Malaysia Income Tax Rates 2025: Personal, Corporate, CGT & RPGT
Current Malaysia tax-rate guide covering resident and non-resident individuals, companies, qualifying micro, small and medium companies, capital gains tax, real property gains tax, withholding tax and the principal 2026 filing dates for Year of Assessment (YA) 2025.
Updated: 3 September 2026Malaysia Resident Individual Income Tax Rates - YA 2025
For resident individuals, Malaysia applies progressive rates to chargeable income. The latest published HASiL schedule for YA 2025 ranges from 0% to 30%.
| Chargeable income (RM) | Rate | Tax at end of band (RM) |
|---|---|---|
| 0 - 5,000 | 0% | 0 |
| 5,001 - 20,000 | 1% | 150 |
| 20,001 - 35,000 | 3% | 600 |
| 35,001 - 50,000 | 6% | 1,500 |
| 50,001 - 70,000 | 11% | 3,700 |
| 70,001 - 100,000 | 19% | 9,400 |
| 100,001 - 400,000 | 25% | 84,400 |
| 400,001 - 600,000 | 26% | 136,400 |
| 600,001 - 2,000,000 | 28% | 528,400 |
| Above 2,000,000 | 30% | 30% on each additional ringgit |
Official reference: HASiL - Individual Tax Rates.
Selected Individual Tax Reliefs for YA 2025
Reliefs reduce chargeable income when the statutory conditions are satisfied. Major YA 2025 items include RM9,000 for the individual and dependent relatives, up to RM8,000 for qualifying medical and care expenses for parents or grandparents, up to RM7,000 for qualifying self-education fees, and specified reliefs for insurance, EPF, PRS, SOCSO, childcare, medical expenditure and first-home loan interest.
Official reference: HASiL - Tax Reliefs.
Non-Resident Individual Tax Rate
As a general rule, non-resident individuals are taxed at 30% on specified Malaysian-source income such as employment, business, trade, profession and rental income, subject to applicable exemptions and special rates for certain income categories. Residence status is determined under Malaysian tax law and is not based only on nationality.
Separate rates can apply to items such as interest, royalties, public-entertainer income and certain service payments. A tax treaty may also affect the final treatment where its conditions are met.
Official reference: HASiL - Non-Resident Individual.
Malaysia Corporate Income Tax Rates
The standard corporate income tax rate is 24% of chargeable income.
| Company category | Chargeable income | Rate |
|---|---|---|
| Qualifying resident company / LLP | First RM150,000 | 15% |
| Qualifying resident company / LLP | RM150,001 - RM600,000 | 17% |
| Qualifying resident company / LLP | Above RM600,000 | 24% |
| Other companies | All chargeable income | 24% |
Broadly, the reduced rates are subject to statutory conditions, including Malaysian residence/incorporation or registration, paid-up ordinary share capital or capital contribution not exceeding RM2.5 million, gross business-source income not exceeding RM50 million, and applicable ownership restrictions. From YA 2024, the foreign ownership restriction is particularly relevant when testing eligibility.
Official references: HASiL - Corporate Tax and Public Ruling No. 8/2025 - Tax Treatment for Micro, Small and Medium Companies.
Capital Gains Tax in Malaysia
Malaysia now imposes capital gains tax under the Income Tax Act 1967 on specified capital assets. The regime applies, among other cases, to gains or profits of companies, limited liability partnerships, trust bodies and co-operative societies from disposal of unlisted shares in a company incorporated in Malaysia and certain shares of foreign controlled companies connected with Malaysian real property.
| Relevant capital asset | Rate |
|---|---|
| Capital asset acquired before 1 January 2024 | 10% of chargeable gain, or 2% of gross disposal price, where the statutory option applies |
| Capital asset acquired on or after 1 January 2024 | 10% of chargeable gain |
The current HASiL guideline states that the CGT return is filed through e-CKM and, for covered disposals, the return and tax payment are generally due within 60 days from the date of disposal.
Official references: HASiL - Guidelines (Capital Gains Tax for Unlisted Shares) and Capital Gains Tax Return Filing Programme.
Real Property Gains Tax (RPGT)
RPGT applies to gains from disposals of chargeable real-property assets in Malaysia. For a Malaysian citizen or permanent resident individual under Part I of Schedule 5, the current rates are 30% for disposal within the first three years, 20% in the fourth year, 15% in the fifth year and 0% from the sixth year onward for disposals from 1 January 2022.
Different RPGT rates apply to other disposer categories, including companies and non-citizens/non-permanent residents. From 1 January 2024, disposals of shares in real property companies by companies, LLPs, trust bodies and co-operatives that fall within the CGT regime are generally dealt with under the Income Tax Act CGT rules rather than RPGT.
Official reference: HASiL - Real Property Gains Tax Rates.
Selected Malaysia Withholding Tax Rates
Malaysia requires withholding from certain payments to non-residents and other prescribed payments. Common domestic statutory rates include 15% for interest paid to a non-resident and 10% for royalties, while section 107A contract payments to a non-resident contractor involve 10% plus 3% components. Treaty relief may reduce a statutory rate where the recipient qualifies.
Official reference: HASiL - Withholding Tax.
Malaysia Individual Tax Return Filing Dates in 2026
| Return | Statutory due date for YA 2025 | 2026 e-Filing grace date |
|---|---|---|
| Form BE - individual without business income | 30 April 2026 | 15 May 2026 |
| Form B - individual with business income | 30 June 2026 | 15 July 2026 |
Electronic filing requirements and deadlines can differ by taxpayer and form type. Taxpayers should verify the current Return Form Filing Programme before filing.
Official reference: HASiL - Return Form Filing Programme.
Official Malaysia Tax Resources
Important
Tax liability depends on residence status, source and type of income, exemptions, incentives, deductions, treaty provisions and the applicable year of assessment. This page is a general rate guide and should be read with the Income Tax Act 1967, Real Property Gains Tax Act 1976 and current HASiL rulings and guidelines.