Since Malaysia’s tax is territorial, taxable income include all income accrued in, derived, or remitted to Malaysia which is liable to tax. Any income from outside of Malaysia and received in Malaysia is exempted from tax. This is applied with the exception for other than a resident company carrying on the business of insurance, banking, sea, or air transport.
However, Malaysia has many double tax agreements with countries, so companies and individuals can avoid double taxation.
As a foreign national planning on relocating to Malaysia, and if you wish to draw up budget and have a better idea of your net salary, there are various taxes that you will need to bear in mind.
The main different types of taxes here include: