/td>\n<\/tr>\n<tr>\n<td class=\"number\">05<\/td>\n<td>Driving is on the left-hand side of the road as in the United Kingdom, so it&#8217;s is necessary to keep your wits about you for those first days driving in Malaysia.<\/td>\n<\/tr>\n<tr>\n<td class=\"number\">06<\/td>\n<td>Malaysia has some of the most harshest drug laws. Don&#8217;t get caught with drugs.<\/td>\n<\/tr>\n<tr>\n<td class=\"number\">07<\/td>\n<td>Homosexuality is illegal in Malaysia. Therefore, it is necessary to keep a low profile and refrain from public displays of affection.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner el_class=&#8221;sidebar-section-two&#8221;][vc_column_inner][vc_custom_heading text=&#8221;Useful links&#8221; font_container=&#8221;tag:h4|font_size:24|text_align:left&#8221; google_fonts=&#8221;font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:400%20regular%3A400%3Anormal&#8221; el_class=&#8221;useful-links&#8221;][vc_separator color=&#8221;#ffffff&#8221; type=&#8221;full_width&#8221; thickness=&#8221;1&#8243; up=&#8221;&#8221; down=&#8221;&#8221;][vc_column_text el_class=&#8221;useful-links&#8221;]<a href=\"https:\/\/www.wonderfulmalaysia.com\">https:\/\/www.wonderfulmalaysia.com<\/a><\/p>\n<p>A general information site for Malaysia. It includes tips and recommendations as well as articles on Malaysian life.<\/p>\n<p><a href=\"http:\/\/www.visitkl.gov.my\">http:\/\/www.visitkl.gov.my<\/a><\/p>\n<p>Exciting, surprising, enticing. The official website for everything to do and see in Kuala Lumpur.<\/p>\n<p><a href=\"https:\/\/www.facebook.com\/groups\/176705455831148\/\">https:\/\/www.facebook.com\/groups\/176705455831148\/<\/a><\/p>\n<p>A Facebook group for ex-pats living in Kuala Lumpur. A practical resource for newbies relocating to KL. https:\/\/www.malaymail.com\/<\/p>\n<p>One of the Malaysian newspapers in English, but there are many.<\/p>\n<p><a href=\"https:\/\/esd.imi.gov.my\/portal\/expatriates\/myxpats\/key-services\/employment-pass\/\">https:\/\/esd.imi.gov.my\/portal\/expatriates\/myxpats\/key-services\/employment-pass\/<\/a><\/p>\n<p>The government site for the different visas for ex-pats in Malaysia.<\/p>\n<p><a href=\"https:\/\/www.redbus.my\/\">https:\/\/www.redbus.my\/<\/a><\/p>\n<p>A practical website to book bus travel in Malaysia.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner el_class=&#8221;sidebar-section-three&#8221;][vc_column_inner][vc_custom_heading text=&#8221;Interesting Facts&#8221; font_container=&#8221;tag:h4|font_size:24|text_align:left|color:%23333333&#8243; google_fonts=&#8221;font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:400%20regular%3A400%3Anormal&#8221;][vc_separator color=&#8221;#eeeeee&#8221; type=&#8221;full_width&#8221; thickness=&#8221;1&#8243; up=&#8221;&#8221; down=&#8221;&#8221;][vc_column_text]<\/p>\n<table class=\"table table-condensed sidebar-section-three-table\">\n<tbody>\n<tr>\n<td>\n<div class=\"fa fa-snowflake-o\" aria-hidden=\"true\"><\/div>\n<\/td>\n<td>1. Well-known shoe designer Jimmy Choo was born on the Malaysian island of Penang.<\/p>\n<p>2. The population is comprised of Malays, Chinese, and Indians.<\/p>\n<p>3. The main religion is Islam, but Buddhism, Hinduism, Sikhism, and Christianity are also practiced.<\/p>\n<p>4.Petronas Towers in Kuala Lumpur are the tallest twin towers in the world and hold the Guinness Book World Record.<\/p>\n<p>5.Malaysia is home to one of the stinkiest fruits in the world. The smell of the Durian is so bad that it is banned from many establishments.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row type=&#8221;container&#8221; padding_top=&#8221;&#8221; padding_bottom=&#8221;&#8221;][vc_column][vc_column_text]<\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;container&#8221; padding_top=&#8221;&#8221; padding_bottom=&#8221;&#8221; el_class=&#8221;three-top-tips&#8221; css=&#8221;.vc_custom_1599875304748{margin-left: 0px !important;border-right-width: 0px !important;padding-right: 0px !important;padding-left: 0px !important;border-right-color: #ffffff !important;}&#8221;][vc_column width=&#8221;2\/3&#8243;][vc_column_text] Tax is a topic that we all prefer to ignore. However, as an ex-pat, it&#8217;s necessary to understand how the tax laws in Malaysia affect you. Need to know The Malaysian tax year runs from 1 January to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":101869,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-kuala-lumpur.php","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"class_list":["post-102052","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Expats Tax Guide in Malaysia| Expat Info Desk<\/title>\n<meta name=\"description\" content=\"Learn all about the tax system for Expats and Global Nomads living in Malaysia. 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