Taxation in Malaysia
Malaysia uses a territorial taxation system. Residents are only taxed on Malaysian sourced income and the progressive tax rate on chargeable income reaches a maximum of 24%.
A 20% capital gains tax is levied on real estate belonging to non-citizens if the property is disposed of within four years of the purchase date.
The standard rate of GST is 6%.
Malaysia has an extensive network of double tax agreements with other countries, which means a resident of Malaysia may be able to claim a tax refund on foreign income taxed in overseas countries.