Expatriate tax ebook - Malaysia

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax
There is no capital gains tax in Malaysia.

Inheritance, estate & gift taxes
There are no inheritance, estate and gift taxes in Malaysia.

Investment income
Generally, investment income (with certain exceptions) is aggregated with other types of income and subject to tax based on the tax rates set out above.

Local taxes
There are no local taxes in Malaysia.

Real estate tax
Real property gains tax at the rate of 5% is applicable if chargeable asset is disposed of within 5 years from the date acquisition.

Social security taxes
The employee provident fund (EPF) is a compulsory savings scheme for the employee's retirement.

Employees whose country of domicile is outside Malaysia (i.e. foreign citizens) are exempt from contributing; however they can choose to contribute.

Stock options
Benefits derived by employees from an employees’ share option scheme, in the form of shares offered at discounted price, are subject to tax.

Wealth tax
There is no wealth tax in Malaysia.

Other specific taxes
Not applicable

Information about Malaysia:

Last updated 27 June 2011

This information has been provided by SJ Grant Thornton, the Malaysian member firm within Grant Thornton International Ltd and is for informational purposes only. Neither SJ Grant Thornton nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
Disclaimer

Contact us

For further information on expatriate tax services in Malaysia please contact Murugan Anbanantham.

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