On 30 December 2021, the Ministry of Finance (MoF) announced that foreign source income derived by resident taxpayers will be exempt from tax from 1 January 2022 to 31 December 2026. The Malaysian government has agreed to exempt foreign-source income taxation (FSI) for resident taxpayers to ensure the smooth implementation of the tax initiative, the Ministry of Finance (MoF) said.
Under the Inland Revenue Board criteria and guidelines, corporations or limited partnerships are exempt from income tax, while individuals are exempt from tax on all types of income.
