1. For Resident Individual
A Resident individual is assessable on income derived from sources in Malaysia and income received in Malaysia from outside Malaysia. W.e.f. Y/A 2004 income remitted into Malaysia from overseas by a resident individual, a trust body, a cooperative and a Hindu Joint Family be exempted from income tax
2. For Non-Resident Individual
A Non-Resident individual is assessable only on income derived from sources in Malaysia.
3. For Resident Company
A Resident company is assessable on income derived from Malaysia and income remitted to Malaysia from sources outside Malaysia.
Starting Year of Assessment 1995 onwards only income derived from Malaysia are taxable.
Banking, insurance, shipping and air transport businesses are taxed on world income scope. The Imputation System is applicable.
4. For Non-Resident Company
A Non-Resident company is liable to Malaysian tax when it carries on a business through a permanent establishment in Malaysia and is assessable on income derived only from sources within Malaysia.