Back
Menu
SALARY PAYMENT IN Malaysian Ringgit (MYR, RM)
CONTRACT LANGUAGES Malay / English
PAYROLL TAX 13.22%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
Get Started
Hire and pay talents
with Horizons in
180+ countries
Malaysia
At the time of writing, the Corporate Income Tax rate in Malaysia is 24%.
Note that the Corporate Income Tax rate is expected to rise to 25% by the end of 2023.
| Taxable income (RM) | Tax rate |
|---|---|
| 0 < RM 150,000 | 15% |
| RM 150,001 to RM 600,000 | 17% |
| RM 600,001+ | 24% |
Personal Income Tax in Malaysia is calculated according to a progressive system of taxation.
Taxable income is based on yearly income in RM.
| Taxable Income (RM) | Tax rate 2023 |
|---|---|
| 5.000 – 20.000 | 1% |
| 20.000 – 35.000 | RM150 + 3% of income above 20.000 |
| 35.000 – 50.000 | RM600 + 8% of income above 35.000 |
| 50.000 – 70.000 | RM1,800 + 13% of income above 50.000 |
| 70.000 – 100.000 | RM4,400 + 21% of income above 70.000 |
| 100.000 – 250.000 | RM10,700 + 24% of income above 10.000 |
| 250.000 – 400.000 | RM46,700 + 24.5% of income above 50.000 |
| 400.00 – 600.000 | RM83,450 + 25% of income above 400.000 |
| 600.000 – 1.000.000 | RM133,450 + 26% of income above 600.000 |
| 1.000.000 – 2.000.000 | RM237,450 + 28% of income above 1.000.000 |
| 2.000.000+ | RM517,450 + 30% of income above 2.000.000 |
Non-residents pay a flat rate of 30% on total taxable income
Employer contributions in Malaysia total a maximum of 14.45%.
Employer contributions include;
| Contribution item | Contribution rate |
|---|---|
| Employees Provident Fund/EPF | 12-13% |
| The Social Security Organization/SOCSO | 1.25% |
| The Employment Insurance System | 0.2% |
Employee contributions in Malaysia total a maximum of 11.2%.
Mandatory employee contributions include;
| Contribution item | Contribution rate |
|---|---|
| Employees Provident Fund/EPF | 11% |
| Employment Insurance System | 0.2% |
Your business can easily hire employees in Malaysia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Inland Revenue Board of Malaysia.
Yes. Employer contributions (maximum) total 14.45%.
Payroll taxes are paid via the Inland Revenue Board of Malaysia’s online tax portal.
Headquarters
71 Robinson Road #13-153
Singapore 068895
+65 3158 1382
Europe
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
Americas
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
Horizons © 2024 – Privacy Imprint & Terms Third-Party Processor GDPR Policy
