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Home / Tolley's Global Mobility: Employment Taxes (Worldwide excluding Europe) /Malaysia /6. Globally mobile employees /6.3 Inbound employees on assignment / 6.3.2 Tax exemption for foreign citizens working for qualifying companies
Commentary

6.3.2 Tax exemption for foreign citizens working for qualifying companies


Malaysia

Public Ruling No 12/2011 sets out tax exemptions which apply to non-Malaysian citizens. The exemptions apply to employment income derived from the following qualifying companies in Malaysia:

  1. Ìý

    •ÌýÌýÌýÌý operational headquarters

  2. Ìý

    •ÌýÌýÌýÌý regional office

  3. Ìý

    •ÌýÌýÌýÌý international procurement centre

  4. Ìý

    •ÌýÌýÌýÌý regional distribution centre

There are two types of exemption:

  1. Ìý

    •ÌýÌýÌýÌý exemption for duties performed inside Malaysia

  2. Ìý

    •ÌýÌýÌýÌý exemption for duties performed outside Malaysia

Payroll implications

Both exemptions are claimed in the annual income tax filing of the individual so the employer should continue to operate withholding on the full amount of employment

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Web page updated on 17 Mar 2025 15:05