Malaysia has announced updates affecting expatriate employment and tax compliance. From 1 June 2026, expatriate salary policies will introduce higher minimum thresholds, fixed employment durations, and mandatory succession planning for certain roles. Separately, tax filing for Year of Assessment (YA) 2025 introduces the Malaysian Income Tax Reporting System (MITRS), expanding digital compliance and documentation requirements.
Effective 1 June 2026, key updates for Employment Pass (EP) holders are:
| EP Category | Previous Minimum (RM) | New Minimum (RM) |
| Category I (Senior Management) | 10,000+ | 20,000+ |
| Category II (Skilled) | 5,000–9,999 | 10,000–19,999 |
| Category III (Lower-skilled) | 3,000–4,999 | 5,000–9,999 (RM7,000 minimum for manufacturing/manufacturing-related services) |
Employers must demonstrate plans to transition expatriate roles to Malaysian employees:
The Malaysian Income Tax Reporting System (MITRS) standardises submission of supporting documents and enhances digital compliance, increasing cross-verification and audit scrutiny.
You must submit a Malaysian tax return if you:
| Tax Form | Applicability | Due Date | Grace Period |
| Form E | Employees | 31 Mar 2026 | 1 month |
| Form BE | Residents with no business income | 30 Apr 2026 | 15 days |
| Form B | Residents with business/rental/freelance income | 30 Jun 2026 | 15 days |
| Form M | Non-residents | No business: 30 Apr / e-Filing: 15 May Carries on business: 30 Jun / e-Filing: 15 Jul |
15 days |
| Form P | Partnerships | 30 Jun 2026 | 15 days |
For further detailed guidance on tax, compliance and mobility requirements in Malaysia, visit our Malaysia Global Insights on the activpayroll website.
For further guidance on managing these updates and ensuring compliance, please complete our Contact Us form and a member of our expert team will be happy to assist with your queries.