Income Tax

Taxation in Malaysia for Non-Resident Individual


Under Malaysian Tax Law, both Residents and Non-Resident are subject to Income Tax on Malaysian source income.

Residents and Non-Resident status will give a different tax regime on income earned/received from Malaysia. So it is very important to identify whether you are Residents or Non-Resident in regard to Malaysia Tax Law.

An Individual will be considered Non-Resident for Income Tax purpose if the individual is physically present in Malaysia for less than 182 days during the calendar year regardless of the citizenship or nationality. The 182 days period can be consucative period or not.

If the individual is Resident in regard to Malaysian Tax Law, the individual is subjected to normal income tax.

However, if the individual is Non-Resident in regard to Malaysian Tax Law, the income tax rate is higher when compare to Resident.

Non-resident Tax rate is tabulated in the table below,

Types Of Income Rate (%)
Business, trade or profession 25 (With Effect From Year Assessment 2015)

26 (Year Assessment 2010 – 2014)

Employment
Dividends
Rents
Public Entertainer 15
Interest
Royalty 10
Payments for services in connection with the use of property or installation, operation of any plant or machinery purchased from a non-resident
Payments for technical advice, assistance or services rendered in connection with technical management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme
Rent or other payments for the use of any movable property

However, Non-Resident Individual will not be taxable if

  1. Employed in Malaysia for less than 60 days
  2. Employed on board a Malaysian ship
  3. Age 55 years old and receiving pension from Malaysian employment
  4. Receiving interest from banks
  5. Receiving tax exempt dividends

If taxable, you are required to fill in M Form .

Pay Income Tax via Telegraphic Transfer / Wire Transfer


If you are outside Malaysia and would like to make income tax payment via Telegraphic Transfer (TT) or Wire Transfer, below are the information that you need,

Tax payment is to be paid directly to Inland Revenue Board of Malaysia (IRBM) bank’s account. Details of the account are as follows:

Bank Account Number:- 8000766957
Beneficiary (Payable to):- Ketua Pengarah Hasil Dalam Negeri
Name and address of the bank:- CIMB Bank Berhad, Cawangan Jalan Tunku Abdul Halim Tingkat Bawah, Blok 8, Kompleks Pejabat Kerajaan, 50480 Jalan Tunku Abdul Halim, Kuala Lumpur, Malaysia
Swift Code:- CIBBMYKL

Tax payer is to furnish the following information.

1. Tax Payer name
2. Tax reference number
3. Transaction reference number for the TT/IBG/ EFT
4. Tax assessment year
5. Payment code
6. Installment number, if any.

The above information must be sent to IRBM office at Jalan Tunku Abdul Halim, Kuala Lumpur via fax at 03-62013490, 03-62019637 or 03-62016857 on the transaction day. Alternatively, the same can be email to the following officers:

Pn Azreen Abd Rahman – [email protected]
En. Aziram Bin Mohd Nor – [email protected]
Pn. Saidah Bt Mohd Nor – [email protected]

IRBM official receipt can only be issued upon receiving the above information and sum received confirms by bank. Failure to adhere to the procedures may cause delay in updating tax accounts and the account is still subject to late penalty.