Living in Malaysia: 182-day tax residency, rates and departure formalities

Malaysia treats you as a tax resident after 182 days of presence in the tax year, and it offers three other pathways to this status. Residents pay a progressive tax rate from 0 to 30 %. Non-residents are taxed at a flat rate of 30 %, with no further tax implications. France can also continue to consider you as a resident there: meeting only one of its three criteria is sufficient.

This page is based on information from the Malaysian tax authorities, updated between May and October 2026, and on French regulations. It does not cover foreign-source income received in Malaysia, inheritance tax, social security contributions, or visas: no official source consulted provides information on these topics. It also does not provide information on capital gains tax rates on real estate.

Tax resident: four criteria, only one is needed

The Malaysian administration reproduces Article 7 of the Income Tax Act of 1967. A person is a resident for a tax year if they meet one of these criteria.

For related stays, certain temporary absences count as time spent in service: service in Malaysia (including conferences, seminars, or studies abroad), health problems of the individual or a close relative, and social visits totaling up to 14 days. The administration's page does not detail any other counting rules: read Article 7 before counting your days.

This 182-day threshold differs from that of the Franco-Malaysian tax treaty, which stipulates 183 days for the taxation of wages earned by a resident of the other country. The two treaties separately: our page on the treaty details the second rule.

Resident or non-resident: two systems

According to the administration, the extent of an individual's taxation depends on their status. Tax is levied on income earned or derived from Malaysia. Residents are subject to the progressive tax scale and reliefs stipulated by the Income Tax Act. Non-residents are taxed at a flat rate of 30 %, without any relief.

The resident tax brackets, as displayed on the page for the 2023, 2024 and 2025 tax years:

The page does not provide the tax scale for the 2026 tax year: check with the administration.

Reliefs and rebates: what the resident can deduct

For the 2025 tax year, the tax authorities list a tax relief of RM 9,000 for the taxpayer and their dependents, a tax relief of RM 4,000 (capped) for the spouse, and RM 2,000 per unmarried child under 18. The tax authorities' general page for individuals also indicates a tax relief of RM 400 for the taxpayer and RM 400 for the spouse, limited to a taxable income of no more than RM 35,000; it does not specify the tax year in question. Non-residents are not entitled to any tax relief.

Declare: tax number and calendar

A foreigner who settles in the country applies for their tax identification number online, via e-Daftar on the MyTax portal. According to the government website, the application is made online via e-Daftar (starting January 1, 2024), and a copy of a valid passport is among the required documents.

The tax authorities have published the following filing deadlines: Form BE (salary income) by April 30th, or May 15th online; Form B (business income) by June 30th, or July 15th online. The website specifies that online deadlines are subject to change. Check the calendar for the year before filing.

Leaving Malaysia: the termination of employment notification and the tax authorization letter

Two pages of the administration deserve to be read before a final departure: the one on the end of employment, and the one on travel restrictions.

The notification of termination of employment. The employer must notify the tax authorities at least 30 days before the end of the contract, using form CP21 (CP22A in the private sector), and withhold any amounts owed to the employee until receipt of the Tax Clearance Letter. This applies to employees permanently leaving Malaysia. Failure to notify exposes the employer to a fine of RM200 to RM2,000 and/or six months' imprisonment, and the employer is liable for any taxes owed by the employee.

The "stoppage order". The government's travel restrictions page states that the status of a "stoppage order" can be checked via MyTax or the Immigration portal, and describes the conditions for lifting it: full payment, or temporary release upon payment of half the tax due, with the payment receipt and application submitted 5 days before the travel date, accompanied by a letter indicating the destination, reason for travel, and duration. This page does not define the measure or the circumstances under which it applies: it does not specify who may be subject to it.

Real estate: the RPGT and the CGT since 2024

The Real Estate Capital Gains Tax (RPGT) applies to gains on the sale of taxable assets located in Malaysia. Since January 1, 2024, the sale of shares in real estate companies by corporations, LLPs, trusts, and cooperatives is subject to capital gains tax, not the RPGT. The tax rates are not listed in the text of the page you read; we do not provide any.

On the French side: what remains taxable

Moving to Malaysia does not automatically terminate French tax residency. The doctrine establishes three criteria: the primary residence or place of residence, professional activity, and the center of economic interests. It states: "It is sufficient that one of these criteria is met." Our page on Article 4 B provides further details.

If France ceases to be your tax residence, you are only taxed there on your French-source income, subject to the tax treaty. The minimum rates are 20% of taxable income up to €29,579 and 30% of taxable income above that amount for income received in 2025, with an option to use the average rate when it is more favorable. The French wealth tax (IFI) continues to apply to your real estate located in France, if your net taxable assets exceed €1,300,000 as of January 1st. As long as you are domiciled in France, you must declare annually any accounts opened, used, or closed abroad, under penalty of a €1,500 fine per undeclared account; the French government website service-public.gouv.fr stipulates a €10,000 fine per account for accounts held in countries that do not have a tax information exchange agreement with France, a case that should be verified at the source.

Malaysian tax for a resident: numerical example (fictitious profile)

Situation. A hypothetical executive spends 200 days in Malaysia during the tax year. His taxable income from Malaysian sources amounts to RM 250,000 (hypothetical).

Issue. He wants to know the tax rate depending on whether Malaysia treats him as a resident or a non-resident.

Strategy. First, it checks the 182-day criterion, then applies the residents' scale tranche by tranche, and compares it to the flat rate of 30 %.

Result. At 200 days, it exceeds the 182-day threshold. Under the standard tax scale, the tax is RM 46,900, representing an average rate of 18.76%. Under the flat rate for non-residents, it would be RM 75,000, or RM 28,100 more.

This profile is fictitious. The calculation does not deduct relief or rebate, does not take into account other income, and says nothing about taxation in France.

Living in Malaysia: what changes depending on your situation

• Your number of days of presence during the tax year, and your stays in neighboring years.
• Your status with regard to the 90-day and continuous residence criteria.
• The nature of your income and where it originated.
• Whether or not you maintain your home, your business or your economic interests in France.
• A real estate sale project in Malaysia.

No results are guaranteed. These points are examined on a case-by-case basis, with a Malaysian professional for local law.