Note: this article applies to non-Malaysians who are not permanent residents of Malaysia.
Foreign employees contribute under the Employment Injury Scheme. Only employer contributions are payable. This is independent of tax residency.
Foreign employees are not required to contribute, but may choose to do so. This is also independent of tax residency. For contribution rates, please click here.
Foreign employees do not contribute to the Employment Insurance Scheme.
Income Tax (PCB)
For income tax purposes, the rate of tax will depend on the employee's residence status.
Tax residence is based on time spent in Malaysia and not nationality - a Malaysian who lives and works overseas can be considered a non-resident.
The current tax structure is as follows:
Then, any income, fees, commissions or bonuses received will not be taxed in Malaysia.
This does not apply to:
PCB should be deducted for both residents and non-residents provided their income exceeds the minimum threshold for PCB.
For a full list of the income tax rates imposed by LHDN, please click here.
For more details on who qualifies as a resident, see here.