FlagSageKey facts
| Tax basis | Mainly territorial |
|---|---|
| Tax year | Calendar year basis year for each year of assessment |
| Taxes citizens abroad | Not as a general rule |
| Residence tests recorded | 4 |
| Region | Asia |
How Malaysia decides tax residence
Each test is recorded separately with its own ID. Meeting or missing one test does not settle residence on its own.
182 days in the basis year
An individual is resident for a basis year if in Malaysia for periods amounting in all to 182 days or more. Presence for part of a day counts as a whole day. Malaysian citizens are not automatically resident; the same rules apply.
Under 182 days linked to an adjacent 182-day period
An individual in Malaysia for less than 182 days in a basis year is resident if that period is linked to a period of 182 or more consecutive days in the preceding or following basis year. Temporary absences for service in Malaysia, ill-health of the individual or immediate family, or social visits not exceeding 14 days in aggregate can form part of the period if the person is in Malaysia immediately before and after.
90 days plus prior years
An individual in Malaysia for 90 days or more in a basis year is resident if, in any three of the four preceding years of assessment, he was either resident or in Malaysia for 90 days or more. The days need not be consecutive.
Resident in the following year and three preceding years
An individual is resident for a basis year, even with little or no presence, if resident for the immediately following basis year and for each of the three immediately preceding basis years.
Reporting duties to check
- Declaring exempt foreign income. The LHDN guideline says taxpayers must keep documents showing foreign income was taxed abroad and declare in the income tax return form the type and amount of foreign income, the country where it arose and the foreign tax imposed. Check whether the 31 December 2026 end date has been extended in current guidance. Source
Living base
Foreign nationals live in Malaysia on passes and visas issued by the Immigration Department. Tax residence depends on physical presence under section 7, not on the pass held or on nationality.
How visas, permits and tax residence differ
Citizenship
Malaysian citizenship is governed by the Federal Constitution and administered by the National Registration Department. Routes, residence periods and the position on dual citizenship are not stated here; check current official guidance.
Questions to take to a professional
- How many days was I in Malaysia in each basis year, counting part days as whole days?
- Do any of my absences count as temporary absences that link my periods of stay?
- Could I be resident this year under the 90-day route or the following-year route?
- Is my foreign income received in Malaysia covered by the exemption, and was it taxed in the country of origin?
- Has the foreign income exemption period been extended beyond 31 December 2026?
- How would a tax treaty tie-breaker apply if another country also treats me as resident?
Official authorities
Sources
- Public Ruling No. 11/2017: Residence Status of Individuals (LHDN, 22 December 2017)Official guidance
- Guidelines: Tax Treatment in Relation to Income Received from Abroad (Amendment), 20 June 2024 (LHDN)Official guidance
- Malaysia: Information on residency for tax purposes (OECD AEOI portal)Official guidance
Other countries in Asia
- Countries covered
- Malaysia
- Sources
- 3 sources listed above
- Tax year
- Current rules as checked
- Review
- Not professionally reviewed
Sources checked November 8, 2026