Income Tax Calculator Malaysia For Expats

That means that your net pay will be rm 59 418 per year or rm 4 952 per month.

Income tax calculator malaysia for expats. Under the mm2h visa expats are not required to pay tax on their income no matter where it comes from as long as it s remitted from overseas. Expat employees who work in malaysia for more than 60 days but less than 182 days are classed as non residents and must pay income tax at a flat rate of 30. If you make rm 70 000 a year living in malaysia you will be taxed rm 10 582. This marginal tax rate means that your immediate additional income will be taxed at this rate.

This means that low income earners are imposed with a lower tax rate compared to those with a higher income. There are also differences between tax exemptions tax reliefs tax rebates and tax deductibles so make sure you. Expat employees who work in malaysia for more than 182 days are classed as residents they must pay income tax at the progressive rates set by the malaysian government. According to section 45 of malaysia s income tax act 1967 all married couples in malaysia have the right to choose whether to file individual or joint taxes.

As a general rule of thumb if both spouses are earning high incomes in the year of assessment it is always recommended to opt for separate assessment to leverage on the tax reliefs. Currently cash rates are at 3 while five year deposit rates are at 5. Your average tax rate is 15 12 and your marginal tax rate is 22 50. If your income is earned in malaysia it is liable for tax.