Who is Taxable ?

Income tax shall be charged for each year of assessment upon the income of any person accruing in or derived from Malaysia or received in Malaysia from outside Malaysia

An individual whose total taxable income EXCEEDS the threshold value must register for an income tax file.

The scope of individual taxation depends on his residency status. Resident individuals are taxed according to the tax rate and eligible for tax reliefs in accordance with section 45A - section 49 of the ITA 1967. While non-resident individuals are taxed at a flat rate of 30% and are not eligible to enjoy any reliefs.

Any source of income derived from outside Malaysia and received in Malaysia is tax exempted