Malaysia Income Tax rates for Individuals

Malaysia individual income tax rates are progressive, up to 26%.
Individuals who do not meet residence requirements are taxed at a flat
rate of 26%.

Taxable Income RM Tax Rate Tax Payable RM
on the first 2,500 0% 0
on the next 2,500 1% 25
on the first 5,000 25
on the next 5,000 3% 150
on the first 10,000 175
on the next 10,000 3% 300
on the first 20,000 475
on the next 15,000 7% 1,050
on the first 35,000 1,525
on the next 15,000 12% 1,800
on the first 50,000 3,325
on the next 20,000 19% 3,800
on the first 70,000 7,125
on the next 30,000 24% 7,200
on the first 100,000 14,325
on the next 50,000 26% 13,000
on the first 150,000 27,325
on the next 100,000 26% 26,000
on 250,000 53,325
Above 250,000 26%

Basis – Individuals are taxed on income derived from Malaysia.
Foreign-source income is not taxable in Malaysia.

Residence – An individual is considered tax resident if he/she is in
Malaysia for 182 days or more in a calendar year. Alternatively,
residence may be established by physical presence in Malaysia for a
mere day if it can be linked to a period of residence of at least 182
consecutive days in an adjoining year.

Tax Filing status – A married couple living together may opt to file a
joint or separate assessment.

Taxable income – Resident individuals are taxed at progressive rates
ranging from 0% to 26%. Employment income includes most employment
benefits whether in cash or in kind.

Capital gains – Capital gains are not taxed in Malaysia, except for
gains derived from the disposal of real property or on the alienation
of shares in a real property company. The real property gains tax,
which applied to such gains, had been suspended since 1 April 2007,
but is reinstated at a rate of 5% as from 1 January 2010.

Tax Deductions and tax allowances – Various allowances and personal
deductions are available.

Other taxes on individuals:

Capital duty – No

Stamp duty – Stamp duty is levied at varying rates between 1% to 3% of
the transacted value of property transfers and 0.3% on share
transaction documents.

Capital acquisitions tax – No

Real property tax – Individual states in Malaysia levy "quit" rent and
assessment at varying rates.

Inheritance/estate tax – No
Net wealth/net worth tax – No

Social security – Employees are required to make contributions to the
EPF at a rate of 8% of remuneration and may contribute a nominal
amount to the Social Security Organisation (SOCSO).

Administration and compliance:

Malaysia tax year – Malaysia tax year is the calendar year

Tax Filing and Tax payment – Tax on employment income is withheld by
the employer under a pay as you earn (PAYE) scheme and remitted to the
tax authorities. Malaysia imposes a self-assessment regime. An
individual deriving employment income or business income must file a
tax return and settle any balance owed by 30 April or 30 June
respectively in the following calendar year.

Penalties – Penalties at various rates apply for failure to comply

Source : http://www.taxrates.cc