Before you start

Knowledge of your tax residency days in Malaysia
Income records (payslips, invoices, bank statements)
MyTax registration (for LHDN online filing)

Step-by-step

1
Determine your tax residency status
You are a Malaysian tax resident if you are physically present in Malaysia for 182 days or more in a calendar year (Jan 1–Dec 31). Residency is not linked to your visa type — even a tourist on a series of SVPs can become tax-resident. Residents pay progressive rates (2–30%) on Malaysian-sourced income. Non-residents pay a flat 30% on Malaysian-sourced income, withheld at source if employed by a Malaysian company.
OnlineWho: All long-stay residentsAssess at year-end; count your daysFree to calculate
2
Understand the foreign-income remittance rule (post-2022)
From January 2022, Malaysia ended the blanket exemption for foreign-sourced income remitted into Malaysia. In principle, income earned abroad and sent to a Malaysian bank account is taxable for tax residents. However: (a) the de minimis exemption covers income under RM 100,000/year remitted from countries that have a double-tax agreement (DTA) with Malaysia (most Western countries do); (b) DE Rantau holders (remote workers on the nomad visa) are specifically exempted from Malaysia tax on their foreign-sourced employment or freelance income. If you're on DE Rantau and your income comes from abroad, it is not taxable in Malaysia.
OnlineWho: Tax residents remitting income from abroadOngoing — assess annuallyFree; consult a tax agent if income >RM 100,000
3
Register for MyTax (LHDN online portal) and get a Tax Identification Number (TIN)
Register at mytax.hasil.gov.my to get your Malaysian TIN (or your employer will register you for one). You need a TIN to file taxes, open an EPF account (if employed) or submit rental income declarations. For DE Rantau holders: you should still register for a TIN and file a nil or exempt return to establish clean records — LHDN may request it.
OnlineWho: All tax residents and employees30-60 minutes to registerFree
4
File your annual return (e-BE or e-B form) by April 30
Individual tax returns are due April 30 for salary income (e-BE form) and June 30 for business/self-employment income (e-B form) for the prior calendar year. File via mytax.hasil.gov.my — enter income, claim deductions (lifestyle, medical, books, childcare — max RM 2,500 each for typical reliefs) and submit. LHDN calculates the tax owed or refund. First-time filers: register for MyTax first and set up your e-Filing credentials at least a week before the deadline.
OnlineWho: All tax residentsJanuary–April 30 (salary earners) or June 30 (self-employed)Free to file; tax payable varies by income

Documents you’ll need

Tax Identification Number (TIN) from LHDN
EA form from employer (for salaried employees) or invoices/bank statements for self-employed
Receipts for deductible expenses (lifestyle, medical, education, insurance premiums)
DE Rantau approval letter (if claiming exemption on foreign-sourced income)

Things most newcomers don’t know

The DE Rantau visa's foreign-income tax exemption is one of its most underappreciated benefits: you live in Malaysia, pay no Malaysian tax on your foreign remote income, and your home country's taxes depend on its own rules (US citizens must still file with the IRS; most EU countries have exit-tax or remittance rules to check).

MDec's published guidelines explicitly confirm DE Rantau holders are not subject to Malaysian tax on their foreign-sourced income, regardless of the 2022 remittance change.

Source: MDec DE Rantau programme guidelines

Malaysia has no capital-gains tax (CGT) on shares, crypto or foreign property — one of the few developed economies that doesn't. Real property gains tax (RPGT) applies to Malaysian properties but not to foreign assets or investments.

Historical policy choice to attract foreign investment and capital; no current plans to introduce CGT on financial assets as of 2026.

The PCB (Potongan Cukai Berjadual) monthly payroll deduction for employees means most PAYE salary earners have little to pay at filing time — it's effectively a withholding system similar to the UK/Australia.

PCB was calibrated on conservative rates, so most employees receive a refund rather than owe additional tax.

Common mistakes to avoid

Assuming the 2022 foreign-income remittance change applies to you as a DE Rantau holder — it explicitly does not, per MDec guidelines
Not registering for a TIN even if you have zero Malaysian-taxable income — LHDN requests TINs from all long-term residents with a bank account
Missing the April 30 filing deadline — LHDN charges a 10% late payment penalty plus a 5% monthly interest for unpaid tax
Confusing Malaysian tax residency (182 calendar days) with visa duration — you can become tax-resident on a tourist entry chain, which has different implications than for DE Rantau holders

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